What Are Your Options If Your Car Is Declared a Total Loss?
A car has gone on to become one of the most vital things that a household needs to have. Gone are the days when they were considered a luxury as they have become an essential part of every family. Taking care of your car is an important thing for every owner.
Purchasing a car insurance is one of the things you must do as a car owner. Although there are different ways in which you can have your car insured there are no options for you to avoid taking an insurance for the car you possess.
If your car is damaged very badly in an accident there are chances that it might be deemed as a total loss by your insurance provider. You have a few options on the table if your insurance provider has declared your car to have been totalled.
What is Total Loss?
An insurance service provider considers it a total loss when the car is either lost or damaged beyond repair. There are also chances for this scenario when the repair charges tend to go beyond the current cost of the car.
Despite this scenario being rare it still is possible in certain cases. If your car ends up in a serious accident within 1 year of you purchasing a new car then you may obtain a replacement. However, it is not the case if the car is older than 1 year old or when your existing car insurer do not have this benefit.
Reimbursement of the Value
The car owner may get a reimbursement of the current value of the car if it considered total loss. In these cases, the usual repair cost is greater than the value of the car. However, there cases that may often differ from one another. Please check with your car insurance agent before you go ahead to proceed with the coverage.
You may also be allowed to retain your car, repair it, and end up using it. This is only possible if the car insurance provider agree to the same. At times it may also be possible depending on the clauses of your insurance agreement.
Even if your outstanding loan on the car is greater than the current value of the car you still only get paid as much as its value. It may be a good idea to discuss with your adjuster and car insurance provider about the pros and cons involved in any possible scenario.
This way you can ensure that you are only getting the best value for your damaged or lost car from the car insurance provider.