What is the one phone call that you dread after an accident? It is from the insurance agent saying your car has been declared a total loss! If you are in a similar situation, here is what you should be inquiring about when discussing your total loss car insurance claim.
If the accident was due to someone else’s fault, that individual is liable to pay the loss settlement. However, if you were at fault, it may be time to review your insurance papers. If you have collision coverage, it will protect you by paying the market value of your car subject to your collision deductible.Your car insurance claim for a total loss will not reimburse you anything if you only have the liability coverage on your policy.
After signing the settlement papers, the ownership of your car will be transferred to the insurance carrier. It is inadvisable to think of any other way. Even if you choose to keep the vehicle and put it back on the road, the records will still show your car as totaled. Due to this, you may face legal charges. Moreover, it will be difficult to get insurance for your totaled vehicle.
Insurers will get your car evaluated to calculate the actual cash value (ACV) of your vehicle. The insurer will subtract your deductible and fees from this amount and pay the remainder for the loss settlement. If you have leased the car, the amount will go directly to the financing company. Of course, you will get the remaining balance if there is any.
If your car’s value is substantial, you may get a significant sum from your collision coverage for a new car. The rental car coverage will help you with the costs of renting a car until the time specified in your policy.
A total loss car insurance claim can be a tedious process to manage alone. Are you prepared for a total loss car accident? Contact the experts at Mike Leonard Insurance Agency to get the right auto insurance coverage. Serving Carrollton, North Texas, Coppell, and all of Texas, we are here to help you with all your car insurance needs.