In article <XRednYF0j_70UpOiXTWJhw@comcast.com>,
Cory Dunkle <cadnews@comcast.net> wrote:

> That's a weird deifnition of totaled. I always thought totalled meant beat
> to hell and back again. Smashed up and most of the running gear is shot. I
> guess insurance companies think differently.

....

> No sense junking a perfectly good car because the insurance company
> considers it "totaled".

You don't have to junk it. Since you don't seem to be familiar with the
process, I'll explain it more thoroughly. The thing to keep in mind is that
"totaled" has everything to do with insurance; it's short for "declared a
total loss." If we didn't insure cars, we wouldn't use the word "totaled."

You have an old Civic, with a fair market value of $2,500. You get into
a relatively minor accident, or a hailstorm, or whatever. You carry
full insurance coverage on the car (not just liability) with a $250
deductible. You got to the body shop, and the repair estimate is, say,
$2,000 or higher.

Your insurance carrier decides to declare the car a total loss. That means
that they would rather pay you the value of the car (less your deductible)
than fix it. They'll do this even if the estimate is a little below the
value of the car, because there is the risk of finding more damage midway
through the repair. They cut you a check for $2,500 - $250 = $2,250.
(It is important to note here that the fair market value is open to
negotiation. They may try to lowball you, but you can try to convince them
that such cars sell for more than they're offering. They should also pay
the cost of sales tax and DMV fees.) They own the car (or what's left of
it), since they paid you for it.

However, you can buy it back from them, at relatively low cost (since it
has been damaged). Perhaps they will sell it back to you for $500. Now
you have your car, and $2,250 - $500 = $1,750. You will have to have the
car inspected for safety, and a salvage (or rebuilt) title will be issued.
This will make it harder to sell the car, but you do have $1,750 in your
pocket and a driveable car. Your insurance company will probably no longer
provide full coverage for the car, just liability.

Having a cheap car totaled for cosmetic damage often works out pretty well
for people without much money (college students, etc.) who just want a car
for basic transportation, don't care if it retains resale value, and don't
care how it looks.