Has your car experienced extensive damage that the cost to repair your vehicle to its pre-damaged state exceeds what it’s worth? If so, your auto insurance company could label it a total loss.

Determining whether a vehicle is a total loss depends on several factors:

1. Individual states have laws that require a vehicle must suffer a certain percentage of damage before it can be deemed a total loss.
2. The auto insurance company can set their own standards for totaled vehicles in addition to following the state laws.
3. The vehicles specific condition is the main factor, and adjusters will look to see if the car can be repaired safely and how the cost to repair the car compares to the value of the vehicle.

In the event of a total loss you’ll file a claim with your auto insurance company and the procedure varies based on company, however, generally they’ll ask for:

1. Your vehicle’s title and license plate.
2. Each key to the vehicle.
3. Your lienholder’s contact information, if applicable. (Some companies leave contacting your lienholder up to you.)

After you file your claim, many insurance companies arrange for the vehicle to be moved to a safe place and the claims adjuster will begin the process of determining if your car is deemed a total loss and what the actual cash value (ACV) you’ll receive for the totaled vehicle. Your auto insurance company pays the fair market value or ACV for your totaled vehicle. If you accept the ACV and do not dispute the claim you could receive a full settlement or partial settlements based on your insurance company’s options.

However, before a total loss you’ll want to make sure your policy includes coverage in the event of a total loss accident. At ToInsure.Me we offer a diverse range of plans with several carriers and our educational specialists are ready to sit down with you today to discuss your auto insurance options. Give us a call now at 877.986.6908 and we’ll make sure you and your family are covered.

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