Total Loss Series: How Do Claims Agents Calculate Total Loss?
Posted in Auto Insurance
July 30th, 2009
Continue to Chapter 3: Repair and Cash Value In Depth >>>
Total Loss: Chapter 2 of 6
Claims agents will send out an adjuster to calculate the cost to repair your vehicle and assess its current market value, ultimately determining whether your car will be a total loss based on a master calculation.
Contacting Your Agent
Following an accident you need to call your insurance provider to alert them of the situation so they can start the insurance claim process. They will ask for all the viable information regarding the scenario.
Total Loss Calculations
That information is shared with your claims agent, who will then compare the cost of the repair with the actual cash value of your vehicle. If the cost of repairing the damage on your vehicle exceeds the value of your car then your car will be declared a total loss. Some of the factors taken into consideration are:
- Car type
- Mileage
- Options
- Condition
- Age
In return for a cash payment from your car insurance provider, you will need to sign over the title of your vehicle. Your claims agent will mange the entire process for you.
Learn as much as possible regarding your rights so that you are as involved as possible in what happens with your car, especially if it has sentimental value to you.