What to Expect if Your Auto is a "Total Loss"
- After your claim is reported, the carrier will typically send an adjuster to inspect your vehicle and to estimate the repairs. If there is a possibility your vehicle may be a total loss, the adjuster will also record all appropriate information about your vehicle and rate its condition for the valuation process.
- The carrier may deem your car to be a total loss if the cost of repairs plus the salvage value (value after loss) exceed its market value (value of the vehicle before the loss), or if the vehicle cannot be safely or physically repaired to its pre-loss condition. Other factors may go into this determination, including the likelihood of hidden or unforeseen damages, and increased rental vehicle expenses.
- Many carriers use independent vendors to determine your vehicle's market value. A thorough report will be generated comparing your vehicle to comparable vehicles for sale in your geographic area. You should receive a copy of this report.
- If you are notified that your vehicle is a total loss, we suggest that you consider doing independent research to gain an idea of your vehicle's market value. Research could include discussing the vehicles specifics with local dealers to determine a range of what the vehicle could have sold for prior to the loss. It is useful to determine if any comparable vehicles exist locally as well. This information will be useful if you disagree with the value determined by the carrier.
- If your loss is covered, you should be paid the "actual cash value (ACV)" of your vehicle less your policy's deductible. The ACV represents your vehicle's market value taking into consideration pre-loss condition, options, and mileage. Note that the ACV could be less than the amount owed on your auto loan. In addition to the ACV, the offer should include sales tax (if applicable in your area) and unused licenses and fees.
- If you have rental car coverage, ask your carrier up front how long they will pay for the rental vehicle after an offer is extended and/or accepted.
- If you wish to retain your totaled vehicle, ask your adjuster if this is a possibility and how the vehicle settlement will be impacted. If applicable, determine the process involved and whether this will result in the title being reissued or "branded" by the state.
- If you have any questions or concerns contact Payne Financial Group for assistance.
