What to Expect After Your Car is Declared a “Total Loss”, expect after your car is declared a total loss

What to Expect After Your Car is Declared a “Total Loss”

Here’s what to expect after your car is declared a total loss.

When you get into an auto accident, your car might be damaged beyond repair. In this case, your auto insurer will give you a call to tell you that your car is a total loss. But what happens now? Here’s what you should expect after your car is declared a total loss.

  • Pay Your Deductible

If someone else caused the accident, his or her insurance should cover your total loss settlement. However, if they do not have adequate coverage or if the accident was your fault, your collision coverage will kick in. This means that it’s time to pay your deductible. After paying your deductible, your insurance coverage will kick in and cover the rest of your total loss settlement. Keep in mind that if you only carry liability coverage, you are not covered for the damages to your own vehicle and you should not expect a total loss payout from your insurer.

  • Transfer Ownership

Once your car is totalled, you will essentially sign over ownership of your car to your insurance provider so that can settle the claim. In return, you will receive the settlement to which you are entitled. From there, your insurer will handle the proper disposal of your car. Just be sure that you keep your insurance coverage until your vehicle is officially transferred to your insurer.

  • Get Your Settlement

Your car’s ACV (actual cash value) refers to the amount, minus deductibles and fees that your insurer will pay to cover a total loss settlement. If you own your vehicle, this payment will go directly to you. However, if you lease or finance your car, the settlement will go to your leasing or financing company. Keep in mind that the settlement might be more or less than what you owe on your car. If the settlement is more, you will receive payment for the differential. If it is less, you will likely be responsible for paying your leasing or financing company what you still owe.

This is what you should expect after your car is declared a total loss.  Do you have more questions regarding what happens after a car accident?  Then contact the experts at Tri-Star Insurance/HUB International in Plano, Texas.  Our dedicated team is ready to assist you with all your coverage needs.

Don’t be shy. Give us your questions, feedback and opinions on this topic.