My Car Total Loss In An Accident, What Happens Next?



My Car Total Loss In An Accident, What Happens Next?


A complete wreck of a car can range from a catastrophic collision to bumping a deer. In any case, a total loss auto accident is usually more intricate than getting the vehicle repaired. Making an entire loss claim usually involves many steps, and knowing the right things to do after a total loss will help speed up the claims process, and you can get your insurance money as fast as possible.

How Do You Know If Your Car Is Totaled?


A "total loss" in auto insurance is a terminology insurance companies use when the cost to fix the car is more than the car's value. To ascertain if the vehicle is a total loss, your insurer will complete a thorough assessment of the damaged vehicle before declaring it a total loss. When assessing the car, most insurance companies factor in the current state and structure of the vehicle. Some insurance companies automatically deem a car to be a total loss if the cost to repair exceeds the vehicle's worth.
Report The Claim To Your Auto Insurance Provider As Soon As Possible

When involved in a total loss car accident, you should report to your insurer immediately because this is a claim you don't want to sit on. Total loss accident claims can sometimes take several weeks to finalize and close. Though the insurance company plays a huge role in the speed of the claim, your role is very pivotal in speeding things up. The quicker you file the claim, the faster your insurer can start working on your claim.

How Is My Car's Value Decided?


To determine your car's "actual cash value" at the time of the accident, insurance companies usually use some factors to figure out your car's actual worth. These factors include your car's age, condition, and mileage, and resale value. In addition to that, they also check the selling price of similar vehicles in your area.

Check To See If You Still Have To Pay A Loan On A Totaled Car


Realizing the amount you owe on your vehicle can prepare you if your car credit is more than the current estimation of the car. In case you're still financing a car that has been totaled, your insurer will probably make a claim payable to both you and your moneylender, which implies you'll need to reach an agreement with your moneylender on the best way to release the money. Usually, the moneylender will be reimbursed first, with any leftover cash being paid to you.

In some situations, it's still possible that after valuing your car, you still owe your moneylender more for the vehicle than the insurance payment you get. You are liable for paying the leftover balance on the vehicle lease or loan. For example, let's assume you owe RM15,000 on your vehicle loan; however, your vehicle's worth has devalued to RM13,000 when it's totaled. If you have comprehensive coverage, your insurance company will repay you for the actual cash value of your vehicle — for this situation, RM13,000 and you will need to balance up the remaining RM2,000 out of your pocket.

Final Thought


Communication is essential for your insurance claim to run smoothly. You need to take it one step at a time and work closely with your insurer. If you get into a car accident, irrespective of who is at fault and your vehicle total, you should notify your company immediately.

At Fincrew financial marketplace, we're available 24/7 to help report a claim. Remember, If you can survive a major car accident declared as a total loss, you can survive the claims process.

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