Here’s what you should expect after your car has been deemed a total loss.
Sometimes after getting into an accident, your car is damaged beyond repair. In this case, you would get a call from your insurance provider informing you that your car has been declared a “total loss.” Not sure what this means for you? Here’s what will happen with your total loss settlement.
Pay Your Deductible
If another driver is at fault for the accident, his or her insurance will likely cover your total loss settlement. However, if they do not have adequate insurance coverage, or if you were the one who caused the accident, then you will need to cover it yourself. To gain access to your insurance coverage, you will first have to pay the deductible that you owe. Once your deductible is paid, your insurance coverage will kick in and assist you with the settlement. Keep in mind that if you only carry liability insurance, you do not have the coverage to deal with your damaged car.
Assign Ownership
After your car is confirmed to be totalled, you will essentially sign ownership of the vehicle over to your insurance provider so they can settle the claim. In return, you will receive the settlement to which you are entitled. The insurance company will then handle the proper disposal of the vehicle. Just make sure that you keep your insurance coverage on the car until it is officially taken off your hands.
Receiving Your Settlement
Your car’s ACV (actual cash value) refers to the amount, after fees and deductions, that your insurer will pay to cover your total loss settlement. If you own your car, this payment will come directly to you. However, if you were financing or leasing your vehicle, this payment will go to your financing or leasing company. Keep in mind that your settlement might be more or less than what you owed on your car. If it’s more, you will receive the differential; if it’s less, you will have to pay the remaining balance.
This is what you should expect after your car has been declared a total loss. Do you have more questions regarding your auto insurance? Then don’t hesitate to contact the experts at Stromsoe Insurance Agency in Murrieta, California. Our dedicated team is ready to assist you with all your coverage needs.