My Car Is a Total Loss: What Do I Do?

If you get into a severe accident, your car may be damaged beyond repairs. When you raise a car insurance claim, the agent may inform you that your vehicle is a total loss. In this blog, we cover what you need to know about a total loss car insurance claim.

How Do Insurance Companies Identify a Total Loss?

When it comes to a car insurance claim for total loss, the first step is to identify if the vehicle can be repaired or should be declared a total loss.

This is based on three factors:

  • A comparison of the actual cash value (ACV) of the car against the cost of repairs
  • Whether the car can be repaired to meet the safety standards
  • Local and state regulations on deciding whether the damage equates to a total loss

What Happens Next?

You may be worried after knowing that your car is a total loss! However, here’s what you can do:

Pay Your Deductible

If someone else caused the accident, their insurance carrier would handle the total loss car insurance claim. However, if you are at fault, then you will have to pay the deductible.

Transfer Ownership

To facilitate the settlement of your car insurance claim for a total loss by your insurance carrier, you will have to transfer the ownership of your vehicle to them. However, do retain the insurance coverage on your car.

Get Paid

To settle your total loss car insurance claim, the insurer will pay you the ACV, minus any fees and deductibles. In case you own the car, the check will be in your name. Otherwise, it’ll be made out to the car purchase financing agency.

Buy a New Car

Now that you have no car, it is time to get behind a new set of wheels! You might ask: How do I get another car after a total loss? Simply cash in your insurer’s check to get a new vehicle and recover from the damages of your totaled car.

Once you get a new vehicle, don’t forget to secure complete auto insurance coverage. Do you have additional questions about your car coverage? Contact the experts at Miller Carlisle Insurance Services. Our dedicated team is eager to assist you with all your auto insurance needs today.