The age of a vehicle is key when receiving any compensation from an insurer, especially if said vehicle is new and you do not want to risk losing your entire investment as a result of an accident. And it is that, all drivers are exposed to thousands of probabilities of suffering an accident. Therefore, the best recommendation in any situation on the roads is to be prepared with a policy in which we have good coverage to bring the eventuality in which we are involved to a satisfactory and effective resolution.
What is called a total loss?
Let's start at the beginning, let's understand the definition of this term, since one of the most important aspects in the general conditions of a car insurance policy is the total loss of the vehicle, which corresponds to what is normally called total loss. . A vehicle is declared a total loss when its repair, after an accident, is higher than the value of the car itself. Some reasons why this can happen are:
- The car has been stolen and does not appear or later appears with very serious damage
- The car has suffered an accident and its condition is irreparable
- The car has caught fire and there is no way to recover it
It is advisable to take out car insurance, in a reliable company
https://www.arpem.com/seguros-coche/reale/ And if the car is new, it may be of interest or great help to contract total loss coverage and know how to act in any type of situation that may arise.
When is it considered by the insurer as a total loss?
When insuring a vehicle, what is actually insured is an amount of money, therefore, what the insurer will pay at most will be the same amount of money insured. So, in many insurers it is normal for the vehicle to be considered a total loss when the value to be paid is higher than the insured amount. There are other insurers that consider total loss the moment in which the value of the repair exceeds 75% of the repair. All insurance companies have their own standards and conditions for considering what happened to the vehicle as a total loss. The insured amount will depend on the age of the car and the type of policy we have taken out. Since the two factors that indicate the amount to be compensated in the event of a total loss are:
- Years of vehicle age
- New value, market value or market value
Value to new
If the policy states that in the event of a total loss the compensation to be received is the new value, then we can assume that it will always be better than the vehicle. Since the amount of money that the vehicle cost when it was new will be received. In this case the compensation is higher. Therefore, in general, the lower the barrier to consider a total loss car, the better for the user, because he will obtain the value of a new car.
Market value the market value
This refers to the situation where it is usually not very beneficial for the vehicle to be declared a total loss. Because when the vehicle is of a certain age, even if it is in good condition, the compensation that the company would pay could be less than the value of a similar car on the second-hand market. It would be very difficult to find another car that is in good condition for the value that has been obtained for which it has suffered an accident. A vehicle repaired after a hit will no longer be as good as it originally was, and its depreciation will be due to the hit itself. Therefore, everything depends on the policy that has been signed with the insurer and the agreements that have been reached to respond to any mishap. So have a good
arpem insurance comparator to choose one, it will never hurt. Comparing between companies helps us find the coverage that best suits our needs. Because no one knows better than us what type of driver we are, since the less likely we are to suffer an accident, the greater the benefits we will have with the insurers.
What insurances compensate when the car suffers a total loss?
To have this level of protection, you must have fully comprehensive car insurance, since this type of insurance covers your own damage. But if what you have is extended third-party insurance, it usually lacks this coverage. Another option is that you have a flexible or open policy in which you can add coverage and be able to design insurance to suit you. An all-risk insurance guarantees compensation for your own damage, as well as in the event of theft or fire. As long as the vehicle can be repaired, the company will bear the repair costs. However, there are many differences between all-risk insurance, so it is advisable to compare to find car insurance with a good relationship between quality and price.
Can my car be repaired if it has been declared a total loss?
This depends on some variables, since it is very possible that a car is irrecoverable even if it has a repair process. That is why we must always read the small print of the policy, since in the small print it is possible to find the information that in the event that the car is declared a total loss, but the insured wants to make the decision to repair it, the policy will continue maintaining the minimum guarantees in force, such as civil liability.