What is the auto total loss process? Once you’re in a
accident, the insurance company must inspect the vehicle and determine if
the damage was substantial enough to declare a complete loss.
Most insurance companies will want to inspect vehicles
themselves. In most accidents, insurance companies have licensed body shops.
they write estimates and eventually issue payments based on that estimate.
However, when there is a potential for a total car loss, most insurance
companies want their insurance adjuster to inspect the vehicle.
The reason for this is the conflict of interest that arises
of the agreement between the insurance company and the body shop. body shops
They are in the business of fixing cars. They have a vested interest in citing the
repairs so that the car can be repaired and not declared a total loss of the car.
For all practical purposes, this means that you will be
waiting more time. It usually takes two to three business days for the body shop to
issue a repair estimate. If the claims adjuster or field representative has
to inspect and write your own estimate, then you will be waiting three to five
more days to reach your car location.
Before the adjuster leaves, he/she will present all
relevant information about your car (year, make, model and mileage) to a third party
party company This company is usually CCC
Information Services Group, Inc. CCC will make a preliminary report to
determine what your car is worth so the adjuster knows what the insurance is
company would be looking for if there is a total loss.
Depending on your state law and specific insurance
company, there will be a total loss of the car when the insurance company believes that
the cost of repairing the car reaches 70%, 80% or even 90% of its total value. This
It is always a good idea to ask the adjuster what threshold they use to
determined at total loss.
When the vehicle is being estimated for the total loss of the car
adjuster, this person will observe the condition of the vehicle. They
you will note how “clean” the vehicle is, what the exact mileage is, and what
equipment and options that the car has. All this information will be reflected in
the final evaluation of the vehicle.
The adjuster will then send the inspection report back.
to CCC. CCC will send a final report with comparative prices of the vehicles
in your local market. They will establish what the fair market value of the car is
is and what would be a fair settlement offer. For more information on how
contest this report visit:
http://www.auto-insurance-claim-advice.com/car-total-loss-2.html.
Next, the liquidator must determine who is the holder of the bond of
the vehicle is. If you have a car loan, the insurance adjuster must obtain it
information so they can contact the bank to determine how much is owed. There
are different requirements that insurance companies must follow. If the insurance
company you are dealing with is yours (you are claiming the total loss of the car
against their own insurance company), then they will be bound by the terms of the
policy, which 99% of the time requires them to pay the bank first. If you are
make a total loss against someone else’s insurance company (the person who
hit you), then this requirement does not exist (there is no real policy to be
bound by).
If you have a loan, then the insurance adjuster
ask the bank for a Letter of Guarantee. This letter is an agreement between
the bank and the insurance company that for the payment of x amount, the bank
will release the car title to the insurance company directly. East
The process usually takes four to five days.
If the amount you owe on the car is less than the
insurance company will pay for the total loss of the car, then the insurance company
will pay the loan amount and then write you a second check directly. if the loan
the amount is higher than the car’s total loss offer, then it will be on the upside
down your loan. You will be required to continue making payments even though the
the title of the car will be transferred to the insurance company.
Once you receive payment for your loss, you will be able to
go out and get another car. For more information on the total loss process and how
to protect your interest, visit:
http://www.auto-insurance-claim-advice.com