The situation after an auto accident can be quite stressful to deal with, especially if your insurance company estimates the repair costs and declares your car to be a total loss. Here is what you should know about handling a total car loss claim and what this actually means.
1. What’s the Vehicle’s Actual Cash Value (ACV) vs. the Cost of Repairs?
A car is deemed to be a total loss when the cost of repairing it will be more than its Actual Cash Value (ACV). To estimate the ACV of your car for the auto insurance coverage, the insurer would look into your car’s condition, its mileage, and also contact sources such as the National Automobile Dealer Association (NADA). If the estimated ACV is lower than the estimated cost of repairs, then your car will be declared a total loss.
2. What to Do After a Total Loss Auto Accident
After a total loss auto accident, report the car insurance claim to the insurance company as soon as possible. The sooner you file the claim, the earlier the company will start working on it. If you feel there’s a high chance for your car to be a total loss, take it to the insurance company’s recommended repair shop. This will help to make the claim process even faster.
3. What Should I Do If My Car Is a Total Loss?
If someone else caused the accident, then check whether their insurance company can handle the total loss settlement. If they don’t, your auto insurance coverage will replace your car, provided it’s less than three months old. Otherwise, the insurance company will pay you the ACV of your vehicle when the claim was made, minus the deductible as per the policy of the collision coverage.
Is your auto insurance coverage not qualified for a total loss accident? If so, then contact the experts at Patterson & Associates in Richardson, Texas. We will assist you with all your car insurance needs today.