 |
I've Totaled My Car? Now What?
Having an accident is frustrating enough, but when your car is totaled, that frustration can escalate quickly. In fact, JD Power and Associates reported in October 2011 that owners whose cars were totaled indicated they were less satisfied with their insurance company's claim process than those owners whose cars were repairable. Here's what to expect if your car is totaled.
Understanding the Value
There are several factors that determine the value of a totaled car, including its mileage, the options included, and the condition of the car at the time of the accident. Insurance companies also take into account the values of comparable vehicles being sold in the area.
Unfortunately, the condition of the car is an area where there are sometimes differing opinions between what the insurance company offers and what you think your car is worth. People often think that a car that is clean and well-kept should be considered average or above average by appraisers. But for a car to be in excellent condition from an insurance company's point of view, it has to be in near-showroom quality—a rarity.
Bridging the Gap
If you disagree with your insurance company's valuation, you can provide additional documentation to help support your position. For example, you might show that your vehicle had a high-end aftermarket stereo system, or maybe new tires were put on a few days before the accident. With the proper documentation, the insurance company may increase its offer.
Motoring On
There are a few other things you have to deal with when your car is totaled. You may, for example, need to rent a car. Be sure to check with your insurance carrier to determine if you have rental coverage. And there's the issue of buying a new car. The good news is that AAA.com has lots of tips to help you get back on your way.
 |
Get Financially Fit in the New Year
Resolve now to get in better financial shape this new year. Reduce expenses the way you'd reduce calorie intake, and work to increase savings like you'd work to increase aerobic endurance. It will take discipline, but you can do it!
The first step is to create a budget. Write down the year's planned expenses and subtract that from expected earnings. What's left can go toward your savings.
Next, put part of your savings in an emergency fund—typically enough for six months of expenses. Use high-yield deposit accounts like AAA Money Market or CD accounts. Definitely take advantage of employer matches in 401(k) plans, but also consider getting an IRA. AAA offers both traditional and Roth IRA CDs through our partnership with Discover Bank.
Just like with a personal fitness plan, your hard work will pay off, and your personal financial plan will be healthy, thriving and ready for a prosperous 2012.