What to expect from you car insurance after a total loss


After an accident, dealing with car insurance and a totaled car can be quite stressful. Knowing how to approach your insurance company and being familiar with what to expect can be very helpful. Being forced to replace a totaled car is especially difficult if you leased or even financed the automobile.

Reasons Your Automobile Can be described as Total Loss

You can find three explanations why your insurance provider would think about your car a complete loss:

  1. It can’t be repaired safely
  2. You live in a state where the loss is a total loss due to cost of damage.
  3. The vehicle’s worth is less than the repairs.

For an insurance company to arrive at the decision your vehicle is a total loss, they ask their claims insurance adjuster to make an estimate of the cost of the damages, combined with the estimate, how old the car is, it’s mileage, it’s pre-accident body condition, plus any pre-accident improvements. Then your adjuster finds similar makes / models that re for sale in your same location and takes the total loss estimate, compares it along with the cost of other vehicles like yours, checks the KBB value, & comes up w/ the Real Cash Value of your automobile. You can ask the adjuster for the specifics of the estimate and if you feel your automobile may be worth more, try to find a more suitable match.

Will the Insurance Company Replace My Car by giving me a New One?

Not unless your business provides Guaranteed Rc coverage for brand new vehicles in that case your payment will cover the cost of a brand new car. If you don’t have this kind of coverage, your insurance provider is only forced to pay out the specific cash value of your vehicle minus the collision deductible. This cash amount will probably be enough to buy a car just like your other one.

Will I Get issued a Check for the entire Amount?

If you own the car, you will receive payment within a few days if not it will depend on if you have a car that is leased or financed.. If the event the car is leased, the entire amount goes to the leasing organization. If you financed the vehicle, the total amount owed on the car will go with them and the rest goes to you. If your insurance policy gave you a short-term rental-car, ask to your adjuster how long it will be possible to keep the rental before having to buy a new car.

What If I want to Keep and Repair the Car on my Own?

Sometimes because of sentimental attachment, people desire to keep & repair their cars after the collision. In cases like this, a number of factors, the adjuster must consider before the owner obtaining the car. Many of these factors include is this permitted by state regulations, then the salvage yard is contacted to check out what is the fair market value on the car. Once the fair market value is determined, this amount gets subtracted from your pay out; you get your automobile back with the remainder of the settlement plus a salvage title. The salvage title will not permit you to register your automobile until you make all the repairs.

The price and stress of fixing a damaged or totaled vehicle can be devastating. Understanding what the language of your insurance policy is regarding totaled cars and knowing state laws should make the experience a little more bearable.

ICC Collision has 4 convenient locations to serve you.  If you are interested in getting an easy online estimate of damage, feel free to use our online estimate tool.  Once your information is received, we will review it and contact you with a quote.

For more information, Contact ICC Collision Centers by clicking the picture below: