Here’s what happens after your car is totalled.
After getting into an accident, your car might be damaged beyond repair. In this case, your insurance agent will call and report that your car has been declared a “total loss.” Wondering what this means for you and what you should expect? Read on to learn what happens in the aftermath of your car being deemed a total loss.
- Paying Your Deductible
If another driver caused the accident, then his/her insurance should cover your total loss settlement. However, if they do not have adequate coverage or if you were responsible for the accident, this means that you will have to pay your insurance deductible. Once your deductible is paid, your collision coverage will kick in and assist with a covered loss. Keep in mind that if you only carry liability coverage, then you will not have coverage for your damaged vehicle and you should not expect a total loss insurance payout.
- Transferring Ownership
You will essentially sign over ownership of your totalled vehicle to your insurance provider so that they can settle the claim. In return, you will receive the settlement to which you are entitled. From there, your insurer will take care of disposing your vehicle. However, make sure that you keep your insurance coverage on the vehicle until it is officially taken off your hands.
- Getting Your Settlement
Your car’s ACV (actual cost value) refers to the amount of money, after deductibles and fees, that your insurer will pay to cover the total loss settlement. If you own your vehicle, this payment will come directly to you. However, if you were leasing or financing the car, the check will go to your leasing or financing company. Keep in mind that the settlement might be more or less than what you owed on your car. If it’s more, you will receive the differential. If it’s less, you will be on the hook to pay the remaining balance.
This is what you should expect after your car is declared a total loss. Do you have more questions? Then don’t hesitate to contact the experts at Pierce Insurance Group. Our dedicated team is ready to assist you with all your insurance needs.