We Pay Cash for Junk Cars in Los Angeles
What Does It Mean When Your Car Is Totaled?
If you have collision coverage it will pay for your vehicle’s damage if you hit an object or another car. A basic auto insurance policy normally won’t pay to fix your car if it’s been totaled. If your car is covered and it is totaled, your insurance company has decided the repairs will cost more than the car is worth, or that the car is too damaged to repair. If needed repairs cost $10,000 but the vehicle is valued at $8,000, your insurance company will likely declare it a total loss (a.k.a Salvage.) In California an insurer is required to total your car if repair costs exceed a certain percentage of the car’s value, typically around 70%.
Once a car is totaled, your insurance company will then owe you either the current cash value of your car or the estimated cost to replace it with one of equal value. it depends on what your auto insurance policy says. Your insurer will figure out the current cash value of your wrecked vehicle by considering the following information:
- Make & Model
- Mileage
- Age
- Condition
- Demand for the vehicle at the local auto auction
- Resale value of the parts and metal (aka the salvage value)
- Possibility of unseen damage (leaks, alignment issues, etc.)
How To get your Totaled Car From the Insurance Company
If you want to fix your totaled car, you can buy it back from the insurance company. The car will have a dramatically reduced value so you can buy it back for pennies on the dollar. Once you get it back you can start shopping around for repair quotes. In California, you can keep a salvage vehicle, fix it and sell sell it. Just tell your insurance agent that you want to keep the vehicle.
If you retain the car the insurance company will still send you a check, They’ll subtract the amount they would expect to make from the car selling at auction along with your deductible. At this point you are free to have the vehicle repaired or sell it as is.
What does it mean if Title is branded Salvage in California?
California car insurance law requires salvaged vehicles to have their title marked with a “salvaged” brand. This means that the vehicle was involved in an accident or incurred considerable damage from other acts likes flood vandalism, or theft. You can read more about how the California DMV defines branded titles.
A vehicle becomes “salvage” when it has been wrecked or damaged beyond its value in damages and too expensive to repair. When the cars registration is either renewed or it’s sold to a new owner the Department of Motor Vehicles (DMV) issues a salvage title for the vehicle.
A “rebuilt branded” vehicle is one that was reported by the owner or insurance company as a total loss and has been repaired to an operational condition. After being repaired and re-registered with the DMV it is titled as rebuilt.
In order to re-register a rebuilt salvage vehicle you will need to have invoices for all the parts used in the rebuilding of your vehicle. Then an application for registration along with a vehicle construction statement will need to be given to the DMV. Rebuilt salvage vehicles are also required to be inspected by the DMV or the California Highway Patrol (CHP) before DMV can issue a new title and registration.
What to Consider Before Keeping A Totaled Vehicle
If you believe your vehicle can be repaired and made safe to drive again. You might consider a few factors before making your decision.
Repair Costs
If your insurance company doesn’t think the repairs to your vehicle are worth fixing and you are not an expert at body work, be sure to get the opinion of a pro. One of the few ways a totaled vehicle can be worth keeping is if you are knowledgeable about auto repairs and can do the work yourself for a lot less than it would cost to pay a body shop.
Passing Inspection
Its difficult to get the California DMV to approve damage repairs and re-brand the title as a “rebuilt.” You will have to get your repaired vehicle inspected, and if the state won’t sign off, you will not be able to register the car and drive it legally. Visit the California DMV website to find out more about what they require to put a salvage vehicle back on the road.
Finding Insurance
There is the possibility you’ll have trouble finding a company willing to insure your rebuilt vehicle. You will find it next to impossible to locate an insurer willing to insure your vehicle before repairs have been made. Insurance companies are reluctant to offer a policy on a car that has been branded a salvage. You may only be able to get liability coverage.
Resale Value
A salvage title reduces the resale value of your vehicle by 20% to 40%, most likely more.
What if You don't carry collision insurance
if your vehicle is totaled and you don’t have comprehensive or collision coverage, you will have to pay out of pocket to buy a replacement vehicle. If the accident is your fault and you don’t have collision insurance, your best option is to sell the car in its current state. You will still be able to recover something through the salvage value, which is the amount of money that a salvage yard will pay for the parts and frame.
Get Cash for junk cars fast
If you have a totaled car call Sell Junk Car Fast Los Angeles. We buy total loss junk cars and help you with the cash you need to put towards a new or used vehicle.