It can be stressful if your car is severely damaged due to an accident and declared a total loss. However, if you have the right auto insurance coverage, you can apply for a total loss of car insurance claim and get the damages covered.
When Is Your Car Declared a Total Loss?
The repairing expenses are compared to the vehicle’s ACV (Actual Cash Value). If the total repair cost is more than the car’s ACV, the car will be declared a total loss. Authorities such as the National Automobile Dealer Association (NADA) must be approached for better clarity. Along with this, the future safety of the vehicle and laws of the respective state must be taken into consideration. During such times, requesting the total loss car insurance claim is a helpful solution.
What to Do When Your Car Is a Total Loss
Pay the Deductible Amount
If your car is declared a total loss due to an accident caused by someone else, they have to pay the total loss settlement. If the accident is caused by you, then you have to pay the deductible amount.
Ownership Transfer
After paying the deductible, you need to transfer the car ownership to the individual performing the settlement procedure. You need to make sure that the vehicle is not used for travel any time in the future.
Getting Paid
Depending on the ownership of the car, you or the financing company gets the amount.
Rent or Buy a Car
Now you can rent or buy a new car. Figure out what works best for your needs and your budget. Once you have found the right vehicle, be sure to insure it with a reliable auto insurance policy.
It is essential to have the right auto insurance that easily covers total loss car insurance claims. Do you have additional questions about your car insurance? Contact the experts at Pierce Insurance Group. Our dedicated team is eager to assist you with all your coverage needs today.