Total Losses

Your vehicle is considered a total loss when the cost of repairs exceed the value of the vehicle. Once an insurance company has deemed your vehicle a total loss they will need to settle your claim by making you a settlement offer. The insurance company will owe what the value of your car was before the accident. This is the ACV (actual cash value). This value is based on comparable vehicles located in your market place and is usually facilitated by a market survey. This survey shows average prices on various makes and models with similar options, mileage, special features, and overall condition and provides a foundation for the value of your vehicle and supports their settlement offer. Keep in mind that they can and probably will deduct for any old unrelated damage and vehicle wear. The sources used to determine their offer can usually be made available to you upon request.

The NADA (National Automobile Dealers Association) used car guide, Kelly Blue Book, newspaper classifieds and dealer quotes are all sources of determining the ACV.

The insurance company does not owe to pay your vehicle loan off if it is a total loss. You might want to check into additional coverage's on your policy that may cover this. Example: GAP insurance

You can discuss with the insurance company the options regarding retaining the salvage on your vehicle if there is no lien against it. The insurance company would subtract their salvage value from the settlement and allow you to retain the vehicle. You will be required to sign a Owner Retention of Salvage form.

If your vehicle is at a facility where storage charges are accumulating and you have been notified that your vehicle is a total loss, you should release your salvaged vehicle for pick up by the insurance company or have it moved to a storage free facility. The insurance company will not pay additional storage charges after you have been notified and it is your responsibility to mitigate your loss.

The insurance company will require a POA (Power of Attorney) and a GOT (Guarantee of Title) from you and the lien holder before the payment of your settlement can be made. The vehicle title will be sent to the insurance company from the lien holder.