Monthly Archives: March 2025

Will Auto Insurance Always Total a Car After a Major Accident?

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After you’ve had a major accident with your car and you’ve filed a claim, your insurance company will make an estimation that may mean that your car will be totaled. However, car insurance companies don’t just automatically total a car after a major accident, as your insurance representative at Pizano Insurance serving Wayzata, MN will tell you. Much depends on the damage that would need to be repaired versus the car’s value. Here is some important information to help you understand the process.

What Does it Mean to Total a Car?

In essence, the phrase "total a car" refers to a process in which the car’s value is deemed to be less than the cost to repair it to a condition where it can be safely driven again. The auto insurance company would pay the lesser of the two amounts. If the car’s value exceeds the repair estimates, it is "totaled."

How Insurers Determine a Total Loss

An insurance company declares a car a total loss when the cost to repair it exceeds a certain percentage of its actual cash value (ACV). If repairs cost more than this threshold, the insurer will consider the vehicle totaled and offer a settlement based on its pre-accident market value. Factors that influence this insurance include:

  • Pre-accident value
  • Frame and structural damage
  • Salvage value

As you can see, a major accident doesn’t always mean the auto insurance company will total the car. For help with your claims process and to get all your questions answered, contact your insurance representative at Pizano Insurance serving Wayzata, MN after any accident that you may be involved in with your car.

Understanding Liability Coverage: What are the benefits of having it on my home insurance policy?

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Liability coverage on an insurance policy, mainly a homeowner’s, covers "the other guy." Personal liability never covers you. However, it is essential because it protects you financially if you are found legally responsible for property damage or bodily injury of someone else. This includes neighbors or visitors that you welcome onto your property. At Pizano Insurance in Wayzata, MN, we want you to be "in the know" regarding your homeowner coverages and the benefits you get with your policy.

Understanding Liability Coverage

Homeowner liability applies when someone slips and falls on your slick driveway, falls down your stairs, gets bitten by your dog, or a fire on your property damages your neighbor’s property. You, as the policyholder and any household members are covered by the policy.

Regarding policy limits, most homeowners’ policies generally start with $100,000 of liability coverage. However, you can increase those limits to an amount you are comfortable with.

Liability coverage is crucial because it protects you and your assets if you are sued for injury to another person or damage to their property. Home insurance liability coverage will typically go toward medical bills for the other party and legal fees and court costs if you are sued for damages.

We’re Here to Assist!

Personal liability coverage will provide you and your family with financial protection. Most homeowners don’t have the funds to pay thousands in medical bills or property damage to another person. That’s why we’re here to help you find an affordable home insurance plan that is there when you need it the most. Call us today at Pizano Insurance in Wayzata, MN, at (952) 473-1880. You’ll see that we’re the right company for you.