How much can I expect to recover under my auto insurance if my car is totaled in Alabama?

It never feels as though you can be justly compensated when your car is totaled. Unfortunately, it is unlikely that you will be able to recover the purchase price of your vehicle if it is totaled. As soon as you drive off the lot, your car starts to depreciate. There are rules for how it works if your vehicle is totaled in Alabama. We at Robinson Insurance Group LLC can help you navigate the process and help get you back on the road as soon as possible.

What Does It Mean When a Car Is Totaled In Alabama?

A car is totaled when it is simply too impractical to repair it. Under Alabama law, a car is considered a total loss when the cost of the needed repairs added to the salvage value is equal to at least 75% of the car’s actual cash value. When a car has that much damage, it is reasonable to think that there are even more damages that you can find on first inspection. It is simply too expensive to fix it.

Actual Cash Value

The actual cash value of the car is how much your vehicle was worth before it was damaged. If you bought a car for $10,000 and someone totaled it on your way home, the actual cash value is probably about $9,000. Your car depreciates about 10% as soon as you drive it off the Alabama sales lot.

Schedule A Consultation Today

You may be able to recover the replacement value of your vehicle if you add new car replacement or gap insurance. If you would like to see how much protection you already have and discuss your options, please call Robinson Insurance Group today.