Following a car accident, you may be unsure of what to do with your vehicle. Depending on the extent of the damage, you may be stuck with a car that is simply not reparable.
Is it possible to sell your car for parts to recoup your loss, and if you do, how does that affect your insurance claim?
We have asked attorney, Alaina Sullivan, about retaining ownership of your car after a crash. Here is what she had to say:
Owner Retention
Just because your car is a total loss does not mean you cannot keep the vehicle and get a check from your insurance company. Many car owners choose to keep their car and sell it for parts.
This concept is otherwise known as owner retention. However, the first step is to figure out if your vehicle is totaled.
Is My Car Totaled?
A car is considered totaled when the cost of repairs is more than the estimated value of the car before the damage occurred. Determining whether a car is totaled essentially is a matter of cost of the car versus the value of the car.
If it is going to cost you more to repair your car than you would have gotten from selling it before the accident, your insurance company will more than likely consider your car a loss.
What Can I Do with My Totaled Car?
So, your car has been determined to be a total loss – what do you do? If you are financing your car, you will need to first worry about what to do with the lender. If the car has been totaled, normally the lender will need to be reimbursed first.
Whatever is left will then go to you. You can choose to keep the damaged car at this point, as all the lender will care about is receiving payment for the loan.
At this point, you can sell your car for parts.
Benefits to Selling Your Car for Parts
Several benefits exist to selling your car for parts once it is determined to be totaled. One of the reasons for this being the car will never be in as good of condition as it once was after it has been repaired. It can look like the same car, but it is possible it will never run the same way again.
Many times, damages will be discovered at a later date that were not discovered by the initial mechanic the first time the repairs are made.
That leaves the owner of the car shelling out more money to pay to repair the car, and once the insurance company believes the car is totaled, they will not want to waste money on a lost cause.
In addition, once a car is damaged, it loses significant value. Because cars are never in the same state as they were before the accident occurred, the car will have a lower resale value, even after repairs to the car.
Similarly, due to programs like Carfax, even if the owner does not disclose the fact that the car was in an accident, this fact can easily be discovered. That discovery could end up hurting you later if you try to hide it.
Once the car is sold for parts, you can attempt to get a newer car and avoid all of the headache of driving a car that has been damaged in the past and could potentially need future repairs depending on how the car was hit, as well as what type of damages that occurred from the collision.
Sometimes it is best to just write off your losses by selling what you do have and buying something completely new. Of course, you will need to pay off any loan you had on the car before taking this step. Be sure to speak with your insurance company and your lender to ensure this process goes smoothly.
Contact an Attorney Today
If you have been in a car accident and are considering selling your car for parts, it is recommended you contact an attorney to ask any questions you may have. A licensed personal injury attorney will be able to evaluate your case and determine if you have a claim against the other party’s insurance company.
To receive the compensation for your medical bills, property damages, and pain and suffering, you should speak with a personal injury attorney in your area today.
