No matter how much you wreck or damage a car, it is never entirely void of value. However, if the cost to repair the damage exceeds a certain percentage of its current market resale value, you could be looking at a total loss. Continue reading to learn what this average percentage is, plus a bonus tip on how to earn the maximum profit by selling a totaled car in Indianapolis, Indiana.
Actual Cash Value (ACV)
In order to determine if a car is totaled or not due to the amount of damage it has, you need to calculate the Actual Cash Value, or ACV. This number will give you a basis to predict what the insurance company will do with your car or truck. Actual Cash Value will be calculated by the insurance company using specific factors relevant to your vehicle, including the make and model, after-market modifications or features, pre-incident damages, and similar, regional auto sales of the particular vehicle.
3 Qualities of a Total Loss Vehicle
There are three key indicators of a totaled car. A vehicle will be deemed a total loss if it meets even one of the three:
➀ It cannot be safely repaired.
➁ The cost to repair exceeds the ACV.
➂ It meets Indiana’s total loss guidelines.
Your car does not have to be 50% damaged to meet the total loss guidelines listed above. It can be less than 50% damaged or more than 50% damaged and be deemed totaled. For this reason, it is important to have your vehicle properly evaluated and diagnosed by a licensed mechanic.
How to Keep a Totaled Car
In Indiana, you are permitted to keep your totaled car whether it is insured or not. However, if you want to still collect from your insurance, keep in mind that they will pay you the pre-crash value, but subtract your policy deductible and the amount of money that the insurance company would have gained by selling your totaled vehicle to a salvage yard. Is this the wise way to go? It depends on your intentions.
If you want to keep a totaled car for the purpose of reselling it, you should avoid claiming it under your insurance. Instead, sell directly to an Indianapolis junk car buyer for the maximum payout. This cuts out the middleman, so you make more money!
Are you looking for a well-established and ultra-professional auto salvage yard that can pay out top dollar for junk cars and motorized equipment in Indy? Contact GC’s Junk Cars at 317-608-2188 to get paid cash on the spot by a trusted junk car buyer in Indianapolis, Indiana. We provide FREE junk car removal!