How to Handle a Total Loss of Your Vehicle
Many of us mistakenly believe that a vehicle is only written off when it is involved in a serious accident, such as a seven-car pile-up or hitting a fire hydrant head-on. In reality, even minor incidents such as fender benders or a car flooding are all it takes for a vehicle to be written off as a total loss. If this is the situation you are facing, here is what you should know about a total loss car and how it impacts your auto insurance in Vancouver, WA.
What is a total loss?
If your insurer considers the cost of repairs to be uneconomical, your car will be classed as an insurance write off. This means that the cost to repair your vehicle exceeds the total value of your car.
What is the process of a total loss claim?
- Firstly, find your vehicle’s title. The title is required to process a total loss vehicle. Make sure you find this document and keep your auto documents organized so that you can move forward with the settlement process quickly and efficiently.
- Know your lienholder. A lienholder is a financial institution that has either leased a vehicle to you or given you money on loan to purchase the vehicle. The lienholder’s information is important to gather as they should know about the incident and how the vehicle has been written off because they have an insurable interest in the vehicle. When a vehicle is deemed a total loss, the lienholder needs to be notified and they will provide a ‘letter of guarantee’ which will state what the current payoff is for the loan. If you have gap insurance, your coverage will help you pay for the remaining debt you owe.
- Send off completed paperwork quickly. Total loss auto accidents can require a significant amount of paperwork. An agreement needs to be reached on the payout amount of the totaled vehicle. Be sure to mail out your documents as promptly as possible so that the claims process can move forward quickly.
Remember to cover your new set of wheels with a reliable auto insurance policy. Contact Action Insurance Group who can help you find reliable coverage for the right price.
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