A Guide to Understanding the Insurance Claims Process for Totaled Cars

If you’ve been in a car accident recently, and your vehicle has been declared a total loss or “totaled”, it can be an overwhelming experience. You may have questions like: What is the insurance claims process? How do I get compensated for my totaled car? Do I need to file a claim with my insurer? Fortunately, understanding the insurance claims process for totaled cars doesn’t have to be complicated.

In this guide we will answer all of these questions and more so that you can navigate the process with ease. We will explain what it means to have a totaled car, how to determine if your vehicle is considered a total loss, how auto salvage works and what steps are involved in filing an insurance claim after totaling your vehicle.

By the end of this guide, you should feel confident about navigating through the insurance claims process for totaled cars. Let’s begin!

Call 502-804-5605 to Scrap a Totaled Car in or around Louisville, Kentucky.
Call 502-804-5605 to Scrap a Totaled Car in or around Louisville, Kentucky.

How Insurance Carriers Define a Totaled Car

First and foremost, it’s important to understand what a totaled car is. A totaled car is also known as a total loss vehicle, which is a vehicle that has been involved in an accident and the cost of repairs exceed the actual cash value (ACV) of the car. The actual cash value is determined by looking at factors such as year, make, model, mileage, and condition of the vehicle prior to the accident. In most cases when a totaled car has been declared, your insurance company will deem it as a total loss and compensate you for its ACV minus any applicable deductions like policy deductibles.

Auto Repair Estimates

The first step in understanding the insurance claims process for totaled cars is determining if your vehicle qualifies as a total loss. This typically involves getting estimates from repair shops or auto body specialists. If the repair costs exceed the actual cash value, then the car is usually considered a total loss. Once this is established, you can move forward with filing an insurance claim and being compensated for your totaled vehicle.

Filing a Claim With Your Auto Insurer

Now we need to discuss how to file an insurance claim for your totaled car. To do this, contact your insurer and provide them with all the necessary paperwork including the ACV estimates, repair quotes and any photos of the accident. They will then work with you to process a claim so that you can get compensated for your totaled vehicle. Once everything is finalized and you have received payment from your insurer, you can move forward with purchasing a new or used vehicle as needed.

Scrapping a Totaled Car at an Auto Salvage Yard

Now that we have determined that your car is indeed a total loss, let’s talk about auto salvage. Auto salvage involves selling off any parts of a totaled vehicle that are still usable or recyclable and reusing them to repair other vehicles. This helps save time and money when repairing cars from accidents instead of having to buy new parts every time. Sometimes, Cash for Cars companies and junk car buyers in Louisville are willing to purchase entire vehicles or even parts for cash on the spot. Some auto salvage lots will even tow your junk car for free.

Be Sure to Contact Your Insurance Carrier to Confirm Policy Details

We hope this guide has been helpful in understanding the insurance claims process for totaled cars. Do note that every situation is different and there may be additional steps involved depending on where you live. If you have any questions about filing an insurance claim for a totaled car, don’t hesitate to reach out to your insurer for more information.

Are you interested in selling your totaled vehicle for a high amount of cash in the Louisville area? Contact GC’s Junk Cars at 502-804-5605 to speak with a trusted Indianapolis junk car buyer for details on how to get started! We offer free junk car removal and accept all old or broken auto parts!

Related Posts:

Do I Have to Repair My Wrecked Car?
Navigating the Aftermath of Totaling a Car: What You Need to Know
These 7 Things Will Slowly Total Your Car Overtime

Do I Have to Repair My Wrecked Car?

After you get into a car accident, you will likely make a claim with your auto insurance carrier. But does this automatically require you to repair your vehicle? Can you choose to not repair your car after an insurance claim accident? If you are asking these questions, continue reading to learn what you need to know about auto accident insurance claims and car repairs.

Totaled Car Buyers Louisville Kentucky 502-804-5605
Totaled Car Buyers Louisville Kentucky 502-804-5605

Auto Loans and Insurance Continuation

When making an auto accident insurance claim, you will be subjected to a few requirements, especially when it comes to repairs. If you are interested in continuing with your comprehensive or collision coverage, the insurance carrier will require you to repair your vehicle. That is because all insurance companies refuse to cover a vehicle that has endured ambiguous structural and mechanical damages.

Insurance companies also mandate repairs after a wreck if you are still paying off an auto loan on the vehicle. In fact, your lender may also require you to have the vehicle repaired, and by one of their own approved auto repair providers.

You Are Required to Repair Your Car If:

☑ You are still paying off an auto loan.
☑ There is a lien on your car.
☑ You want to stay insured.

Opting Out of a Claim

If the vehicular damage is minor enough that is does not interfere with the safety, performance, or efficiency of your car, or you do not care about aesthetics, you can choose to forgo making a claim through your insurance carrier. If you want, you can make the repairs to your vehicle on your terms, when it is economically available to you. But if you decide later on to take your car in for repairs, you will have to pay for the work out of your own pocket.

Doing Your Own Repairs

If you own your vehicle in full, you might be allowed to repair the damages yourself, that is, if you are handy in auto body work and automotive mechanics. Just be sure DIY auto work won’t void any of your current coverage. Check your policy first to see of you are allowed to perform your own repairs. If there is a lien on your car, you will not be allowed to repair it yourself.

Is your vehicle uninsured and simply too damaged to bother with repairs? Great news! Just contact GC’s Junk Cars at 502-804-5605 to sell your junk car in Louisville Kentucky for cash on the spot. We provide free junk removal too!

Related Posts:

These 7 Things Will Slowly Total Your Car Overtime
What to Do With a Totaled Car if You Do Not Have Collision Coverage
Car Wreck Insurance Myths to Beware Of

What to Do With a Totaled Car if You Do Not Have Collision Coverage

So, you’ve just totaled your car, and now you are panicking because you do not have comprehensive, nor collision insurance coverage. But that is okay! There is still a viable option for you to earn back cash for your total loss vehicle so that you may apply it toward a new car purchase. Continue reading to learn what to do with a totaled car that was not coverage by comprehensive or collision coverage at the time of the accident.

Sell a Totaled Car in Kentucky 502-804-5605
Sell a Totaled Car in Kentucky 502-804-5605

Totaled Cars and Total Loss Vehicles

A total loss vehicle is the same thing as a totaled car. It simply means that a vehicle so far damaged, it is not worth the cost of repair. But this is lamest terms. There are actually very specific formulas used by automotive insurance companies to measure the pre-crash, and post-accident depreciated value of a wrecked or damaged vehicle. Basically, a vehicle is deemed totaled by an insurance company if the vehicle is so damaged that the cost to repair it exceeds its pre-accident value, which is the value it would have been worth prior to the damage incurred.

For instance, if a 2005 F-150 truck has a pre-crash worth $7,000 prior to an accident, but the cost to repair the damages in the accident are higher than seven thousand dollars, the insurance carrier would strike it as a total loss, or totaled vehicle.

In another example, if a 2020 C-300 Mercedes Benz is valued at $53,000, but is driven into a lake, sinks to the bottom, and must be recovered by a towing crane service, you can bet that the whole car is a loss. In this case, the insurance company would deem it so.

More specifically, the cost to repair a vehicle must exceed 50% of the vehicle’s pre-crash value in order for the state to require an insurance company to label it a total loss and issue it a salvaged title. Most states allow insurance companies to make this determination themselves, while some states set a specific law requiring insurance companies to follow the 50 percent total loss rule.

How to Earn Money Back for an Uninsured Totaled Car

If you had comprehensive or collision insurance coverage at the time of the accident, and your car is now totaled, your insurance company will issue you a check for the pre-crash value, minus your particular deductible. So, if your deductible is $1,500 and the precrash value is seven thousand dollars, you can expect the insurance company to pay you $5,500 in total. If you choose to keep your totaled car, the insurance company will deduct the scrap value as well, paying you out even less.

If you did not have any insurance coverage, or only liability insurance coverage, at the time of the accident, you will not be making a claim for compensation; that is, unless the accident was someone else’s fault, in which case, you could sue their insurance for your damages. So, for those who have wrecked their cars beyond repair, and have no insurance money coming in, what can they do? The answer is to sell a totaled vehicle to an auto salvage yard for an instant cash return. You can get paid the scrap value of your vehicle.

Where to Get Paid Instant Cash for Your Totaled Car in Kentucky

Call GC’s Junk Cars at 502-804-5605 to sell a totaled car in Kentucky for instant cash on the spot. We accept all make and model vehicles, regardless of age or condition! There is never a middleman, which means you walk away with more cash in your pocket. Furthermore, we will dispose of your vehicle according to all Kentucky EPA regulations. You can rest assured that your car will not have a negative impact on our environment. We also offer free towing haul away!

Louisville Junk Car Buyers 502-804-5605
Louisville Junk Car Buyers 502-804-5605

Will Keeping My Totaled Car Reduce My Insurance Claim Payout?

After totaling a car, your thoughts are likely all over the place. From medical attention and financial responsibilities, to time of work, kids, family, and more, the aftermath of wrecking a car can be quite overwhelming. But the one thing you should not have to concern yourself with is your automotive insurance claim. When you signed your policy, you agreed to a specific pecuniary procedure in the case that your car is deemed a total loss after an accident or damage.

So, when you are considering the possibility of keeping your car after you total it, your insurance carrier should already have a plan for that option. However, keep in mind that there could be some financial disadvantages to doing so. Furthermore, it might not be an option at all depending on your particular insurance policy limits and restrictions.

Continue reading to learn more about keeping a totaled car and what it could mean in terms of collecting a payout through an automotive insurance claim.

Louisville Junk Car Buyers 502-804-5605
Louisville Junk Car Buyers 502-804-5605

What You Need to Know About Car Insurance Claims and Total Loss Vehicles

In standard automotive insurance policies, if a claimant with full coverage wrecks their vehicle, the insurance company will provide payment to repair the damages. If the insurance company decides that a claimant’s car is totaled, they will officially deem it a total loss, which means the cost to repair the damages exceeds the current cash value of the vehicle. In this case, the claimant with full coverage will receive a payout for its value, minus depreciation. In some cases, an insurance policy does not allow a claimant to keep a totaled car at all, and must physically surrender it to them prior to receiving a check.

If you wish to keep your totaled car, the first question you might have is, “Will I get paid less for it?” The answer is an unequivocal and resounding yes. This makes sense, otherwise insurance companies would have to operate on an entirely different business model. How much less you get from your insurance company will depend on several factors, which you will have to read in the fine print of your policy. Most often, it is at least 50% less, which is a significant deduction.

Where to Sell a Totaled Car in Louisville, Kentucky

Call GC’s Junk Cars at 502-804-5605 to sell a junk car in Louisville and its surrounding counties, today! We accept all make and model vehicles, regardless of age or condition! There is never a middleman, which means you walk away with more cash in your pocket. Furthermore, we will dispose of your vehicle according to all Kentucky EPA regulations. You can rest assured that your car will not have a negative impact on our environment. We also offer free towing haul away!

Louisville Junk Car Buyers 502-804-5605
Louisville Junk Car Buyers 502-804-5605