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.

Aug 9, 2018 Vallejo, CA

Ava Lynch

Aug 9, 2018

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.
Although I do not know the scrap value of the vehicle or actual cash value (chances are, it is lower than $4500 because vehicle's 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 a file a claim. Your should be paid out the value of the vehicle at it's 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 value of the repairs aren't worth it considering how much your vehicle is worth.   Here is some information on what to expect when you file a claim. Good luck and don't hesitate to ask if you have anymore questions.

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