Five Things A Vehicle Owner Needs To Be Aware Of After A Total Loss
Dealing with a total loss after an accident can be a stressful experience. However, it could end up being good for you depending on the coverage you have on your vehicle and the value of your vehicle.
You should be aware of the following five things if you're a vehicle owner who has just been through an accident that results in significant damage:
You're only going to be compensated for a total loss if you have collision coverage as part of your auto insurance policy.
If you have only liability insurance, you should be aware of the fact that you're not going to get anything back from the insurance company for damages to your own vehicle. A total loss will only be declared if you have collision coverage and your insurance company sends out an adjuster to analyze damages to your vehicle.
When a car is totaled, the insurance company is expected to provide you with the actual cash value of the vehicle if you have collision coverage.
If a total loss is declared on a policy you have that includes collision coverage, the insurance company is expected to compensate you with the actual cash value of the vehicle. In other words, the insurance company will replace the vehicle for you with money so that you could theoretically go out and buy another vehicle of the exact same value.
You can get an idea of what the actual cash value of your vehicle is through vehicle valuation sites.
If you're waiting to hear exactly how much you're going to get back after a total loss, you can do some research online to figure out how much your vehicle was worth just before the accident.
Remember that you are looking for the fair resale price when you're trying to figure out how much the insurance company should be providing you as the actual cash value. Car valuation sites online are ideal for helping to determine the value of a totaled vehicle.
You're going to need to provide your title to the insurance company to get compensation for a total loss after filing a claim.
Before the insurance company is going to compensate you, you're going to have to provide them with your vehicle title. You're also going to have to sign the back of the title to state that you want to transfer possession of the vehicle to the insurance company.
If you are still paying off a vehicle loan, the insurance company will pay off the loan and send you a check for what's left over.
When a policy holder has a loan out on a totaled vehicle, the insurance company will pay the loan off directly. The policy holder will only receive money as part of the compensation if the actual cash value determined by the insurance company is more than what the balance on the loan was.
