Business Quote Homeowners Quote Automobile Quote Life & Health Quote

f you’re in a car accident or have a vehicle damaged during an incident of vandalism or theft and the cost to repair the car exceeds its value then the insurance company will declare your car totaled.

The way that you’re paid by an insurer for a totaled vehicle will depend on many things. The first is whether you have the appropriate coverage. If you do not have collision or comprehensive coverage then you may not receive any benefit when your car is totaled.

Actual Value versus Agreed-Upon Amounts

If you have the appropriate coverage, your insurance company will either pay you the vehicle’s actual value, which includes depreciation and is based the value shown in a resource book such as Kelley Blue Book, or they will pay you an agreed-upon amount that is stated in your policy. You must read your policy in order to find out if you have one that will pay actual value or an agreed-upon amount and remember, while all policies have limits for collision and comprehensive coverage, those limits don't determine what you will definitely receive, just the maximum that you can possibly receive.

If the amount that your insurance company reimburses you for the totaled vehicle is less than the amount you owed on the vehicle, you may have to wrap the remainder of your loan into a new auto loan or pay it off separately from your new vehicle loan. Either way, you will more than likely still owe the lender the difference between what your insurance company gives you and what you owe them.

The Policy Deductible and Salvage

You might be wondering how your deductible fits into this scenario. After determining the value that they will pay for your totaled vehicle, the insurance company will subtract the amount of your deductible and send you a check for the difference. Because auto insurance deductibles are per incident not per year, they will deduct the deductible even if you paid out for a prior accident that year.

After the vehicle’s been declared totaled and you’ve been reimbursed, the insurance company has basically purchased the salvage from you and can now sell off parts or sell it whole at an auction.

We can help you decipher your Dallas auto insurance policy and make sure that you’re covered the way that you want to be, through a policy you can afford issued by a highly rated insurance company. Give us a call today to set an appointment.

Posted 8:34 PM

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010

View Mobile Version
Quick Links Our Latest Blog Featured Service
Make a Payment
Employee Directory
Our Reviews
Mechanical Inspection
Featured Service
Need help assessing your vehicle's repairs? Let us evaluate it for you.
read more... learn more...
Home|Locations|Get a Quote|Employees|Make a Payment|File a Claim|Testimonials|About|Contact
dotted divider
Mid-Cities Location
7716 Glenview Dr.
Richland Hills, TX 76180
Phone: (817) 589-0006
Fort Worth Location
5840 Jacksboro Hwy
Fort Worth, TX 76114
Phone: (817) 626-3339
Mansfield/Arlington Location
1209 N Highway 157
Mansfield, TX 76063
Phone: (817) 453-5524
Serving the Dallas-Fort Worth area in Texas.
© Copyright 2017. All rights reserved. Powered by Insurance Website Builder
Social Networking Review us on Google Blog RSS Feed Follow on Twitter Connect on LinkedIn Like us on Facebook