Getting into a minor car accident can be stressful, but if your vehicle is declared a total loss, it can add another layer of uncertainty. By understanding how insurance payouts work in these situations, you can be confident in your decisions throughout the process. Located in Chandler, AZ, the San Marcos Insurance Group offers comprehensive auto insurance coverage options to keep you protected on the road.
What Does It Mean When a Car Is Totaled?
A car is regarded as “totaled” when the repair costs exceed a specified percentage of the vehicle’s actual cash value (ACV), about 70 to 80 percent. In such cases, the insurance company deems the vehicle beyond reasonable repair and offers a payout.
Steps to Take If Your Car Is Totaled
- File an Insurance Claim – Contact your insurer to report the accident and begin the claims process.
- Vehicle Assessment – The insurer will inspect your vehicle to determine if it’s a total loss.
- Review the Payout Offer – The insurance company will offer a settlement based on the car’s ACV before the accident.
- Negotiate If Needed – If you believe the offer is too low, provide evidence such as recent maintenance records or comparable car listings.
- Settle Any Remaining Loan – If you have an outstanding auto loan, the payout may go directly to your lender. If the amount is less than what you owe, gap insurance can help cover the difference.
Stay Protected on the Road with Auto Insurance
If your car is totaled, it’s important to understand your insurance coverage and payout process. If you’re located in Chandler, AZ, or the surrounding areas, our team at San Marcos Insurance Group can help. Contact our office today.