My car got totaled!
“Experience Amazing”….and that is Lexus for you! The relentless pursuit of perfection has created the iconic brand Lexus…and my family fell in love with our Lexus ES 300h at the first sight! We have driven through the shorelines of California and the high mountains of Grand Canyon in our gorgeous autumn shimmer Lexus. And then the unfortunate event happened. Our beloved Lexus got hit by a hailstorm and upon going through the insurance assessment, the vehicle was declared as “totaled”!
What does ‘totaled’ mean?
The insurance company will look at the actual cash value (ACV) of your car vs. the cost to repair it. If the cost to repair the car is about the same or more than the value of your car, the insurance company will likely consider it totaled.
Some companies might total your car even if the cost to fix it is lower. Yes….you read it correct!
I couldn’t agree to the fact that my insurance company decided to ‘total’ our Lexus because of a hailstorm damage. I believed that my car is worth more than what the insurance company decided to pay me ($).
What if you think the car is worth more?
Negotiate…Negotiate…Negotiate! Be prepared to share all the data points with the insurance company.
If you think that your car is worth more than the ACV, you should try to convince the insurance company to adjust the value. Never settle for the initial offer from the insurance company.
1. Get quotes from local car dealerships for a used car with similar mileage and model year.
2. Look up selling prices for similar cars online.
3. Ask for the ‘Market Valuation Report’ from your insurance company and compare that with #1 and #2.
4. You could also use a ‘Public Insurance Adjuster’ to settle your claim. They are experienced in negotiating claims with the insurance company on your behalf. In most cases, these companies do not have any upfront charge. https://autoclaimspecialists.com/ is such a company! I’m not endorsing them through this post….but I’ve used their service and they did a good job for me.
What next?
If the insurance company still considers your car to be a total loss, then you have two options: accept the check or repair the car yourself.
If you decide to accept compensation from the insurance company, then they’ll take ownership of the car and recover its scrap value, and you can put the money towards buying a new car or going to Vegas to try your luck 😊!
Another option for a totaled vehicle is to keep the car and pay for the repairs yourself. In this case, the insurance company will send you a check for the ACV minus the salvage value of the car — the value left from selling the car’s scrap metal and intact parts. After the car is repaired, you’ll need a new title recording that the car is a salvage vehicle. If you absolutely need a car and can’t afford to buy a new one, repairing your totaled car could be a good option.
Fix it yourself!
If you think the quoted repair costs are too high, look for quotes from nearby garages. By doing a little research, you could potentially save thousands of dollars!
Who gets the payout if your car is totaled?
There are two scenarios based on vehicle ownership
· Owned by you: the payout is paid to you
· Loaned: The amount paid first goes to the lienholder and if there is any remaining, it would be paid to you.
Conclusion
After several negotiations with the insurance company, I decided to accept a check ($$). We went to the repair facility, cleaned up the car…and bid a final adieu to our adorable Lexus.
We have so many fond memories about our Lexus. We moved to our new home in this car! We travelled far and wide through the country side in this car, rain or shine. Our Lexus lived a good life….and Thank you for the love, our beautiful car. We never thought we would bid a teary goodbye to our beloved Lexus!
How foolish I’m when it comes to cars. Our Lexus, after all: is a car. A thing, however imbued with meaning and nostalgia.
“You will never know the true value of a moment, until it becomes a memory!”
“Experience Amazing”….and that is Lexus for you!
