Damage as a Result of an Accident
Major accidents and their effect on cars occur for a number of reasons, but excessive speed and poor road conditions are among the main reasons for people and vehicles being involved in accidents. Especially during winter months, when roads can be icy and freezing fog can make road conditions hazardous, many drivers neglect to reduce speed to accommodate the weather conditions.
New drivers often lack the confidence and driving skills to cope with poor weather conditions and in spring, when road surfaces are often cracked from the effects of severe temperature changes, many new drivers lose control of their vehicles when faced with poor road conditions.
The speed of both vehicles at the time of the major accident will largely determine how great the effect and damage on both or one vehicle will be. Even at 35 mph speed considerable damage can occur when a stationery object is hit by a car, such as driving into bollards or garden walls owing to careless and inattentive driving.
Financial Effect of Major Accidents with a Car
Most people have arranged the purchase of their car through a dealership and a car finance company. If a major accident’s effect on cars ends in a total write-off, insurer’s loss adjusters will investigate and determine how much their insurance company is prepared to pay out.
This will be paid directly to the party having paid out the money, namely your finance company, unless you paid for your car yourself. If the insurance money doesn’t cover the debt that is still outstanding against your car, you will have to pay off the remaining debt to the finance company yourself.
The loss adjuster will look at vehicle sales in your area to determine how much cars in a comparable condition are worth. If the insurers pay out more than is still owed to your finance company, they will send you a cheque for the difference, enabling you to put a deposit on a new car. The early pay-off of your loan will not adversely affect your credit rating by the way – only the non-payment of your debt to the finance company will do that.
Repair or Write Off
The extent and the nature of the damage a major accident causes will be a deciding factor in the determining the loss of value for your vehicle. Damage to the frame or structural damage effect the value of a car for more than any other kind of loss. The greater the damage, the larger the final repair bill will be and this will be reflected in the ratio determining the vehicle’s value, as the vehicle’s value prior to the major accident will be taken into account.
If a major accident effect on your car left you out of pocket, you may be able to file a diminished value claim against your insurance company, provided the driver of the other vehicle was not insured and you had previously arranged for a policy that included “uninsured motorist” coverage. Depending on the circumstances you may be able to file a claim against a third party insurer.
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