Total Loss
Do you know what to do if your vehicle is considered a total loss?
What does total loss even mean?
A damaged vehicle is considered a total loss by your insurance company when the estimated repair cost exceeds your state's threshold when compared to the value of the vehicle. If you've been in an accident and have been told your car is a total loss, here are a few questions to consider before moving forward:
What is my car worth?
Do I owe anything on my vehicle?
Do I have the appropriate insurance coverage?
Do I have gap insurance if I owe more than the vehicle's value?
These questions and answers will help give you a head start when it's time to negotiate a settlement with your insurance.
When it comes to a settlement, it can be overwhelming, confusing, and there can be a lot of misinformation. Remember, even labeled as a total loss, it is still your vehicle and you have rights:
Never release your vehicle and don't sign anything until you have an agreed upon price in writing or payment in hand. These situations are always negotiable, and you want to be sure you're receiving a fair settlement.
You do not have to accept your insurance's initial offer. You are in control, and any final decisions are yours to make.
Check with your Department of Insurance for more information. Your state's DOI may help answer additional questions and point you in the right direction.
Refer to your insurance policy's language to explore your options on the right to appraisal if necessary. Don't feel pressured to make a hasty decision.
Always be sure to speak with an experienced professional. Your preferred collision repair shop may help answer any questions you may have so you can move forward with your vehicle.
