What happens if the insurance company says my damaged car or truck is a “total loss?
A vehicle that is considered a “total loss” has repair costs that are greater than the Fair Market Value (FMV) of the vehicle. In other words, it will cost more to fix the vehicle than the vehicle is worth. The insurance company will only pay you for whichever cost is less. For the state of North Carolina, a total loss is when the cost of repairs and damages equals or exceeds 75% of the pre-accident cash value or FMV. Your policy will dictate the requirements for the insurance company. Most policies DO NOT require the insurance company to provide you with a comparable replacement; just the value of your loss. So, if you own an older model car with a low value, you will often be quite disappointed when you discover that your “total loss” means you get a small amount of cash that cannot be used to get you a vehicle like the one you lost. You have choices with a total loss vehicle. You can keep the car and find a way to make it run (perhaps cheaper than the adjuster quoted) or you could g
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