Can You Insurance a Car After Total Claim
What Is Total Loss Car Insurance?
If you get into an accident and the cost to repair your vehicle is more than its actual cash value (ACV), your car insurance company will consider it a total loss. It's also a total loss if it can't be repaired at all.
Total loss car insurance means you have the right coverages to help you pay for a new vehicle if yours gets totaled. This typically means your policy will have collision insurance and comprehensive insurance coverages.
If your car is totaled and you have the right coverages, your insurer gives you a settlement. Sometimes, they'll take the car and sell it to a shop to get repaired or rebuilt. Then, the car will receive a salvage title to let potential buyers know that it sustained significant damage.
When Does an Insurance Company Total a Car?
An insurance company can consider a vehicle a total loss if:
- Repair costs are more than its ACV
- The damage amount meets a state's total loss threshold
- Damages exceed its pre-accident value according to a state's total loss formula
- The car can't be repaired due to extensive damage
Each state has car insurance laws that are unique when a vehicle is totaled. Some use a total loss threshold, which can vary between 50% and 100%. For example, in Arkansas, the total loss threshold is 70%. This means your car is declared a total loss if the damages are greater than 70% of its value. So, if your car is worth $6,000 and sustains more than $4,200 in damages, your insurer will consider it a total loss.
Other states may use a total loss formula. This means a car is considered totaled if its repair costs, plus the salvage value of the car, is equal or exceeds its value.
How Much Insurance Pays for a Totaled Car
How much insurance pays for a totaled car depends on the coverage you have in your policy. If you have collision and comprehensive coverage, your insurance company will pay you the actual cash value of your car if it's totaled.
If you finance your car, be aware that the amount you get from your insurance company may not be enough to pay off your car loan. That's because your car depreciates over time. If this happens, you'll have to cover the difference out of pocket. That's why gap insurance is important, because it can help pay off your loan if your car gets totaled and its actual cash value is less than your payoff amount.
How Does The Hartford Handle a Total Loss Car Insurance Settlement?
If you have a car insurance policy through The Hartford, we make it easy for you to file a total loss claim. If you get into an accident, follow these steps:
- File your claim.
- After you've filed, we'll send out a claims adjusters to inspect your car's damage.
- Then, we'll get in touch with you about how much you'll get in a settlement.
- If you accept the settlement, you can go and clean out your car and release it.
- You'll receive your settlement payment in about a week.
Our insurance claims specialists regularly receive positive reviews, so you can count on us to help you every step of the way.*
File a Total Loss Claim With The Hartford
If you get into an accident and have to file a total loss claim, we make it easy to do online or by phone. If you're an AARP® member, you'll call 877-805-9918. If you're not an AARP member, you'll call 800-243-5860.
Frequently Asked Questions About Total Loss Car Insurance
What Is Total Loss in Car Insurance?
If your car is a total loss, it means it costs more to fix the damages than it's worth. If this happens, you can either accept a settlement with your auto insurance company for the actual cash value or keep the car and repair it yourself if your state allows it.
How Does Total Loss Affect Insurance?
If your car gets totaled in an accident, it can increase your car insurance premium, even if you weren't at fault.
How Long Will Insurance Pay for a Rental Car After a Total Loss?
If you have rental car reimbursement coverage as part of your car insurance policy, then your insurer can help pay for a rental car costs after a total loss. The coverage amount will depend on your specific policy and limits.
Can You Insurance a Car After Total Claim
Source: https://www.thehartford.com/aarp/car-insurance/total-loss-car-insurance