Claims process for total loss

Total loss (or totaled) vehicle

A damaged vehicle is declared as a “total loss” when the estimated cost of repair exceeds 80% (in most cases) of the actual value. Claims process for total loss  is significantly different from minor claims and requires a bit more effort on the part of the insured. A total loss could be a result of a major collision or a fire accident, which increases the complication of restoring the vehicle for use. Most companies will consider your vehicle a total loss if the damage exceeds 80% of its pre-accident value. This percentage of loss varies based on the insurance company.

A few careful steps need to be considered while filing for a total loss claim in order to expedite the claims process so you can obtain your insurance compensation quickly.

Here is an overview of the steps you need to follow during the claim process.

• Intimate the claim to the insurance company immediately

  Total loss claims can at times take over a month to finalize and close. So, when a total loss incident occurs, it is important for you to act fast and notify the insurer. The insurance company plays a key role in starting the claim process as soon as they have been informed.

• Schedule the damage inspection

  Fix an appointment for the company appointed ‘adjuster’ to inspect mechanical condition of your car and determine the extent of damage. After the inspection, the ‘Actual Cash Value’ of the car is calculated by taking into consideration factors such as depreciation value, year of make and model. The value determined is the assumed market value of the car in its pre-accident state. If your vehicle is less than a year old, then the value would be calculated on a pro-rata basis, and the company will pay for a replacement model of an equivalent vehicle. You may also research the value of your vehicle to get a true indication of the final payout figure.

• Mail all the relevant documents

  Total loss auto accidents require you to file the paperwork and the vehicle title documents for arriving at the total amount of payout. In case of any loan on the vehicle, you must sign a power of attorney document to transfer vehicle ownership to the insurance company once the loan is paid off. Timely communication is essential for the claim process to run smoothly and you need to submit all details to the claims adjuster.

• Review and finalize settlement

  The adjuster will further contact you to review and accept the settlement before moving forward.

• Take your belongings and release your vehicle

  Clear all your personal belongings and allow your vehicle to be sent to the facility for salvaged total loss vehicles.

• Sign paperwork and receive payment

  Complete the remaining paperwork and sign the papers. You will receive your settlement amount in a matter of time.

The total loss coverage minimizes the financial burden of buying a new vehicle. So, it is prudent to compare insurance plans and choose the right policy suited to your needs.

Kindly note: The steps above give you a general idea of the total loss claims process. The process may differ as per your case.