Question
What happens if my quote for repairs is higher than value of car?
Quote for accident repair is higher than what I paid for the car (used). I'm not at fault. What are my options? The quote for repairs is $7,000 and I only paid $4500 for the car when I bought it. Will the insurance cover it? They are still investigating and I just want to know my options before I decide to have it fixed or not.
Answer
There are several things to think about here. One, it sounds like your vehicle is totaled. The definition of a totaled vehicle varies by state. California is what is called a total loss formula state. Meaning a vehicle is determined to be a total loss if the cost of repairs (your $7,000) plus the scrap value of the vehicle is greater or equal to the actual cash value of the vehicle.
Although I do not know the scrap value or absolute cash value of the vehicle (chances are, it is lower than $4500 because vehicles depreciate in value), it is more than likely your vehicle will be totaled. My best recommendation is to contact the at-fault party's increase and file a claim. You should be paid out the value of the vehicle at its current worth. You can check Kelly Blue Book online to get an estimate for what you might receive. I would not file a claim with your insurance company because the repairs aren't worth it considering your vehicle's current value. Check out our guide to filing claims to learn more about when to file a claim and what to expect from the process. Good luck and don't hesitate to ask if you have any more questions.