When your vehicle is declared a total loss by your insurance company, it means the cost to repair the damage is greater than the vehicle's actual cash value (ACV). In this case, your insurance company will pay you the ACV of the vehicle, minus any deductibles or other charges.
The insurance company will then take ownership of the damaged vehicle and sell it to a salvage yard or recycling center. The salvage value of the vehicle will be deducted from the ACV to determine the amount of your payout.
Here are some things you need to know and do when your insurance company salvages your vehicle:
1. Contact your insurance company as soon as possible after the accident. The sooner you file your claim, the sooner your insurance company can begin the process of valuing and settling your claim.
2. Provide your insurance company with all the necessary information. This includes the date and time of the accident, the location of the accident, the names and contact information of any other drivers involved, and the police report number.
3. Get an estimate for repairs from a qualified auto repair shop. Your insurance company may require you to get an estimate for repairs before it will decide whether to declare the vehicle a total loss.
4. Review your insurance policy carefully. Your policy will outline the specific procedures for filing a claim and receiving payment for a total loss.
5. Get paid for your vehicle. Once the insurance company has decided that the vehicle is a total loss, it will pay you the ACV of the vehicle, minus any deductibles or other charges.
6. Surrender the title to your insurance company. The insurance company will need to have the title to the vehicle in order to sell it to a salvage yard or recycling center.
7. Get a replacement vehicle. If you need to replace your vehicle, you should start shopping around for a new car as soon as possible. You may be able to use the insurance payout from your totaled vehicle to help cover the cost of a replacement.
Here are some additional tips for dealing with a totaled vehicle:
- Keep all of your documentation related to the accident and the insurance claim, including the police report, estimates for repairs, and the insurance payout.
- If you have any questions about the insurance claim process, contact your insurance company directly.
- Be prepared to negotiate with the insurance company if you believe the ACV of your vehicle is too low.
- If you are unhappy with the way your insurance company has handled your claim, you may be able to file a complaint with your state's insurance department.
