What is total loss in car insurance?
If you have been in a car accident, you may have heard of total loss. But what does it exactly mean? Total loss occurs when the cost of repairing your vehicle after an accident is higher than the market value of the vehicle. In this case, the insurer will pay the market value of the vehicle, which is known as “total loss indemnity.”
How does the insurer determine the market value of your vehicle?
To determine the market value of the vehicle, the insurer considers several factors such as the brand, model, year of manufacture, mileage, and general condition of the vehicle before the accident. The insurer may also use online tools that compare the selling prices of similar vehicles in the same geographical area.
How much does car insurance pay for total loss?
The amount that car insurance pays for total loss varies depending on the policy you have purchased. Generally, the indemnity for total loss is the market value of the vehicle at the time of the accident, minus the deductible on your insurance policy. If the market value of the vehicle is less than the deductible, then no indemnity will be received.
What happens with the return of the insurance policy after total loss?
After the insurer pays the total loss indemnity, the insurance policy is canceled, and you are no longer entitled to receive any return. Therefore, it is important to keep in mind that once you have used your insurance policy for a total loss, you will have to purchase a new policy to be covered in case of future accidents.
In conclusion, if your vehicle has suffered a total loss, the insurer will pay you the market value of the vehicle, minus the deductible on your insurance policy. It is important to note that once you have used your insurance policy for a total loss, you will not be entitled to receive any return. If you have any doubts about the total loss process in your car insurance policy, we recommend that you consult withwith our customer service experts at 7139247727
