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Practical Tips for the Next Steps after Your Car Is Totaled

13 Jul by 5280 Insurance

Getting your car totaled is a huge bummer, but it’s not a completely sad situation if you have the appropriate coverages. 

In the event that it is ruled that you were not at fault, you have the choice of filing a claim with the other driver’s insurance company.

Your insurance company will pay you the vehicle’s value if the accident was your fault and the cost of repairing your automobile exceeds its value or cannot be fixed. 

Below, you will find practical steps on how to proceed with getting compensation for your totaled vehicle.

Recognizing Whether Your Car Is a Total Loss

When the cost of repairing your car exceeds the worth of the vehicle, your car insurance company will refer to it as a total loss. Before formally stating that the damaged car is a total loss, your insurance provider will normally finish an investigation of it.

Most insurers consider the structure and state laws in addition to your car’s condition when determining its value. 

In some jurisdictions, a vehicle is automatically deemed a total loss if the cost of repairs exceeds a predetermined percentage of its worth.

Deciding What to Do If Your Vehicle Is Totaled

When your vehicle is written off, you submit a claim under the relevant type of coverage to obtain compensation for the vehicle’s value, less any applicable deductibles. 

The type of coverage you’ll utilize to make a claim will depend on the circumstances surrounding the total loss of the vehicle.

Gap insurance and new car replacement are two more coverage choices that may be of assistance to you if your automobile is totaled. 

Any outstanding debt on a totaled car that was financed or leased will be helped by gap insurance. A totaled car will be replaced with a new car of equivalent value.

Knowing If You Can Keep Your Totaled Car

In most areas, if your car is totaled, you can keep it and handle the repairs yourself. The car’s salvage value will be subtracted from your payment by the insurance.

Getting your car back on the road, though, could involve a lot of red tape. Until repairs are finished and inspected, your car will likely be given a branded title, salvage title, or salvage certificate. 

Totaled cars might be challenging to insure or sell later on, and the total loss will be included in the vehicle history record.

Exploring Options If the Insurance Payment Can’t Settle Your Debt

The difference between your debt on a car and its real value is covered by gap insurance, commonly referred to as “loan/lease payment coverage.” The gap insurance offered by Progressive will pay up to a maximum of 25 percent of the car’s actual cash worth.

Remember that the foregoing scenario may affect new automobile owners the most. Newer cars generally start losing value as soon as you take them off the lot and drive them home.

Recognizing What Follows If a Financed Car Is Totaled

If you are insured, your insurer will pay your lender the actual cash worth of the car less any applicable deductible. Ensure your agent or insurance provider has your lender’s contact information and your account number. 

Contact the at-fault driver’s insurance company and provide them with your lender information if you were not at fault for the crash but your car is totaled and you still owe money on it.

Conclusion

You must keep up your loan or lease payments until the insurance provider sends your lender a payment in order to keep your credit in good standing. 

If you don’t have insurance or have insufficient coverage, you are still liable for the balance even though your car is no longer roadworthy.

Make sure you have the best auto insurance with 5280 Insurance! We offer insurance plans for auto, home, motorcycle, umbrella, flood, and more. Contact us now to discuss your options!

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