Going through the claim process after a car accident can be stress inducing and sometimes confusing. This is especially true if you think your vehicle may be a “totaled.”
Here’s some information about how your insurance company assesses your vehicle after an accident and what happens next.
Assessing the value of your vehicle
After an accident, your insurance company will send an adjuster to see your vehicle, or send the vehicle to a body shop they work with, to determine the cost of repairs.
They will assess the condition of the vehicle and look for any hidden damage, for example to the frame, in addition to the more obvious repairs that are needed.
The adjuster will write up a detailed estimate and the insurance company will determine the value of the vehicle by looking at the make, model, and mileage. They will take these factors into account and compare your vehicle against a database like the Kelly Blue Book to determine your vehicle’s value.
Is it “totaled”?
Cars are considered “totaled” when the cost to repair the vehicle exceeds the actual cash value of the vehicle. Most insurance companies actually have a threshold around 75%, so if the repair costs are 75% of the vehicle’s value, the vehicle is considered totaled.
Your settlement offer
To determine a settlement amount, your insurance adjuster will not only look at the vehicle’s value as determined by the database they use, they’ll also look at similar vehicles in the local market to see what they are selling for.
They will determine your settlement amount then subtract your deductible and costs such as towing your vehicle. They may add registration and title fees for the costs of replacing the vehicle to your settlement as well as sales tax.
If you own the vehicle outright, you will receive a check in your name. If there is a lienholder on the vehicle, payment goes to them first, and you’ll receive anything left over.
To learn more about your auto insurance options, contact us here.
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