The American auto insurance industry may have been ripping off the American auto owning public to the tune of what I estimate to be about a BILLION DOLLARS EVERY SINGLE YEAR. HereÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s how it works:
Mr. and Mrs. Smith are driving along in their car when they are unfortunately involved in an auto accident whereby their car is heavily damaged. The auto insurance company responsible to pay damages determines that it would cost more to fix the car than the car is worth. They elect their option to declare the vehicle a ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¹Ãƒâ€¦Ã¢â‚¬Å“total lossÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢and pay off its value rather than pay to have it repaired. That sounds fair, right? If an older car is only worth two thousand dollars but would cost four thousand to fix, it only makes sense for the insurance company to pay out the value of the car rather than pay to fix it. States often require that old cars not worth fixing be taken off the road. That makes sense as well. It all sounds like it makes sense, right?