Car accidents are inevitable events in modern life, and their consequences are different, from simple scratches to total damage to the cars involved. In this latter situation, which experts call total damage, the most affected are the car owners who often end up going through a frustrating and overwhelming experience. In order to properly manage the situation, it is mandatory to know exactly what total damage means, how insurance companies determine if a car is in such a serious condition that it falls into this category, and what is the impact of insurance policies In this regard.

In the following article you will find useful information about the definition and concept of total damage, about the evaluation criteria and methods for determining the situation, but also about the process of evaluating damaged vehicles and how insurance companies determine the total value. Also, you will discover here some practical tips for the correct management of accidents with total damage.

1. Total car damage – general information

The expression “total damage” is well known to all drivers, but not all of them understand it in the smallest details. Practically, if the car involved in an accident ends up in an extremely serious condition so that the repair costs are much higher than the value it had on the market before the event, then the insurance companies can cover it (depending on their own analyzes and internal policies) in this category.

1.1. Total damage – definition and concept

What does total car damage mean? A textbook definition regarding the state of total damage says that it is that situation in which the vehicle is considered too damaged to be repaired economically. This concept can be divided into two categories. The first refers to the total economic damage, which refers to the fact that the investment in repairing the car exceeds about 70-80 percent of its value. The second refers to total technical damage, that is, the car cannot be repaired safely or in accordance with technical standards, being badly damaged.

Car owners must understand this concept, otherwise they will not be able to manage the situation correctly and will not make informed decisions after the accident. Practically, if they know exactly what it is about, then they will know exactly what to expect, the compensation options they have and their rights in relation to the insurer. Lack of the necessary knowledge can lead to various problems.

1.2. What happens to the total damage – evaluation criteria and methods of determination

Among the criteria for evaluating the total damage are the cost of repairs in relation to the value of the vehicle, the value of the vehicle before the accident, the general condition, the state of wear and tear of the car, structural damage and safety.

The main criterion is the one that refers to the cost of repairs in relation to the price of the vehicle before the accident. The insurance company sets a percentage in this regard and if the investment exceeds about 70 or 80 percent, then the car is declared a total loss. To determine its value before the event produced, the following aspects will be taken into account:

• year of manufacture;
• brand;
• the model;
• mileage;
• general status;
• market value.

Another evaluation criterion is the one that refers to how well the car is maintained. If it looks good, is not very worn, then its value will be much higher than one in the opposite condition. Serious structural damage affects safety, and this can cause the insurance company to declare it a total loss, despite the fact that the price of repairs does not exceed the market value of the car.

In order to determine the state of total damage, there are different methods used by insurance companies:

• visual inspection;
• cost estimation;
• use of specialized software;
• local market analysis;
• analysis of car history.

Understanding all the evaluation criteria and the methods used by the insurance company to establish the state of total damage of the car is of great help to the owners who can understand in this way how the compensation is made and if they receive correct compensation from the insurer.

2. Car with total damage – the process of evaluating damaged vehicles

After the accident occurred, the owner is obliged to report the situation to the insurance company, and this will happen in the shortest possible time. The insurer inspects the damaged vehicle, estimates the repair costs and determines the amount of the total damage. All these processes are intended to ensure a correct evaluation of the car in order to obtain a correct compensation, in relation to the insurance that the owner has.

2.1. Evaluation of damaged vehicles to verify the state of total damage

In order to evaluate the damaged vehicle in order to determine the state of total damage, the steps below will be followed:

• First of all, an expert or an authorized evaluator will check and visually inspect the car to see what are the problems that arose after the event. In order to create a good report, he will also take some photos of the damages produced and note down each observed damage (damage to the bodywork, mechanical systems, interior, etc.);
• Secondly, he will make a cost estimate after the visual inspection. These costs are aimed at bringing the vehicle to its initial state (before the accident). These can include the value of the necessary spare parts, labor or other associated expenses;
• Thirdly, certain specialized software will be used to make accurate estimates. With their help, the repair costs can be quickly calculated and the current market values ​​can be analyzed;
• The company will analyze the local car market to determine the value of the car and compare it to other similar vehicles available for sale at that time;
• Last but not least, the car’s history will be taken into account, involving previous accidents, major repairs, maintenance, etc. If the vehicle had major accidents, then the market value will be lower.

The evaluator will fill out a document, practically a detailed report, in which various relevant information will be entered about the condition of the damaged car, but also about how much its repairs would cost and the arguments brought in view of the decision made for a total breakdown.

2.2. Total damage to the car – how to determine the level of compensation

The level of compensation is established by the insurer following the findings made by the evaluator. The value of the total damage is determined according to the market value of the car involved in the accident. How is it established? Basically, an evaluation is made based on the car evaluation guides, the local market analysis and the history of the car. In addition, other factors are added: brand, model, year of manufacture, mileage, technical condition.

As soon as the market value has been established, the deductions or depreciation will be deducted (these are established in the policy). In this way, the salvage value (remaining value) is obtained. If the car with total damage was obtained through loan or leasing, then the insurer deducts the remaining payment amounts from the total amount of compensation.

What happens to compensation when it comes to total damage? There are different compensation options that the insured can opt for:

• to receive a sum of money (the value of the vehicle after deductions);
• to accept another vehicle similar in value to the damaged one;
• to keep the damaged vehicle and receive an amount depending on the value of the wreckage.

2.3. Options for compensation in case of total car damage with RCA or CASCO

Compensation options may vary depending on the type of insurance the owner has. For people who wonder what total damage means in the RCA (Auto Civil Liability) policy, it is important to know that the compensation options are quite limited. To have the necessary security in this regard, vehicle owners can add to RCA insurance and a DPOV clause (indemnity for your own vehicle).

Thus, with its help, they will be able to benefit from compensation in case of total damage. However, it cannot be activated at any time, but only in certain situations where the car is destroyed by a vehicle caused by an uninsured or unknown driver and only under certain conditions mentioned in the policy. Basically, it is about a maximum amount specified in the policy or about one equivalent to the market value of the car before the accident, reduced by any applicable deduction.

If this clause does not exist, then the RCA policy only covers damages caused to third parties. The expenses will be borne by the owner, regardless of whether they are for repairs or those related to the replacement of the car. For this reason, before concluding this policy, it is advisable to ask for additional clarifications from the insurer, in this way the owner correctly evaluates the compensation options in case of total damage.

When it comes to CASCO policies, things change. These insurances offer several compensation options in case of total damage, among which can be mentioned:

• First of all, CASCO insurance comes with monetary compensation equivalent to the market value of the vehicle before the occurrence of a major event;
• Secondly, the owner can choose to replace the damaged vehicle with another similar one (taking into account the conditions specified in the policy). By similar vehicle is meant a car with the same make and the same type as the one that suffered from the accident and that meets the following conditions: the same body type, fuel, year of manufacture, number of doors and similar cylinder capacity;</li >
• You can also choose to keep the damaged car, besides adding a reduced amount that takes into account the value of the wreckage.

In case of total damage, the owner of the car involved in the accident must immediately notify the insurance company and present the documents to allow the assessment of the damage produced. An appraiser will determine whether or not it is a total loss, then the insurance company will determine the amount of the compensation.

3. Practical advice for the proper management of total damage accidents

The correct management of the situation in case of a total damage accident can become a reality if the car owner has all the necessary information to obtain the appropriate compensation. Thus, he must know what total damage is, how it is calculated, when he can receive such compensation, if the vehicle with total damage can still be registered, whether or not he can receive compensation in case of total damage to the car insured by RCA or with CASCO, as well as many other useful information.
Some tips and recommendations are very useful for an owner who goes through such an experience:

• If such an event takes place, it is imperative to keep a calm state and take shelter from possible incidents, which could endanger his life, property or the passengers. Calmness will give him the opportunity to make rational decisions;
• Immediately after the occurrence of the event, as soon as possible, the insurance company must be notified about the accident and the condition of the car. In this sense, it is recommended to have the number of the insurance policy at hand;
• Photography of the car is mandatory if the pictures can be taken safely. The Police report, accident outline, records (if they exist) will be kept;
• The insurance policy must be read carefully, so that the owner understands exactly what compensation options are available in case of total damage. If he has questions about the compensation received, it is good to ask them to the company, requesting the necessary clarifications;
• If a damaged car has been declared a total loss by the insurance company, but the owner wants to re-register it, then it is necessary to consider the following aspects: carrying out the mandatory repairs, passing through a rigorous technical inspection, obtaining a certificate of authenticity issued by RAR, presenting specific documents, re-registering the vehicle. Re-registration can be expensive for such a car, but it is possible in Romania.

In conclusion, in order to avoid the complications that could arise after such an event, it is important that vehicle owners know in detail all the information in the insurances they have concluded, whether it is RCA or CASCO. The efficient and correct settlement of compensation claims can become a reality with the help of a clear understanding of the process.