Will my Policy Pay for my Car if It is Totaled?

Getting into a car accident can be stressful enough on its own, and dealing with the aftermath can sometimes be just as bad. This is particularly the case when your car has be totaled and you are dealing with getting a settlement and trying to find a new vehicle. One thing that you may be wondering in this case is what your insurance company is actually going to pay you, and if this will be enough to help you get a car that is similar to the one you had.

What your insurance company will pay when your car is totaled is going to depend on a few things. First off, you should know that as long as you policy is current and you've been paying for bills each month, you should be able to make a claim and get some money for your car, easing the process by having the proper policy documents. However, what you get will be up to what kind of coverage you have and what the actual cash value of your car is. Your provider is going to have to determine this before any type of settlement can be made.

Understanding Actual Cash Value

If your car is totaled in an accident, then your insurance provider is most likely going to pay you for the actual cash value of your vehicle. This is something that will be carefully calculated by your adjuster after your accident has occurred. In order to come up with this number, your adjuster is going to have to carefully consider some things. For one thing, he or she will need to carefully look at the body of your car, it's current mileage, the interior, the exterior, as well as your tires. If you have added anything to your vehicle, this will have to be looked at as well. If you can provide some receipts for any of these changes you have made, then this will move things along more smoothly.

Your insurance claims adjuster is going to need all of this information to determine what your car was like before the accident. He or she will then do some research to see what cars in similar condition are being sold for near where you live. This information will then be used to determine what the actual cash value of your vehicle is. This is the amount of money you will be offered when your car is totaled.

Sometimes, drivers do not agree with the figures that their adjusters come up with, and this can be a problem. If you believe that your car is worth more, then you can have another impartial adjuster take a look at it. This is going to cost you money though, and you may even have to consult a third party if the sums that the adjusters come up with are very different. If you don't want to take on this extra expense, then you might want to just go with what your provider's adjuster says.

Getting Gap Coverage

If you are wondering if your policy will pay for your vehicle if it is totaled, then you may want to get gap coverage and some auto insurance estimates from multiple insurers. This is especially useful for those who have loans on new vehicles. New cars tend to depreciate very quickly and this can mean that you will owe more on them than they are really worth. A gap coverage policy will make up for the difference in what you owe on the car and what the insurance company will actually pay you for it after it is totaled.

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