Know your rights as an insurer.

If the insurance company declare your vehicle as total loss

When an insurance company declares your car a total loss after an accident, it means the cost to repair the vehicle exceeds its current market value.

 

 However, this doesn’t necessarily mean you have to surrender your car completely. In many cases, you have the option to keep the vehicle by accepting a “salvage retention” or “buyback” arrangement.

 

 Essentially, the insurer will pay you the car’s actual cash value minus the estimated salvage value, allowing you to retain the damaged car. 

 

This option can be advantageous if you believe the car can be repaired affordably or if you intend to sell it for parts or to a salvage yard. Keep in mind that if you choose to keep the car, it will usually receive a salvage title, which affects its registration and resale potential, but it’s still a practical way to reclaim some value from your damaged vehicle rather than losing it entirely. 

 

Just be sure to carefully weigh the costs and benefits before deciding, and consult with your insurance company to understand all the implications.

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