As a motorist in Canada, it’s essential to be aware of the risks of collisions, even if you’re a safe driver. Accidents can happen due to the actions of others, and if you’re involved in a serious accident where your car is destroyed, it can be a stressful and overwhelming experience.
In such a situation, it’s crucial to follow the necessary steps to ensure that you’re taking care of yourself and any passengers involved in the accident.
Collisions can happen to anyone, and when they do, it is essential to know what to do
next. If you find yourself in a situation where your vehicle is in such a bad way, it is crucial to take the necessary steps to ensure that you and your passengers are safe, and the process of dealing with your insurance advisors is as smooth as possible.
Today’s article will provide you with the necessary information and steps to take when your car is totalled.
From reporting the accident to your insurance provider to removing personal belongings from your car, this post will guide you through the process, so you don’t have to navigate it alone.
Afterward, feel free to compare different car insurance on https://www.surex.com/insurance/auto-car and save hundreds of dollars per year on average.
What To Do When Your Car Has Been Totalled?
With a car totalled, it doesn’t mean that your savings are gone.
There are several factors that Canadian motorists should consider, such as the ones above.
First of all, when your car is totalled, there are a few basic steps to take:
-
Understanding Total Loss in Canada
When your car is totalled, it means that the total cost of repairing the damages is more than the actual value of the car. In Canada, the definition of a total loss varies from one province to another, but most provinces use a threshold of 70% or more of the vehicle’s value as the cut-off point. When the cost of the work exceeds this threshold, the vehicle is deemed a total loss.
-
Contact Your Insurance Advisor
After a collision, your first step should be to contact your insurance advisor. Your advisor will guide you through the process of making a claim and will also explain your policy limits and deductibles. They will also assign a claims adjuster to assess the damage to your vehicle and determine whether it’s a total loss or not. If it is a total loss, they will provide you with the actual cash value of your car minus your auto insurance deductible.
When Your Car is Totalled: Negotiating a Settlement
Once your insurance carrier has assessed the damage to your car and determined that it’s a total loss, they will provide you with a settlement offer.
For those who don’t know, the actual cash value of a vehicle is the fair market value of a vehicle at the time of a collision or accident, taking into account factors such as condition, mileage and the age of the vehicle.
-
Negotiate
While the settlement offer may seem final, it’s important to know that you have the right to negotiate. You can provide evidence to support your case, such as receipts for recent repairs, to increase the settlement offer. You can also research the value of your car online and provide evidence of comparable car sales in your area for a higher price.
When negotiating a settlement offer, it’s important to keep in mind that your insurance advisors are looking to settle the claim for as little as possible.
-
Stay Calm
Therefore, it’s essential to remain calm, professional, and persistent throughout the negotiation process. Start by presenting your evidence and explaining why you believe the settlement offer is too low. Be prepared to counter any arguments the insurance company may make and continue to negotiate until you reach a mutually acceptable settlement.
-
Assess the Value
It’s also important to consider hiring an appraiser to assess the value of your car. An independent appraiser can provide a more accurate assessment of your car’s value and provide additional evidence to support your case.
In some cases, you may also be able to negotiate for additional compensation for other losses, such as rental car expenses or lost wages. Be sure to document any expenses related to the accident and provide them to your insurance provider when negotiating a settlement.
Overall, negotiating a settlement offer can be a complex and sometimes frustrating process. However, with the right evidence and approach, you can increase your settlement offer and receive fair compensation for your totalled car.
When Your Car is Totalled: Understanding the Salvage Process
When your car is deemed a total loss, your insurance advisors may take possession of the vehicle and sell it to a salvage yard.
The salvage yard will then sell the usable parts of the car or repair it and sell it as a rebuilt vehicle. If you decide to keep the vehicle, you may need to obtain a salvage title, which can be more difficult to insure in the future. It’s important to understand the salvage process and the potential implications before deciding whether to keep the vehicle or not.
When Your Car is Totalled: Considering Gap Insurance
If you have a car loan, it’s important to consider gap insurance when your car is severely damaged. Gap insurance is designed to cover the difference between the actual cash value of your car and the amount you owe on your loan.
Without gap insurance, you could end up owing money on a car you no longer have. While gap insurance is an additional cost, it can provide valuable protection in the event of a total loss.
Be sure to speak with your insurance advisor to see if gap insurance is a good option for you.
What To Do When Your Car is Totalled: To Conclude
Being involved in an accident and having your vehicle destroyed can be a stressful experience. However, by following the steps outlined in this guide, you can navigate the process with ease.
Remember to contact your insurance advisor, negotiate your settlement offer, and cancel your registration and plates.
By doing so, you can get back on the road in no time. As always, if you have any questions, reach out to your insurance advisor for assistance.