Category: Insurance

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.

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.

Auto Insurance: Comprehensive VS Collision Coverage

What is the difference between collision and comprehensive insurance? They might seem the same, but you can use them in different situations. You need to choose the right insurance policy for your vehicle. For that reason, it is essential to select the best one for your needs. Here is what you need to know about collision vs. comprehensive insurance coverage.

What Is Comprehensive Insurance?

Comprehensive insurance will pay for damages caused by things other than a vehicle accident. These accidents are often referred to as “acts of God or nature.” Accidents of this nature are considered out of your control, such as tree branches falling on your vehicle. Since you have no control over the branches falling on the car, that accident is covered under a comprehensive insurance policy.

Along with that, comprehensive coverage will pay for theft. These policies will cover the cost of replacing your car or fixing any of the damage. Comprehensive insurance covers other types of damage, such as fire, natural disasters, vandalism, animal damage, falling objects, and broken windshields.

Often, comprehensive insurance is subject to a deductible. You must pay that amount before any coverage kicks in to pay for the repairs. For most people, this is a $500 deductible. If you have windshield damage estimated at $900, you would have to pay $500 before any repair work can begin.

Why would you want to choose comprehensive coverage? One of the main benefits of comprehensive coverage is that it gives you peace of mind when you are away from the vehicle. By carrying comprehensive coverage, the policy will reimburse you if the car is stolen or damaged. However, in some cases, comprehensive insurance is not the best for minor damage. If you have a high deductible, your policy might not be beneficial for repairing your vehicle.

What Is Collision Insurance?

Collision coverage will pay for any damage that occurs as the result of a vehicle crash. These accidents can include a single-vehicle crash or a collision with another vehicle. There are some types of damages covered under collision insurance. Just like comprehensive insurance, this type of insurance also has a deductible. When you buy the policy, you will set the deductible amount. With a higher deductible, you will often have a more affordable premium.

A collision insurance policy will also have a few benefits. One main advantage is that you don’t have to pay high repair costs after a collision. If you cannot afford a high repair bill, this insurance will give you a little peace of mind. Collision insurance will pay for damages if you cannot find the other driver. When you have collision insurance, the repair process starts quickly. For those relying on the other driver to pay for the damage, you will have to wait to determine who was the at-fault driver.

When you file a claim with your insurance company, you will usually only deal with them. The other insurance company has less incentive to pay for your claim. In some cases, collision insurance can be used for a rental car, saving you a few dollars on that rental car insurance.

Can You Drop Comprehensive or Collision Insurance?

If the car’s value approaches the deductible costs or premiums, you may want to drop the collision or comprehensive insurance. For example, if the annual cost of your comprehensive insurance is $400 and the deductible is $600, you can save money by dropping a policy if the vehicle is worth less than $1,000. However, you still need to have insurance for your car. If you hit someone on the road or cause damage, you could be responsible for the damage and face other legal problems.

What Is the Difference Between Collision vs. Comprehensive?

Now that you know the basics of collision and comprehensive insurance policies, which one should you choose? The difference between a collision and a comprehensive policy is the driver’s control over the accident. What does that mean? Collision insurance will cover any event that is within the motorist’s control. For example, when another vehicle collides with the car, that is also covered with collision insurance. On the other hand, comprehensive coverage will fall under “acts of God or nature.” These accidents are totally out of your control, and they can include a heavy hailstorm, carjacking, or spooked deer.

Consider the impact of a severe storm. During the storm, you may face a few situations with your vehicle. For example, the high winds might cause a heavy branch to fall on your car. If you are driving, avoiding an object on the road could cause you to swerve, resulting in a crash. With the branch falling on your vehicle, you have no control over it. This type of damage will be reimbursed under your comprehensive policy. In the second scenario, you were driving the car and caused a crash, which is considered a collision. As a result, the collision insurance will pay for the damage.

Both of these accidents are common. For that reason, you need to know the difference between these types of damage. When you choose Elmer’s Auto Body, we will work with various insurance companies in New Jersey. Our technicians will complete an inspection to ensure the vehicle is restored to its pre-accident condition. You can count on our family-owned business to deliver exceptional customer service to you. We offer fast, convenient, and easy service for all collisions and repairs.

Need an “auto body shop near me?” Take a few minutes to schedule a consultation by calling (856) 218-0202.

What To Do After A Car Accident That’s Not Your Fault

When you’re involved in a car accident that you know was not your fault, it’s important to understand how to handle the situation. There are various steps to follow when you’re not responsible for an accident. You need to know how to protect yourself, how to receive fair compensation, and how to deal with any legal obligations that come because of an accident. Here are guidelines to follow.

What to Do After An Accident That Isn’t Your Fault

If you’re involved in an accident that you didn’t cause, there are guidelines as to what you should do. You want to:

Ensure Your Safety – After an accident, ensure your personal safety. The first thing you want to do is move your vehicle out of the road or highway and park it on the shoulder of the road or, if possible, a parking lot. Move the vehicle and put on the hazard lights to avoid being hit again. Check yourself and anyone else involved for personal injuries.
Contact the Police – In most states, if an accident occurs that causes injuries or death and an amount that exceeds $1,000 in damage, it’s mandatory to report the collision to the police. It’s also a good idea to call the police about a minor accident for documentation of the accident. The police will provide a report that relays information related to the accident, which includes the date and time of the accident, driver information, and anything else that applies to the collision. When you involve the police with an accident that wasn’t your fault, they can help you with evidence of the other driver’s liability. In fact, the police could be of help with citing the other driver for violations that show the accident was their fault, such as running a red light.
Do Not Admit Fault – Be careful what you say to others at the accident scene and the other driver. You do not want to say the wrong thing to the other driver, the police, your insurance company, or anyone at the scene. Do not admit fault in the collision and don’t express regrets to the other driver. They could take it as an admission of guilt. Be patient and wait for a full report on who was at fault in the collision.
Share Insurance Information – You’ll want to exchange insurance information with the driver of the other vehicle. You’ll also want to contact your insurance provider to file a claim, even if you weren’t at fault. Your insurance provider will help you with the claim process, including going against the other driver’s insurance carrier. You may receive immediate relief in payment for your losses while awaiting the completion of the claims process. Your insurance provider will also pursue reimbursement from the other driver’s insurance company.

What Information Do I Need to Know About The Accident?

You’ll need to know the location of the accident, as well as the full name, address, and phone number of the driver of the other vehicle. You also need to know their insurance company, insurance policy number, the color, make, and model of the vehicle that hit you, as well as their driver’s license number and the license plate number of their vehicle.

Besides these details, you also need to gather information at the accident scene as the more information you get, the better your case will be. It’s safe to say that when you get the information yourself, you can start the claims process much faster. Otherwise, you could wait several days for the report to be filed and available to you. Just because you weren’t at fault doesn’t mean your provider doesn’t need your information concerning the accident.

Try to get video, photographs, and any accounts from those who have witnessed the accident. Get witnesses’ contact information too, as you may need their accounts of the accident as well. Also, when you collect evidence from the scene and evaluate the damage, you can make a strong claim for liability against the other driver. If you require hospitalization after the accident, be sure and get a family member or friend to return to the scene of the accident to get as much information and evidence for you.

Whose Insurance Company Do I Call?

You’ll want to call your own insurance company first and inform them of the accident and explain that you want to file a claim. They’ll take your information and any evidence you’ve gotten together. This helps your insurance company fight against the other driver’s insurance company in the event they decide to file a claim against you.

Your insurance provider will want the details of the accident and will probably assign a collision repair shop once they give the authorization to approve your claim for repairs and any injuries. They’ll ask you to think about using reputable auto body shops in your area. It will be up to you to find one and get an estimate from an auto body shop near me.

Also, you’ll want to inform the insurance provider (insurance provider for the other driver) of the accident and tell them you’re filing a claim. You can’t automatically assume the other driver will report the accident.

Whatever your insurance covers, they still need the information you provide them with so they can deliberate with the other driver’s insurance company concerning the repair costs and any compensation for any injuries. When you file your claim with the other insurance company, be careful what you sign. You could sign for a lesser settlement or a declaration that relieves them of any liability.

Once your insurance company gives you the go-ahead in finding the right auto body shop to repair your damaged vehicle, you’ll want to consider who you should work with in the southern New Jersey area. Seriously consider Elmer’s Auto Body. We are a family-owned and operated shop and have been in business for 70 years. Our reputation is stellar and they provide excellent service to our customers. We will also make any collision work easy, convenient, and fast. Call us at (856) 218-0202.

Important Auto Insurance Terms Every Driver Needs To Know

When reviewing your current policy or looking for new coverage, you will encounter plenty of strange insurance terms. Some are simple, while others can be confusing. However, if you don’t understand these words, you might not select the right policy for your needs. Here are some of the most important auto insurance terms that every driver should know.

Deductible

This word is on every insurance policy. A deductible is the amount of money you need to pay before the insurance company covers the claim. These amounts can vary depending on your specific policy. If you have a high deductible, your premiums will be low. A low deductible means a higher premium. Your low monthly bill can be convenient, but it could mean a high repair cost when you need to file a claim.

Premium

Now you know about the deductible, you need to understand the premium. This is the amount of money you will pay monthly, bi-yearly, or yearly. In many cases, the words premium and rate are used interchangeably. Some companies do offer discounts for those customers who prepay the premium or enroll in an auto-pay program.

Bodily Injury Liability

When you have bodily injury liability, you are protected from those accidents that injure or kill another individual. The insurance company covers all legal fees and judgments against you. In the case of lost wages and medical expenses, this coverage takes care of them. However, this liability coverage does not cover you or other passengers in the vehicle. If you want those expenses covered, then you need personal injury protection.

Comprehensive Coverage

Vehicles can be damaged in a variety of ways. With that, you want to have comprehensive coverage if an event or object damages your car. For example, damage from hitting an animal or falling tree branches are covered. In many cases, theft, storm damage, and natural disasters are included in this coverage policy. This coverage is known by several other names, such as Other Than Collision (OTC) coverage and physical damage coverage.

Collision Coverage

With collision coverage, your insurance policy pays out any monetary damage if your car hits an object or another vehicle. In most cases, these policies only cover the cash value of your car. For those older cars, you might want to skip this coverage. Along with that, some states do not require this coverage, but your lender might make it a requirement.

Property Damage Coverage

If your vehicle damages another individual’s property or car, you will want property damage coverage. This policy can protect your assets from lawsuits that are related to the accident. However, keep in mind that many insurance companies do not offer this type of coverage since it can be expensive. In almost all states, a driver must carry a certain amount of car insurance for their vehicle. You might see meager rates, but remember that those policies could mean high bills if you are involved in an accident.

No-Fault Insurance

One type of insurance is known as no-fault insurance. With this coverage, your medical bills are covered after an accident, and they will be paid whether you are responsible for the accident or not. Some states require no-fault insurance to stop those expensive lawsuits resulting from an accident. In these states, drivers cannot sue the other unless there is a serious injury or damage.

Medical Payments Coverage

Unfortunately, some accidents are severe, and they can result in life-changing injuries or death. Medical payments coverage pays for funeral costs or medical bills as a result of an accident. You and your vehicle’s passengers are protected. This type of coverage also protects you and your family members if they are hurt while riding a bike or walking down the street. You could be required to purchase a medical payment plan for those who live in a no-fault state.

Personal Injury Protection

If you are injured in an accident, you might want to consider personal injury protection. With this insurance, your medical expenses, lost wages, treatment costs, child care payments, and funeral bills are covered. Depending on your state, your passengers could be protected as well. Some policies will cover those pedestrian injuries. Like medical payments coverage, this type of insurance could be a requirement in a no-fault state.

Uninsured Motorist Coverage

While insurance is required by law in most states, some drivers fail to adhere to these requirements. In those cases, you might want to choose an uninsured motorist (UM) coverage policy. This plan will protect you from that uninsured driver. When you are involved in an accident with this type of driver, and you don’t have UM coverage, you have to pay those medical bills and repair costs out of your pocket. In many states, there is a minimum amount of uninsured motorist coverage that you must carry.

Underinsured Motorist Coverage

Another type of insurance is underinsured motorist coverage. This policy protects you if the other driver has liability coverage but not enough to cover your repair or medical bills. Some states do require this policy and uninsured motorist coverage to protect you and the vehicle.

Gap Insurance

If you have a leased or financed vehicle, it might be time to consider gap insurance. You might not understand the importance of gap insurance. When you drive your car off the lot, it starts to lose value. If that vehicle is totaled a short time later, you will still owe the full amount of your car, but you might only get the Blue Book value of your vehicle from the insurance company. This type of insurance can save you a substantial amount of money.

Need an Auto Body Shop Near Me?

Now that you know the basic language of insurance, you can fix your damaged vehicle. At Elmer’s Auto Body, we have the experience and trained technicians to restore your car’s appearance. We will work with the insurance company to get your ride back on the road. If you want to schedule a consultation, please give us a call at (856) 218-0202.

Protect Your Nissan With Certified Collision Repair

It’s never pleasant to think about the possibility of a vehicle collision. These kinds of things can do a lot of damage, both to the vehicles themselves and to the people riding inside of them. Although we are not able to help with that second part, we can certainly help you to protect your Nissan with certified collision repair. Anything less is simply not good enough. Let’s talk a little bit about why this certification is so important when repairing a Nissan vehicle.

Why You Should Stick With A Certified Collision Specialist

There are a number of good reasons for sticking with a certified shop. First and foremost, let’s talk about the warranty issue. Nissan vehicle warranties will pretty much always stipulate that only certified mechanics can work on these products. Otherwise, the terms of the warranty will be considered null and void. This is a big problem because, if you find a defect or some other manufacturer problem with your vehicle, those non-certified repairs will cause your claim to be automatically denied.

There is also the issue of using the right parts. Most collision repairs will require you to purchase a new part or two, and some may require more than that. This is where many non-certified and low-standard body shops will see an opportunity to scam you. By charging you for a premium part and ordering a cheap aftermarket piece of junk, they can pocket the difference and make some extra cash from you. Needless to say, reputable and certified shops are not known for that sort of behavior. You should always make sure that your body shop uses OEM parts with lifetime warranties for each one.

Finally, we have the problems that come from specialized tools. Many vehicles will require specialized proprietary tools for proper repair jobs, and these tools can be very expensive. In fact, some of them can’t even be sold to non-certified shops and mechanics at all! However, certified mechanics and shops can get these tools at a lower cost, making it much more practical to buy them. Thus, going with a certified shop will ensure that only the correct and approved tools are used on your vehicle.

Nissan Vehicles Require More Specialized Work Than Most

There are actually some mechanics that will refuse to work on Nissan vehicles, as surprising as that might be. This is because they tend to use a lot more advanced engineering in their products and this can be a real problem for substandard mechanics. However, any shop that turns away your Nissan is probably not worth visiting in the first place.

One good example of this superior technology is Nissan’s “Safety Shield 360” system. By using a combination of sensors, cameras, radar, and sonar, the car can basically sense the presence of any other vehicle that gets too close. If such a thing happens, it will automatically slow or stop the vehicle with no input from the driver. If your car is equipped with this option, you must definitely avoid any shop that isn’t completely certified by Nissan. Just think about this: What will a low-tier mechanic do if he is forced to work on a radar or sonar system? Chances are, they won’t have a clue.

How To Recognize A Certified Nissan Collision Center

If you are trying to find the best Nissan mechanic, it pays to shop around and look at the details. For one thing, you should ask to see credentials and certs long before they ever touch your vehicle. Any shop that is hesitant or unwilling to show these credentials should be crossed off the list immediately. Remember that you are a paying customer and you have a right to know what kind of service you are buying.

That is the best way to begin, but you shouldn’t stop there. For instance, Nissan’s standards require that a Nissan-certified collision repair facility should be clean, well-organized, and professional-looking. If the place looks like your neighbor’s dirty garage, that isn’t a good sign at all.

You can also ask for some paperwork relating to their last inspection. Nissan, working through various third-party companies, will carry out periodic inspections of every shop in the Nissan-certified collision network. If they aren’t up to the standards, their licenses and certifications can be pulled. Thus, you should ask to see the results of their last inspection, as that will really tell the tale better than anything else.

Be Careful About Insurance Company Recommendations

In many cases, insurance companies will want their policyholders to visit one of their approved shops. However, this can be a bad idea in some cases. Your insurance company doesn’t determine the terms of your warranty and they are not necessarily interested in giving you the best quality. They recommend certain shops for financial and liability reasons, so those shops may not be fully approved by Nissan. The important thing here is to ask plenty of questions and vet the mechanic just like you would do with any other.

Post-Repair Scanning

Nissan requires post-repair scanning whenever one of their vehicles is repaired. This is something you should ask about, as it is another good way to recognize a high-quality body shop. If they are skimping out on the scan, who knows what else they might be forgetting?

Conclusion

If you want to get the best collision repairs for your Nissan, you might be asking yourself: “Where can I find the best auto body shop near me?” For those of you in South Jersey (or any adjacent area), Elmer’s Auto Body is the answer you seek. We are properly certified in all areas of Nissan service and we aren’t shy about proving that fact to all potential customers. You have every right to see our credentials, so we will never be offended at that prospect. To find out more (or to employ our expert services), feel free to call us at (856) 218-0202.