What happens when insurance declares total loss?

If the insurer says that your car is a total loss, it will only pay you the fair market value of your car as of the day of the accident. Unfortunately, an insurer is only required to pay damages up to the fair market value of the destroyed property, even if you owe more than the car’s value on your car loan.

What should you not say to an auto insurance adjuster?

Never say that you are sorry or admit any kind of fault. Remember that a claims adjuster is looking for reasons to reduce the liability of an insurance company, and any admission of negligence can seriously compromise a claim.

What happens when a car is declared a total loss?

If the insurance company finds that the cost of repair is close to or greater than its market value, they will declare it a total loss and cut you a check for the vehicle’s cash value. You can use the insurance funds to purchase another vehicle, or to keep the totaled car and pay for the repairs yourself from the check.

How does my car insurance company pay for a totaled vehicle?

Your car insurance company pays the fair market value, or actual cash value (ACV), of your totaled vehicle. Simply put, a vehicle’s ACV is the your car’s current value after depreciation .

How does an insurance company determine the value of a car?

Once your vehicle is safely tucked away and the insurance company has all required items, the claims adjuster will begin the processes of determining the following: Whether your vehicle is a total loss . (See “Total Loss Defined” above). The actual cash value you’ll receive for your totaled vehicle.

How do I dispute a totaled car insurance claim?

If your insurance company declares your car as totaled, and you disagree and want to dispute your insurer’s valuation, you’ll need lots of evidence proving your car is worth more than what your insurer determined. This can involve negotiating with the insurance company, hiring your own appraiser, and going through a lawyer.