Here’s what you should expect after your car is deemed a total loss.
Sometimes after an accident, the car is damaged beyond repair. If this happens to you, your insurer will call and inform you that your car has been declared a total loss. So, what does this mean for you? Here’s what you should expect after your car has been declared a total loss.
Paying Your Deductible
If the other driver is responsible for causing the accident, then their insurance will likely cover your total loss settlement. However, if you are at fault or if the other driver does not have adequate insurance, then you will need to access your own coverage. This means that it’s time to pay your deductible. Once your deductible is paid, your insurance will cover the claim. Just remember that if you only carry liability insurance, you will not have coverage for your car’s damages.
Once your car is declared a total loss, you will essentially assign ownership of your vehicle over 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 handle the disposal of your vehicle. Just make sure that you keep your insurance coverage on your car until it is officially taken off your hands.
Receiving the Settlement
Your car’s ACV (actual cash value) is the amount, after fees and deductibles, that your insurance provider will pay to cover your total loss settlement. If you own your car, the settlement will come directly to you. However, if you are financing or leasing your vehicle, the settlement will go to your financing or leasing company. The settlement might be more or less than what you owe on your car. If it’s more, you will receive the differential; if it’s less, then you will be responsible for paying the remaining balance.
Here’s what you should expect after your car has been declared a total loss. Do you have more questions regarding your auto insurance? Then turn to the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. Our dedicated team is ready to assist you with all your insurance needs. Contact us to get started today.