Here’s what happens after you total your car.
After getting into an accident, your car might be damaged beyond repair. In this case, your insurer will call to inform you that your car is a “total loss.” Wondering what you should expect after this declaration? Here’s what happens after your car is deemed a total loss.
Paying Your Deductible
If another driver caused the accident, his/her insurance should cover your total loss settlement. However, if they do not have adequate coverage or if you were the one at fault, then you will have to access your auto coverage. To do this, you will likely have to pay your insurance deductible. Once your deductible is paid, your collision coverage will kick in and assist with your loss. Keep in mind that if you only carry liability insurance, you will not have coverage for your damaged vehicle.
Once your car is confirmed to be totalled, you will essentially sign ownership of your car over to your insurance provider so they can settle the claim. In return, you will receive the settlement that you are entitled to. From there, your auto insurer will cover the proper disposal of your car. Just make sure that you keep your insurance coverage on the vehicle until it is officially signed over.
Your car’s ACV (actual cost value) refers to the amount of money, after deductibles and fees that your insurer will pay to cover your total loss settlement. If you own your vehicle, then this payment will come directly to you. However, if you were financing or leasing your car, then the payment will go towards your financing or leasing company. Keep in mind that the settlement might be more or less than what you owed on your car. If it’s more, then you will receive the differential. If it is less, then you will be responsible for paying the remaining balance.
This is what you should expect after your car is declared a total loss. Do you have more questions regarding your auto insurance? Don’t hesitate to contact the professionals at Weaver & Associates in Arcadia, California. Our dedicated team is ready to assist you with all your insurance needs.