Car Total Loss Explanation
Summary
Insurance companies in Kentucky typically total a car if repair costs reach or exceed 75% of the cars value. Since your moms repair cost ($18,000) is close to the cars value ($19,200), the insurer may have determined its more cost-effective to total it. The insurance payout will first go towards paying off the loan. Any remaining amount, if any, would be given to your mom. For further personalized advice, you might want to consult the Kentucky Department of Insurance.Full Conversation
My mom was in a car accident. Her repairs were * and the total cash value is *. They still totaled the car why is that?
Hi ****,
I'm sorry to hear about your mom's accident. Insurance companies often declare a car a total loss if the repair costs are close to or exceed a certain percentage of the car's value. This threshold varies by state and insurer.
Can you please provide your location to give more specific information?
Kentucky
Hi ****,
In Kentucky, insurance companies typically total a car if the repair costs reach or exceed *% of the car's actual cash value. Since your mom's repair cost ($*,*) is close to the car's value ($*,*), the insurer may have determined it's more cost-effective to total it.
If you need further assistance, you may want to contact the Kentucky Department of Insurance.
Kentucky Department of Insurance
Phone: (*) *-*
Website: http://insurance.ky.gov
But she could have it repaired ? She had a loan out too on the car
Hi ****,
I'm sorry for the continued issues. While your mom could technically have the car repaired, the insurer's decision to total it is based on cost-effectiveness. Since there's a loan on the car, the insurance payout will first go towards paying off the loan. Any remaining amount, if any, would be given to your mom.
If you have further questions or need advice, consider reaching out to the Kentucky Department of Insurance.
~Kentucky Department of Insurance
Phone: (*) *-*
Website: [http://insurance.ky.gov](http://insurance.ky.gov)
It’s just she would just have a deductible to pay and then have her car fixed and have her car back vs having no car and having to immediately pay off the loan with little left over
Hi ****,
I understand the frustration. Here are some points to consider:
- **Deductible:** Your mom would pay the deductible if she opts for repair.
- **Total Loss Payout:** The insurance payout would first cover the loan. Any leftover would be given to your mom.
- **Loan:** If the payout doesn't cover the loan fully, your mom may still owe the balance.
For further personalized advice, you might want to consult the Kentucky Department of Insurance.
~Kentucky Department of Insurance
Phone: (*) *-*
Website: [http://insurance.ky.gov](http://insurance.ky.gov)
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