If you are in a wreck and think that your car is totaled there are things you need to do. If you nor anyone else was injured in the accident, call the insurance company immediately after notifying the police. Your insurance company will determine what your car is worth to get the process started. Below is more information about this so you can understand it better.
Actual Cash Value of Your Car
If your car is totaled by your insurance company they still have to pay you the actual cash value (ACV) for your car. The insurance company will inspect the car noting all features and options. If they can tell, they will write down the condition of your car before you were in the accident. For example, if there are areas of the car that were not damaged, including the interior and exterior, this will show them the condition.
The insurance company will need to know the year, make, and model of your car, any upgrades you have made, and the current mileage. Your insurance company will hire a third party to determine the ACV of your car for you. The third party will consider the information above. The company will want to know your zip code because where you live plays a role in how much your car is worth. In many cases, the insurance company will ask for two third parties to value the car.
Still Owe on Your Car
If your car is not paid off and you still have a lien holder, the insurance adjuster will need to know this information. They will contact your lender to determine the exact amount you owe to pay your car off. In most cases, the insurance company will pay the lender first and then pay you if there is any money left.
The insurance adjuster will contact your lender and ask them to send a Letter of Guarantee. This is an agreement between the insurance company and the lender that the dollar amount of the car is agreed upon. Once the lender is paid, they will send the title to the insurance company.
If you owe more on your car than what it is worth, you will still have to make payments until it is paid off even if it is totaled and the car is no longer yours. If you do not pay, it will go against your credit and the bank or lender may sue you.
Talk with your insurance company about this information and they can give you more information. For more information, contact companies like Chicago Auto Appraisers.