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's 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 total loss is determined based on:
- 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.