Did you know that when your car is involved in an accident it's value diminishes according to the extent of the damage done? The more damage, the more value is lost. Even a small fender bender can cost you hundreds of dollars when you decide to sell or trade your car. Major car repairs will take away from your car's value by thousands. Many people try to repair their own cars after an accident. While this may save you money now, in the long run, it may cost you more than you think.

A well trained eye can pick up the smallest details when you show your car to potential buyers. Even before you tell them it's been in an accident, they'll know. Trying to hide the fact will only take away more value on the car you want to trade or sell. Sometimes the damage is so severe that your insurance company will consider your car to be a total loss. In this case, everyone thinks the car is worthless. Everyone except the local junkyard. They purchase your car for pennies on the dollar. After that, the car either sits in the yard to be used for parts or goes into the auto shop to be reconstructed.

When the car is reconstructed, it must go through a strict inspection. If it passes the inspection, it is given a new title. This title is referred to as an "R" title. This allows everyone to know that the car has been in a bad accident. An "R" title car is safe to drive but alot of people will not buy them because of the fear that the reconstruction was not done properly. This type of title alone will diminish the value of the car by thousands of dollars. An example could be as follows....two 1997 Ford Mustangs at the same dealership. Same motor and transmission. Very similar in options and equipment.

One Mustang has a normal standard title and the other has an "R" title. Both cars appear to be in very good condition. The Mustang with the normal title has a price tag of $5295.00 while the Mustang with the "R" title has a price tag of $3295.00. The "R" title lets potential buyers know the car has been badly damaged. Most people will opt for the car with the normal title even though it costs $2000.00 more. Ultimately, any accident or repair to your car diminishes it's value. The amount of decline is determined by the amount of damage.

If your car has been totaled in accident you may be entitled to have your sales tax fee reimbursed. Vehicle sales tax is often charged by many states and municipalities when you first purchase and or register your vehicle. The tax value is usually determined on a sliding scale. The scale takes into account the assessed value of the vehicle and the area that you live in order to determine the amount of tax.

Many states have passed legislation requiring Auto insurance companies to reimburse sales tax on vehicles that are considered a total loss. Currently 32 states have taken this action and others are likely to follow suit. Despite this legislation it is important to know that many insurance companies do not offer to pay this up front. Often times it is necessary to request or remind them to pay the reimbursement. It should also be noted that if you live in a state that does not require sales tax reimbursement you still have the right to make a request for the sales tax. Just because it's not mandatory does not mean that an insurance company will deny your request.

Sales tax reimbursement should not be overlooked. As vehicles continue to skyrocket in price so does the amount of tax. The average sales tax when registering a new vehicle in the U.S. is $150.00. This amount can rise sharply, many of today's luxury SUV's require a tax as high as $2000.00. In either case it's your hard earned money and you have he right to request it back.

The laws vary quite a bit and the federal government has left it up too the discretion of each state to define the details. Many states have extended this legislation to not only cover sales tax in the event of a totaled vehicle; but to also cover registration, title and other DMV associated costs incurred by the loss of a vehicle. Sales tax reimbursement can also be mandatory in the event that a vehicle is returned due to what is known as "lemon" laws, or other recurring recalls or faults that result in a manufacturer reimbursing or purchasing back a vehicle from a consumer for safety reasons.

We all hope that we will never be involved in a car accident. Unfortunately, the odds are that at some point in out life we will be. So what should you do if the worst happens and you find yourself in an accident? Each accident is unique and may require slightly different procedures, but the following is a list of steps that are usually helpful after an auto accident:

• If you are able to move your vehicle out of the roadway to avoid any further collisions, you should do so immediately.
• Call 911 to report the accident – even if you think you don’t need the police it is always better to make an official report. 
• Get the other driver’s information including name, address, telephone number and insurance information. Also, write down the make, model and license plate number of the vehicle as the vehicle may be registered to someone other than the driver.
• Check for any witnesses that may have seen the accident and attempt to get their information as well. Although this information may appear on a police report, don’t count on it.
• If you were not transported via ambulance to the hospital then have yourself checked out as soon as possible by a physician. You may have internal injuries that you are unaware of or injuries that won’t present symptoms until a day or two later. If you eventually end up filing a claim for damages as a result of the accident then you will need to prove that the injuries were a direct result of the accident. Therefore, the sooner you seek medical treatment the better.
• When you are able to, return to the accident scene and take photos of the location and any other relevant information (ie: traffic lights, obstructions, road hazards)
• Take photos of any damages your vehicle suffered as soon as possible
• Get at least two estimates for any damage your vehicle suffered. If the vehicle was totaled then get a written estimate of the value of the vehicle. 
• Get a written statement from your employer for any time you missed at work as well as what your hourly rate of pay is.

Isn't amazing how we understand each other if we are speakers of a language. Saying, "totaled" to someone who is learning American English might send him to a dictionary, and his definition might be the sum of the parts of something or another. But, we as speakers of the language, imbued with language for years, perhaps, not even native speakers of the language, but around the language for years, we know what "totaled" means. It means that our vehicle was in an accident and completely demolished. What to do?

If your vehicle has been totaled and you are still living, the only thing you can do is wait for the police to arrive. If you have a cell phone and can still use it, do so and wait for the police to arrive. The object is that you really don't have much choice in the matter since your vehicle has been totaled. After the police arrive, your car will be towed, and you might be sent to the hospital even if you can still walk. At any rate, a stop at the hospital for possible injuries is always a good idea since after a collision, you might have injuries that you didn't even feel because pain from bruises usually develops several hours after the impact.

When you are back at home, call your insurance company and report the accident. Most insurance companies will send someone out to see you and drive you into a rental agency for a rental car if you have that option in your car insurance. Your insurance agent will advise you on your car and will handle much of the discussion with assessing total damage, repair possibilities or getting a new car. Responsibility for the accident will be assessed. But, if you have car insurance, your damages will be covered either by your insurance or the other parties insurance, if there was another party involved. 

After calling your insurance agent, call your lawyer and let him know what happened. Don't be too trusting of insurance agents since you really don't know all of the facts or all of your rights after a totalling experience and your lawyer should know enough on how to advise you. After the medical, legal and mechanical problems have been taken care, you should have some time to find someone to talk to about your accident. You can be totaled emotionally without even realizing it.

One of the most important rules regarding allowing someone else to drive your car is believe it or not- where they go! It can become a nightmare if you don't know what your insurance policy covers.

If the person says "I'm just going to the gas station down the street", and does exactly that and comes straight back but has an accident that is their fault either coming or going, then your insurance company is liable for any claims made by the driver and occupants of the other vehicle. Property damage claims are included.

If the person on the other hand decided to go somewhere else or to another place or on another street that is not enroute to or from the gas station your insurance company can and most likely will refuse to pay. They will assume that the driver was not acting under your direction. In this case the driver of the vehicle will be reponsible for the payment of any claims made. If you are willing to help, you can.The driver is only covered under your policy as long as they are going to or from where they told you they were going before they left in the car.

The other fact to consider is that most insurance policies state in the fine print that additional drivers to whom you give permisssion to drive your car must be at least twenty five years old. So if you decide to send someone to the store even from your own immediate family members in the household, sending a young person could have very serious consequences even if the store is just a couple blocks away.

If your policy is only a simple basic liability one then your vehicle would not be covered in any case. On a policy that is considered to be more than the minimum then your vehicle may be covered. You should ask your agent to explain some of the fine print and make sure you understand it.

Financial responsibility laws differ from state to state so be sure of what your responsibility is regarding other drivers.

Typically, many people do not realize that after one accident a premium increase is coming. It could be right away or when yearly renewal comes. You can rest assure that it will most likely happen, but it is not etched in stone. Today we will look at why one accident can increase your premiums and if it is possible not to see an increase in your premium.

For most people after one accident they will see an increase, but it all depends on many different factors. The two main things that usually will determine if you are looking at an increase are where you live and what was involved in the accident. States all have different criteria when it comes to insurance and that has a bearing if you see an increase. Another very important factor is the details of the accident. If alcohol was involved or became a big factor in the accident an increase will most likely be coming in your auto insurance premiums. These days some insurance companies will not renew a policy when alcohol is the reason for an accident.

Typically if you do have a good driving record and alcohol was not involved you may not see much of an increase if any at all. Another option that more insurance companies are offering is forgiving the first accident you have with them. Many companies are starting to offer this type of program. This is a way just in case you do have an accident you will not see increases on your premiums. You will need to check with your local insurance agent and see if this type of coverage is available. If it is available, it could be something you may want to look into as a way to beat a price increase. 

Always remember the biggest factor that insurance companies figure in is risk of a client. In other words, years of a good driving record will tend to help you in case you do have an accident. Once though you do have an accident another one a increase is a very good possibility. Keeping your record as clean as possible is the best way to help stop premium increases in your auto insurance.