Total Losses

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Were you in an accident and have no idea how the following process works? Not sure what total losses, total loss payout, or a car value calculator are? Don’t worry, we’re here to break it all down for you.

Total losses, total loss payout, and a car value calculator. These can seem like confusing, stressful topics. But, that’s why Insurance Navy is here to help. We want to make sure that your claims experience is as smooth as it can be.

Sometimes, the cost to repair car damage is more than what the car is worth, or its actual cash value (ACV). This means that the car is a total loss. Moreover, whether a car is a total loss or not depends on a few things. These factors include:

The insurance company

The insurance companies must follow state laws. But, they may also set standards of their own. Make sure to stay up to date with your state’s policies. Because, this may help you with more situations in the long run.

State laws

To be a total loss, a car must have a specific percentage of damage. The insurance company will determine this once the claim is filed.

If your vehicle is a total loss, the insurance company must take possession of the car to prevent “chop shops.” There are only two situations where you can keep your car if it is a total loss in Illinois. Those situations are as follows:

  • Your vehicle is 9 years old or older
  • Your vehicle only suffers hail damage but is otherwise operable (not related to the accident) (625 ILCS 5/3-117.1)(b)(1)

The car’s condition

This is one of the most important parts of this entire process. The condition of the car is a key factor in determining whether something is a total loss or not. If a professional cannot repair the car safely, adjustors may also consider it a loss. The claims process doesn’t end here though.

We know that this is a lot of information to handle. Hopefully, this is making the whole thing seem less complicated to you. Keep reading to learn even more about the process to help you now or in the future. Next, we’ll breakdown what can happen when the car is considered to be a total loss.

If your car insurance company says your car is a total loss, then they will ask for the car’s title. Companies will also ask for the license plate, keys and contact information. After collection of the car, the company will work on determining the actual cash value of the car. The actual cash value of a vehicle is the current value after depreciation.

The holder of the policy may receive a full settlement. Yet, they may instead receive partial payment. This can lead to many different outcomes. In a full settlement, the owner will hand over the car to the insurance company.

This won’t be the same for a partial settlement though. In a partial settlement, owners have the option to salvage the car or sell the totaled car. They can also donate the car to a charity or use it as a tax write-off.

Lastly, if an owner chooses to salvage the car, they must get a salvage title to register and operate the car. But, not all insurance companies will provide insurance coverage for salvaged cars.

Look into your insurance policy to make sure you have coverage for salvaged cars. Unless, of course, you’d prefer to go in a different direction. As you can see, there are many different ways that the claims process can go following an accident.

That’s why we’ve created this guide, to simplify these stressful processes. We want to make sure you’re informed on the topics of total losses, total loss payout, and a car value calculator.

More Information

Do you need more information about constructive total loss or a total loss claim? Our agents and customer service team are here to help with your auto insurance needs. Call us today at 1-888-949-6289 or visit your nearest Insurance Navy location. For your convenience, Insurance Navy is open from 8 a.m. to 9 p.m. CST, 7 days a week.

We also have a strong presence on social media, so like or follow us on Twitter, Facebook, Instagram, or Pinterest. After that, we can keep you updated on helpful car loan tips, supplemental gap insurance, and much more.

Lastly, we also have blogs that may help you with any questions you have. For instance, our blogs cover many different topics. From how often you should shop for car insurance, to information on the Uber rewards program.

*Please review your own policy carefully for details on total losses. Total losses vary by insurance company.