LOS ANGELES, Feb. 15, 2022 /PRNewswire-PRWeb/ -- Compare-autoinsurance.org has launched a new blog that presents what car insurance policies can help drivers who totaled their cars.
For more info and free car insurance quotes online, visit https://compare-autoinsurance.org/how-car-insurance-can-help-drivers-who-totaled-their-cars/
Even the best drivers can have their cars totaled. The term "totaled" is only used in insurance when the damage to the car falls under a particular set of circumstances set by insurance companies. A car can be deemed as totaled only by the driver's insurance adjuster and the insurance company. Insurance companies typically designate cars as a total loss when the cost to fix the damage is more than the car's value or if the car can't be repaired at all for some reason or another. The threshold for declaring vehicles a total loss is determined by each state. However, insurance providers may choose to use a lower standard. Most providers use various factors like market evaluation, year, make, model, mileage, and overall condition to determine the value of a car and designate a total loss.
Drivers who are dealing with a totaled car should know the following:
- What insurance policies cover totaled cars? Comprehensive coverage is used to cover a total loss that's not a result of a collision. It covers stolen vehicles that are too damaged after they are retrieved, vehicles that are damaged beyond repair by flood, fire, animals, and fallen objects. Collision coverage covers total losses from colliding with another vehicle or object. Uninsured/underinsured motorist coverage is used to protect drivers who totaled their cars in accidents where the at-fault driver doesn't have insurance or has insufficient coverage.
- How much is the insurance payout for a totaled car? When a car is deemed as totaled, the insurance company will pay the actual cash value (ACV) at the time of the loss. Wear and tear, mileage, previous accidents, and more are factored in when determining the actual cash value. In most cases, the settlement money will be less than what the policyholder paid for his vehicle at the time of purchase.
- What drivers can do if they still owe money on their totaled vehicles? If a driver is financing his car and still owes money, the insurance provider will send the total loss payout to the lender. If the payout is more than what the driver owes to the lender, the provider will send the money to the lender to pay off the loan balance and then send the remaining money to the driver. However, in some cases, the insurance payment is not enough to pay the rest of the loan. In this situation, GAP coverage or Loan/Lease Payoff coverage can help. GAP insurance covers the difference between the car's depreciated value and what the driver owes on his loan. Loan/Lease Payoff coverage is used to offset the remaining amount due on the driver's loan or lease if the car has been totaled in an accident or it's been stolen. Unlike GAP coverage, Loan/lease coverage does not cover deductibles and only pays a certain percentage of the car's ACV.
- Can drivers keep their totaled cars? Depending on the regulations of each state, drivers may be entitled to keep their totaled vehicles. In most cases, drivers can buy back their totaled cars from their insurance providers. To put the totaled car back on public roads it must be fixed, pass inspection, and the owner will need a rebuilt or salvaged title. If the owner of a totaled car doesn't want to drive the vehicle, he can use the parts of the totaled car in another vehicle, or sell them for profit. He can also sell it to a junkyard or donate it to a charity.
- What drivers can do if their cars are totaled? First, they should immediately contact their insurance providers and file a claim. After the claim is received an insurance adjuster will be dispatched to evaluate the damage. To get a fair settlement, drivers will need to determine the actual cash value of their vehicles just before the damage occurred using tools like Kelley Blue Book or by checking the prices of similar cars on the local market. If the car is financed, the financing firm will also have to be notified. If the policyholder believes the appraisal of his car's ACV is too low, they can negotiate the payout with their providers.
For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/
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