After a major accident the insurance company’s loss adjuster will determine if your car is repairable or has to be totalled. Apart from the immediate monetary considerations, there are other factors, such as the eventual resale value of the vehicle, which need to be taken into account.

The psychological effect of a major accident is often that traumatised drivers feel unable or uncomfortable getting into their repaired car again, even though the vehicle is now fully roadworthy and safe to drive. Many drivers have quite an emotional attachment to their car and feel bereaved to a certain extent when the car is totalled and lost to them.

Totalled Cars

Deciding if after a major accident your car is repairable or to be totalled will depend on the extent of damage that the major accident caused and the value your car had before the accident. A totalled car will have suffered considerable damage, such as 65% damage to the front part containing the engine combined with 10% damage to the sides and 25% damage to the rear of the car. The extent of the damage will be determined by the speed of the vehicles involved in the major accident, the angle of collision, road condition and weather, as well as the make and model of the cars involved.

If your car was a modern, well-designed and regularly maintained vehicle, then damage suffered in a major accident is likely to be less than that involving an older model or less well maintained car.

You may consider selling the car to salvage or scrap yards but you will not recoup much of your costs. Selling off the undamaged spare parts may be a way to recover some money, particularly if your car was a classic or vintage car, where spare parts are always sought after by collectors.

Repairable Cars

Depending on the amount of damaged caused by the accident, it may be worth to repair the car, even though it will have lost in resale value. Buying a new car may not be possible, if you are still paying off a large loan on the current one. You may be fond of that particular model and prefer a repaired car to a new one.

Your repair garage will have equipment for pulling and aligning heavy major frame and body work jobs. The vehicle will typically end up on a portable pulling frame before repairs can be carried out. The body repair shop may take quite some time before your car is roadworthy again and if upon a thorough inspection concealed damage reveals further repairs are needed, you may be looking at a huge repair bill exceeding the value your insurers have put on the job.

You will have to take into account that your insurance company may increase your policy payments, if they think you caused the accident. In extreme cases they may refuse to insure you completely. If you are not at fault, your insurers will be able to get reimbursement from the other motorist’s insurers and you will not be penalised financially.

Reference: Auto Transport > Garage > Criteria for Damage Investigation