What Does Car Insurance Total Loss Mean?

What Does Car Insurance Total Loss Mean?

Anyone who experienced a car accident understands what happens when a car gets totaled. In cases where your car was totaled, you can’t repair it without the costs being more than it’s worth. It costs more to repair than the actual value of the car (ACV). Whenever this happens it makes more sense for the insurance company to total the car and give you the money to buy a new car. Just remember that you need either property damage liability or comprehensive or collision insurance on your policy.

 

When Will an Insurance Company Total the Car?

You see a few cases where the insurance company lists the car as a “total loss.” Not all total losses will be correct, and in some cases, an insurance agent made a mistake. This is where some people will buy salvaged vehicles that were once a total loss. However, this practice comes with risk if you don’t know what you’re doing.

They usually total the car if the damage amount meets the state’s total loss threshold. The total loss threshold speaks about how a damaged car has come close to the actual cash value. For example, if the repairs will cost 75 percent of the total, the insurance agent might choose to total the car. The threshold varies from one state to the next and ranges anywhere from 50 percent to 100 percent. Colorado, for example, is 100 percent, whereas New Jersey is set at 80 percent.

Some states like California don’t use the total loss threshold. Instead, they calculate the total loss with the pre-accident value. This formula uses the repair costs plus the salvage value. It can’t exceed the value of the car.

They will also total the car when the repairs exceed the ACV of the car. Finally, in some cases, you can’t repair the car. Especially if the damage happened to the body of the car, it could make the vehicle unsafe to drive. Damage to the body often costs thousands of dollars to repair. Even if you repair them, these cars have a reputation as unreliable and dangerous.

Google, “auto body shop near me,” and you will see businesses that can help with damage to the body of the vehicle.

 

What Happens if They Declare Your Car a Total Loss

If an insurance company declares your car a total loss, it means that the cost of repairing the car is more than its current market value. The insurance company will pay you the market value of the car, which is usually the amount you would get if you sold the car in its damaged condition. You will then need to either buy a new car or find a way to repair the car yourself if you want to continue driving it.

First, you must agree to the car as a total loss, but in most cases, car owners don’t have a problem with doing this unless the insurance company hopes to give an unfair settlement. You have a right to reject the amount. Next, you will follow a series of steps to accept the car as a total loss. The faster you do this process, the smoother it will become.

First, remove your license plates and personal valuables from the vehicle. Next, you will take in the key and leave it with the claims adjuster. You need to send in spare keys with them as well. After you do this, the insurance agent will hand you some paperwork to fill out.

Those who lease their cars will need to contact their leasing company. The insurance company will reimburse the leasing company for the ACV of the car. This subtracts the possible deductibles. Anyone who didn’t lease their car will receive a check for the ACV of the car allowing them to buy a new car. In most cases, the insurance company will take control of the vehicle after they declare it as a total loss.

 

What if the Insurance Settlement is Unfair?

We encourage you to scrutinize your insurance company before you agree to an insurance settlement. In many cases, insurance companies will attempt to settle for the least amount of money possible. You have a right to negotiate or dispute the amount that they wish to give you. Until you accept an offer, you can’t move forward in the process, however.

When you dispute an insurance settlement, you might point out how the insurance adjuster didn’t account for modifications to the car, which makes the value go up.

Note: You must show evidence and documentation that you performed this work. That will prove the car is more valuable than the original offer. In some cases, the insurance company refuses to play fair. For those situations, you can take the case to a lawyer to fight for better compensation. If you have documentation and proof, you have a right to fight an unfair settlement.

 

How Do They Pay for a Total Loss?

The insurance company will reimburse you for the ACV, which uses the same metric when determining whether a car is a total loss. This metric accounts for the wear and tear and age of the vehicle. Multiple factors will influence how much they pay you. For those who drive leased vehicles, we recommend that they take out a gap insurance policy. This will cover them in the event that the car gets totaled. Otherwise, they could total the car, and they’d still be on the hook for monthly payments.

Conclusion

At Elmer’s Auto Body, we have seen this process play out over and over for over 70 years. We serve the community in South Jersey and have operated as a family-owned business for all of that time. We wish to make your life easier, more convenient, and faster. If you’d like to learn more, please call us at (856) 218-0202.

5 Most Common Causes Of Auto Collisions And How To Avoid Them

5 Most Common Causes Of Auto Collisions And How To Avoid Them

In the United States, car collisions are an unfortunate but common occurrence. American roadways are constantly plagued with minor bumps and crashes caused by a number of reasons. While some accidents may end up being minor, there are some that end up being catastrophic. Obviously, you want to do your best to avoid such events. Knowing the five most common causes of auto collisions and how to avoid them may one day come in handy.

 

1. Distracted Driving

Ever since the advent of mobile phones and texting, more and more people have fallen sway to distracted driving. Even if you are a conscientious driver, you could be hit by someone who is driving distracted. But what is distracted driving? It involves any of the following actions:

  • Checking your appearance in a mirror
  • Changing radio stations
  • Eating or drinking
  • Texting
  • Looking at someone in the passenger seat
  • Swatting at your children in the backseat
  • Becoming distracted by someone else on the roadway

To avoid distracted driving, it is important to avoid such distractions. Do not drive when you are tired, make use of hands-free cell phone devices like a Bluetooth speaker clip, avoid multitasking, and let passengers navigate for you.

 

2. Excessive Speeds

Yes, it may be tempting to speed down a highway, especially when you are running late to work, but excessive speeds make your car much harder to control. In the event something unforeseen or unexpected happens, such as a car suddenly switching lanes in front of you or an animal darting across the road, you could lose control. You also may not have enough time to react and brake, which could cause an impact.

Avoiding driving over the speed limit is easy. You just have to slow down. Observe the speed limit and stick within that range. You may even consider utilizing your vehicle’s cruise control to avoid accidentally accelerating during a long drive. Furthermore, if you are speeding because you are behind schedule, consider planning around traffic and leaving for your destination a little earlier.

 

3. Poor Driving Weather

There are a number of weather conditions that make the roads more dangerous than usual. Wind, rain, fog, snow, ice, hail…it’s all possible. Wind can blow your car sideways or cause debris to gather in the road. Ice and snow can cause skidding and sliding. Even wet conditions make the surface of the road more slick than usual. Unfortunately, you cannot control the weather. It can also be hard to predict what will happen.

What you can do to avoid accidents caused by inclement weather is drive more carefully. Avoid becoming distracted. If possible, go below the speed limit and put distance between yourself and others on the road. Stay away from any clusters of traffic that may force you to slam on the brakes or jerk the steering wheel. Lastly, if the road is extra dangerous, consider pulling over and waiting out the worst of the weather or calling for assistance.

 

4. Chaos at Intersections

Who hasn’t gotten flustered at a 4-way stop? Intersections, whether they have traffic lights or not, can be harrowing. Sometimes it is not clear who should go first. Then there are instances where people cut in front of you or rush to make a turn. It is not uncommon for people to side-swipe one another, particularly when one person is making a left at the same time another car is trying to make a right into the same lane.

Also, if you live somewhere with a lot of truck traffic, avoid pulling up too far past the line. Give the trucks space to turn and maneuver. Far too many people get the front end of their cars swiped by trailers.

In order to avoid intersection bedlam, it is recommended that you avoid running through yellow lights about to turn red and to always come to a complete stop at 4-ways. Do not do a rolling stop. Use hand signals to others, if need be, to signal your intention.

 

5. Drunk Driving

Far too many die each year because they or someone else decided to get behind the wheel of a vehicle when intoxicated or impaired. Drunk driving kills people and totals vehicles. Many substances, including alcohol and medications, can make judging speed and distance incredibly difficult. Some people even fall asleep behind the wheel.

Do not consider driving if you plan on drinking or using another substance. Arrange for a designated driver or use Uber or Lyft to get to your location and then bring you home. Stay at a friend’s house and give them your keys. Rest assured, they would rather see you on their couch in the morning than receive a call that you died while driving home from their party.

 

Get Your Collision Damage Repaired at Elmer’s Auto Body

Now that you are familiar with the top 5 most common causes of auto collisions and how to avoid them, it is time to commit to being a better driver. With more people aware of the danger, the roads may be safer. If you have experienced an auto collision, turn to Elmer’s Auto Body for assistance. Our amazing team of highly trained technicians will get your vehicle back to its undamaged condition. Give us a call today to learn more about our services or to book an appointment at one of our locations.

Minimizing Vehicle Depreciation After An Accident

Minimizing Vehicle Depreciation After An Accident

When your vehicle has been involved in an accident, there is little doubt that its value will be reduced. Any accident that is serious enough to report will surely reduce the value to some extent. Even if you have it repaired and the shop does a flawless job, there will still be some reduction in your vehicle’s overall value. That being said, there are ways to reduce and minimize the depreciation of your vehicle’s value.

 

Don’t Try To Cover It Up

You might be thinking that you can simply refrain from reporting the accident to your insurance company or any other relevant parties. If you are talking about a very minor accident, concealing the accident might be possible, but it is hardly ethical. Besides, any reputable repair shop will make a record of the repairs. That record will become part of a Carfax report that anyone can obtain, and that isn’t the only way for a potential buyer to uncover your deception. A repair shop that doesn’t make such reports is likely not going to do a good job, so you really shouldn’t try to cover up a significant accident.

 

Get The Damage Repaired

The most obvious way to reduce the vehicle’s value loss is to get the issue fixed. More importantly, it needs to be fixed correctly. That means restoring your car to its pre-collision state. This is another good reason to avoid low-level repair shops. Yes, they will probably charge you less, but they cannot deliver the same quality of work. A competent repair job will not completely eliminate your car’s loss of value, but it will certainly reduce those losses significantly.

 

Make Sure They Use OEM Parts

As we said, you have to get your vehicle restored to its original state. Doing otherwise will probably reduce your car’s value, and will probably void the warranty. That means no aftermarket parts or used parts. Once again, remember that those service records can be checked by anyone who cares enough to look them up. Thus, if you use substandard parts or the wrong parts, you will be shooting yourself in the foot. You might save a few bucks in the short term, but you will greatly decrease the value of your car.

OEM stands for “Original Equipment Manufacturer,” and it is a label that is placed on machine parts of many sorts. Those three letters indicate that the part has been made by the manufacturer of the vehicle or someone they have licensed to produce parts. The OEM designation basically just means that you are getting a new part that is identical to the original one.

 

Consider Filing A Diminished Value Claim

Depending on the circumstances of your accident, you might be able to file a diminished value claim with your insurance company. This means that you will be compensated financially for your losses. So, let’s say your car was worth $8,000 before the accident, and then its value was reduced by half due to the damage. You would be able to recover that $4000 as a direct cash payment, but only if your claim is approved. So, even if you can’t necessarily stop your vehicle from depreciating in value, you can at least recoup your losses.

 

Every State Has Different Laws

There are laws that relate to these claims, and they vary from state to state. And so, the first thing you should do is look up the relevant laws for your state. This website might be a good place to begin. However, there are certain universal requirements. So, when should you file for a diminished value claim? Here are some things to consider:

  • If you were judged to be at fault, you will not be able to file the claim
  • Every state has a statute of limitations, and the claim must be filed within this period to be considered
  • If your vehicle was damaged by a random mishap like a falling tree branch, you probably won’t be approved
  • If your vehicle already had a lot of wear and tear, its value might be so low that the claim isn’t worth the trouble
  • If the other driver did not have car insurance, it could make you ineligible for the claim

 

Research And Documentation

If you want your claim to be approved, it pays to have as much knowledge and documentation as possible. You will definitely want pictures of your vehicle, showing its condition both before and after the accident. For the “before” pictures, use the most recent pictures of your vehicle that you can find. A receipt from the purchase of your car will also be helpful, and you should also have your service records handy. This is why you should always keep service records, by the way. The rules vary, so call your insurance company and ask about the types of documentation that they require.

 

Conclusion

Unless you plan to drive your car until the wheels fall off, resale value matters. If you want your vehicle to maintain a good resale value, it pays to follow all of these steps after an auto accident. It is also highly essential to choose the right shop, so ask yourself: “Where can I find the best auto body shop near me?” If you live in southern New Jersey or the surrounding areas, we can give you the correct answer. Just call Elmer’s Auto Body at (856) 218-0202.

Can Auto Body Repair Void Your Car Warranty?

When you have been in a significant auto accident (or even a minor one), you are likely to need collision repair. Like many people, you may wonder if those collision repairs might void your warranty. This is a reasonable concern, as your vehicle’s warranty can be very important. However, the good news is that most collision repairs will not void your warranty. There are certain circumstances, however, in which a warranty can be voided by the collision itself. Let’s discuss this important subject in a little more detail.

 

If The Vehicle Is Totaled

Let’s start with the worst-case scenario. If you are dealing with a vehicle that has been damaged beyond repair, it will probably be declared as “totaled.” This will obviously void any warranty on the vehicle. When we say “damaged beyond repair,” we mean that the vehicle cannot be restored to its original state. For instance, a car with a twisted frame is usually not salvageable and will therefore be totaled.

 

Make Sure The Repair Shop Is Licensed

One thing you need to understand is that your warranty is an agreement between you and the company that made your vehicle. So, if your insurance company tries to pressure you into using a particular repair shop, be aware that they cannot force you. You always have the choice to go with a different shop/mechanic. In most states, that right is protected by law. That being said, you do need to make sure that your chosen shop and/or mechanic is certified by your auto company. So, if your car is a Nissan, you will need people who have been certified by Nissan to work on their vehicles. Otherwise, you will most certainly void the warranty. Having the work done by non-certified people will automatically void any vehicle warranty, so make sure you don’t do that.

Elmers Auto Body has the following Certifications:

 

Make Sure The Repair Shop Is Licensed

Keep Everything Original

A vehicle’s warranty is meant to cover the vehicle in its original state. That means any parts that are replaced must be replaced with identical ones. This means using only parts that meet OEM (Original Equipment Manufacturer) specifications. So, if you’ve been waiting for a chance to add a spoiler to your trunk or something like that, this isn’t the time to do so. Any non-OEM parts will automatically void the warranty. Thus, make sure you do not use aftermarket parts of any sort.

 

Be Aware That Warranties Are Subject To Appeal

If your warranty is declared void by your automaker (or anyone else), you do have every right to dispute that status. For instance, if a particular repair shop insists that your car is beyond repair and you do not agree, you would have reasonable grounds for an appeal. Of course, you do need to have reasonable grounds if you expect that appeal to go anywhere, so make sure you can demonstrate that the terms of the warranty were not actually violated.

 

Other Things That Can Void A Warranty

With all this talk about vehicle warranties, we might as well discuss some of the other things that can potentially render them null and void. First of all, willful abuse or misuse of the vehicle will pretty much always cancel the warranty. Things like racing, stunts, or deliberate destruction would fall into this category. Naturally, you can’t just enter your car in a demolition derby and then expect the automaker to cover the damages. Basically, any deliberate act by the owner that causes damage to the vehicle will void the warranty. This includes accidental damage like putting diesel fuel in a non-diesel engine or putting brake fluid where the antifreeze should go. No auto manufacturer wants to be held liable for someone else’s mistake. Environmental damage is also not covered. Some policies traditionally referred to these things as “acts of god.” Basically, no standard insurance policy will cover things like flood, wildfire, hail, or earthquake damage. Those require a separate policy. Also, if the odometer of the vehicle has been altered or tampered with in any way, that will certainly void the warranty. Such an act is also illegal under most circumstances. Failure to maintain a vehicle will also void the warranty, but only if the neglect is severe enough to cause permanent damage to the vehicle. This is why you should always keep those service receipts for any vehicle that is under warranty. Those receipts allow you to demonstrate that you have properly maintained your vehicle.

 

Conclusion

As we said, most collision repair jobs will not void your warranty. There are basically three aspects of a collision repair job that can potentially void that warranty:

  • The vehicle is declared a total loss
  • The use of non-OEM parts
  • The use of non-certified repair shops

So, just avoid these three things and you should be fine. From there, you just need to find a certified and reputable auto body shop near you. But you might be asking, “where can I find an auto body shop near me?” If you live in southern New Jersey or the surrounding area, the answer is not hard to find. Simply call Elmer’s Auto Body at (856) 218-0202 and ask about our highly-regarded collision repair services. We have been serving the people of South Jersey for over 70 years and we would be happy to serve you as well.

 

 

Getting Your Car “Un-Totaled” So It Can Be Repaired

Getting Your Car "Un-Totaled" So It Can Be Repaired

After you have been in an accident, the insurance company could decide to total your vehicle. While you may think you cannot get it repaired, you could be able to persuade the insurance company to “un-total” your vehicle. Otherwise, you cannot get the car fixed at your local auto body shop with that designation. Here are a few tips to get that vehicle un-totaled from the insurance company.

 

What Is Considered a Totaled Car?

When a vehicle has a high cost of repair that exceeds its value, it is considered a total loss. The insurance company often decides it is not feasible to repair the vehicle.

For example, if your car was worth $3,000 before the accident, and the estimate is over that amount, the insurance company could “total” your vehicle, meaning it is a complete loss.

If you want to repair your vehicle, you could run into issues. The insurance company is often required to register it as a loss. You might be issued a salvage title or certificate. With that, it cannot be registered, sold, or driven without repairs. Even then, finding an auto body shop that will fix these vehicles will be challenging since it could be a liability for them.

 

What Happens After a Vehicle Is Declared a Total Loss?

After the insurance company has deemed the car a total loss, you will be sent a check for the remaining value of your vehicle. While some people will purchase a used or new car, some owners are not ready to get rid of their vehicle. In some cases, you could dispute the claim. However, the burden of proof is on the owner, who must show evidence that the vehicle has a higher value or that the repairs are not too costly. What can the owner do to un-total a car? There are several ways to get the insurance company to change its mind.

First, the vehicle owner should talk to an auto body mechanic. In many cases, they will take a look at the car and provide an estimate for the damage. They will break down the hourly labor price and the time involved in fixing the damaged parts. Many auto body specialists will tell you whether you can repair the vehicle or if it is ready for the scrap yard.

Unfortunately, the auto body shop cannot repair some vehicles to working condition. Remember that you can get a second estimate for your vehicle, especially if you feel the decision to total the vehicle is incorrect. If you can prove the vehicle has more value over the cost of repair, then the insurance company may change its decision.

When you talk to a reputable auto body mechanic, they can give you an opinion on the vehicle. Some body damage looks unfixable, but the auto body shop can restore the vehicle back to its pre-accident condition with the right mechanic and tools. If you successfully overturn the “total” decision, you will get the repairs completed like a regular insurance claim. Take the estimate and send it to a trusted repair shop for the work.

 

Keeping a Damage Vehicle

You can keep the car if you do not challenge the insurance company’s decision to total the vehicle. The insurance company will pay for the vehicle’s remaining value, but they could subtract the deductible and salvage value.

Even if you want to un-total your vehicle, remember that safety should be your top concern. Any reputable auto body shop will repair a vehicle that is in safe working order. Sometimes, the damage is too severe, and the vehicle needs to be scrapped. However, some insurance companies are known to be overzealous, totaling a car for minor repairs. If the damage is just cosmetic, you can fix the vehicle for a small repair cost.

Yes, there are times when you can un-total your vehicle, fix the damage, and get back on the road. Once the insurance company agrees to un-total your vehicle, make sure to take it to a professional and reputable auto body shop to complete those repairs.

 

Untotal Your Vehicle

Getting the insurance company to change its decision about your vehicle can be challenging. If you want to un-total the vehicle, you need to determine the damage to the car, the severity of the issues, the location of the damage, and the condition of your vehicle. Some vehicles have extensive damage, and fixing the cars may not be feasible. However, there are other times when the insurance company does not want to pay for a minor repair. You can get them to reverse their decisions with documentation and a professional auto body technician’s estimate.

 

Find an Auto Body Shop Near Me

If you need help to un-total your vehicle, you must talk to a reputable auto body repair shop. At Elmer’s Auto Body, our technicians have the experience to inspect your vehicle and determine the costs of the repairs. We will work with you to give you an accurate estimate so you can reach out to your insurance company. In some cases, we can send the estimate right to the insurance company, helping reduce some of the frustration of the process. When it comes time to get those repairs completed, make sure to contact our shop. We are a family-owned auto body shop that has been serving the community for the past 70 years. Schedule a consultation by calling (856) 218-0202.

Protect Your Honda With Certified Collision Repair

Protect Your Honda With Certified Collision Repair

Honda owners know that these vehicles are some of the most reliable cars on the road. They are long-lasting vehicles made for everyday driving. In many cases, it is not uncommon to have a Honda performing for years without any major issues. When you need a repair, you will want to protect your vehicle by taking it to a Honda-certified collision repair shop.

 

What You Need To Know About Honda-Certified Collision Repairs

Honda has made a recommendation that all its vehicles are repaired by auto body shops and technicians certified to perform Honda repairs. If you have been involved in an accident, it is crucial to take it to a reputable and certified repair shop. These vehicles have their own advanced safety systems, parts, and technology that only a certified technician should handle. When you choose a Certified Honda collision repair shop, these professionals know how to best repair your vehicle.

Honda is committed to safety and wants to ensure that all repairs are made according to its specifications. With the Honda ProFirst Collision Repair program, you are assured that every technician has the right equipment, skills, training, and tools to repair your vehicle safely. Honda offers ongoing training so that your auto body repair team stays up to date on the latest changes that could affect the performance and safety of the vehicle.

Some of the areas that technicians receive specialized training include:

  • On-board safety features
  • Advanced body materials
  • Collision avoidance systems

When you bring your Honda vehicle to a certified shop, you will have some peace of mind that they will only use Genuine Honda parts on your vehicle. With these qualified repairs, you can keep and maintain your original manufacturer’s warranty even after an accident.

There are many reasons why you should choose original equipment manufacturer (OEM) parts. These parts are guaranteed to meet Honda’s standards for appearance, safety, and fitment, meaning these parts will maintain the structural integrity of your Honda vehicle as designed by the company’s engineers.

Additionally, a Honda-certified collision repair shop offers technicians unlimited access to repair guidelines and information exclusively from the manufacturer. They can use all the proper tools and equipment to match the specifications of these vehicles. Plus, the technicians and shops must be I-CAR Gold Certified to complete a repair on your vehicle.


Requirements of Honda’s Collision Repair Certification Program

Most vehicle manufacturers have strict requirements for repairs. With the ProFirst program, all shops and technicians must meet stringent standards to be certified to handle collision repair. With these standards, Honda can ensure that the repairs are completed to their specifications. First, any shop that wants to be certified will need to be an I-CAR Gold Class, Medallion, or VeriFact VQ shop.

Along with that, the technicians will take specific training that is designed and administered through the I-CAR program. These details are specific to the Honda line of vehicles. This training is required for anyone who takes on the roles of a structural technician, nonstructural technician, or estimator. Every shop must have one technician who completes these hands-on training programs.

All certified auto body shops will need to maintain the proper tools, equipment, and technology from Honda. With that, these professionals have committed to repairing your Honda vehicle to factory specifications by following the manufacturer’s safety and security protocols. Also, all auto body shops must use genuine parts and maintain the facility standards to Honda’s specifications.

Honda also wants to ensure that all shops meet their standards for customer service. With that, Honda requires the shop to have a full inspection by an independent third-party auditor. These auto body shops also need to maintain a customer contact program so that their customers know their certifications.

 

Get a Repair from a Honda-Certified Shop

When you have been in an accident, you want to avoid taking a chance with an unauthorized shop, especially if you want to maintain the appearance and warranty of your vehicle. A certified collision repair team has the skills and training to deliver the highest level of service to your vehicle. As a result, these technicians will only use authorized parts and tools to repair the car according to Honda’s standards.

 

Reach Out To Elmer’s Auto Body

You don’t want to leave your vehicle at any repair shop. These collision repairs must be handled by professionals who understand all of Honda’s safety features and systems, using only OEM parts and equipment.

With our experienced technicians, we will restore the vehicle back to its original factory finish. We understand that repairing a car is more than a cosmetic fix. You want your Honda repaired back to the vehicle’s pre-accident condition.

We stand behind our work and uphold our reputation as a Honda-certified collision repair shop. You can guarantee to have the highest quality repair work completed on your vehicle. Our shop will even help with your insurance claim, making the collision repair process easier for you.

Whether you have major collision damage or a small fender bender, you will want to get it fixed right the first time. Our auto body shop ensures your complete satisfaction with any repair. Hondas are durable vehicles that will last for many years. When it comes time to get your vehicle fixed, take it to a Honda-certified collision shop. Do you need an “auto body shop near me?” You can schedule a free estimate or repair by calling Elmer’s Auto Body at (856) 218-0202.