Here are some of the steps that you should take when your car has been declared a total loss.
If you’ve been in a major auto accident, then there’s a good chance that your insurer will deem your car a total loss. A total loss claim occurs when the damages to your car exceed a certain percentage of its actual cash value. While this is a worrying situation, total loss claims happen more frequently than you might assume. This is why it’s so important to know what to do if you ever find yourself in this situation. To ensure that your claim proceeds smoothly and efficiently, here are some of the steps that you should take when your car has been declared a total loss.
- Locate Your Car Title
Your car title is needed to process a total loss claim, so it’s important that you know where this document is. If you cannot find your title, then file for a lost title at the DMV as soon as possible so you can officially begin the claims process.
- Determine How Much You Will Receive for Your Settlement
Do some research to get a general idea of how much your car is currently worth. Use resources like Kelly Blue Book to see what they value your make and model at. You should also look at similar vehicle listings in your area. This will give you a good idea of what your insurer will value your car at and how much you will receive in your settlement. Keep in mind that if you still owe money on your car, then the insurance settlement will be paid out to your lender first. If the amount you owe exceeds the actual value of your car, then you will be personally responsible for paying the remaining loan amount.
- Complete Paperwork Promptly
Total loss claims require a lot of paperwork. For instance, you and your insurer will have to come to a written agreement on the value of your car. You will also have to sign ownership of the vehicle over to your insurer so they can process your claim and pay the settlement to you or your lender. Prompt completion of this paperwork will help you put the ordeal behind you as soon as possible.
These are some of the steps that you should take when your car has been declared a total loss. Remember having the right auto insurance is essential to dealing with a totaled car. To secure the right auto insurance to meet your needs, contact the experts at CIA Insurance and Risk Management to get started today.
Post written by Sam Crudo, Chief Executive Officer
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