Whenever your car is severely damaged as a result of an accident, a car insurance company may deem the car as a total loss. This happens when the damages becomes so severe that it is generally impractical to repair it. However, the situation is different for the more valuable cars and the older-model cars. For valuable cars, it would usually mean that the car has sustained irreparable damage. For older vehicles, even minor damage can have it classified as a total loss. Even cosmetic damage, such as a scratch, can be grounds to consider a car that is 10 years and older to be a total loss since the cost for repair is more than the car’s market value.
Once the insurance company classifies a vehicle as a total loss, the owner will have to choose between relinquishing the car over to the insurance company or retain the salvage rights to car. An option to sell junk car Atlanta can potentially help the owner earn more money than what the car is worth. Given, of course, that it is done properly.
Calculating the junk value of your car isn’t an exact science. There are no standard rates either on how much a junk car is worth. Fortunately, these figures are negotiable and the owner can work with the insurance company to arrive at a price that is favorable to both parties. Here is a quick rundown of what’s involved in the process of assessment and valuation when you decide to sell junk car Atlanta:
• The initial estimate. The insurance company will get the estimate junk value of your car by getting the average between the trade-in value of your car and its wholesale value.
• The final estimate. The insurance company will then take into account any pre-existing damage and the general wear-and-tear in the calculations and subtract it from its overall market value. The resulting value will be your car’s final market value. The insurance company will salvage your car for 75% of its market value with the salvage figure always fetching less than the cash value of the car. The insurance company will then auction your car at a salvage yard. Whatever money they raise from it will be used to reimburse the cost of the claim.
• Salvage Rights. There are a few things that you have to keep in mind if you do decide to keep the salvage rights to your car rather than to sell junk car Atlanta. Your car will be retitled with a salvage title. If you plan to use the junk vehicle for parts, you won’t have to get insurance for it. If, for some reason, you still plan on driving the vehicle, you will need to carry liability insurance for the car.
A lot of insurance companies do not provide the full coverage for a salvaged vehicle. This is due to the fact that the car has already been deemed as a total loss by one insurance company and is no longer worth anything. This applies to both liability cover and property damage cover. Check with your insurance agent to find out if it is going to cause some problems for you when decide to get an insurance policy for your car. This information is important when you weigh the financial impact of keeping a salvaged vehicle or selling it to a willing buyer.
Keep in mind that you also bear the responsibility of disclosing the fact that your car is a salvage to any potential buyers when you sell junk car Atlanta. Should you decide to sell the car sometime in the future, your buyer has the right to know that the car that they are buying is a salvage so that they can make an informed decision.