Your car will be declared a total loss if it is severely damaged, and its repair costs exceed the actual cash value of your vehicle. If you have the right auto insurance coverage, you can apply for a total loss claim. However, you need to understand specific terms before applying for the claim.
Read on to learn more about how total loss car insurance claim works.
Insurance Policy Required
For a total loss car insurance claim, your policy should include property damage liability. With collision insurance, you have a better chance of applying as it does not matter who was responsible for the accident.
In Texas, the damage must be more significant than 100% of the cash value of the car for a total loss to be acknowledged.
Do Your Part
There are certain things that your insurer requires in case of a total loss claim. You must remove the license plates and personal belongings, handover the key to the claim adjuster, and submit the necessary paperwork.
Action by Insurance Company
The insurance company takes ownership and informs the Department of Motor Vehicles regarding the vehicle being totaled. When the car is accepted as ‘salvage,’ it is sold to a buyer.
Compensation Payable to You
The amount payable to you under total loss claim car insurance is the same as actual cash value (ACV)of the car. It is the amount minus the fees and deductibles that the insurer has to pay for the total loss settlement. The way the ACV is calculated differs from insurer to insurer.
If you are the owner of the car, the claim amount will be paid to you. If the car is leased, the claim will be paid to the leasing company.
This is what needs to be done in case of a total loss of car insurance claim. If you are looking to get the right auto insurance coverage that covers total loss claims, contact the experts at VGW Walker Insurance in Texas. Our team is ready to assist you with all your insurance needs today.
