How does American Family determine a total loss?

When your car is a total loss, it means the cost to repair the car exceeds the value of the car. If your car is declared a total loss your insurer may replace your totaled car with an equivalent one or issue payment for the actual cash value of the totaled vehicle.… read full answer

Once you file a claim, the insurance company will determine whether the car is a total loss. Depending on your state’s laws, your car may be totaled if the cost of repairs exceeds a certain percentage of the car’s value, such as 75%. If your state does not have a specific total loss threshold, your vehicle will be considered a total loss if the cost of repairs plus the salvage value is greater than the car’s actual cash value (ACV).

Insurance Payout for a Total Loss Claim

For a car that was totaled by an accident, you will be reimbursed by the other driver’s property damage liability insurance if they were at-fault or your own collision insurance if you caused the wreck.

If the damage was caused by something other than an accident, like vandalism or a natural disaster, you can receive a total loss payout from your own comprehensive coverage.

What to Do If Your Car Is a Total Loss

• If you think the insurer undervalued your car, you can present evidence and negotiate.

• You will likely need to send your insurance company your keys, remove your license plates and personal items from the car, and sign over the title.

• If your car was leased or financed and you have gap insurance or loan/lease payoff coverage, file a claim.

For more information, check out WalletHub’s complete guide to totaled cars.

You can fight an insurance company over a totaled car’s value by sending the insurer a counteroffer along with evidence justifying your car’s value. If the insurance company does not raise its offer, you can contact your state’s insurance regulator, seek arbitration or file a lawsuit.

How to Fight an Insurance Company Over a Totaled Car’s Value… read full answer

1. Receive a settlement offer from the insurance company.
2. Gather evidence, including an independent appraisal, the car’s sticker details, prices for comparable vehicles, photos of the car before the accident, and receipts for any features you added.
3. Send this evidence and a counteroffer to the insurance company.
4. If the insurance company does not agree to your counteroffer, contact your state’s insurance regulator to request help.
5. Ask your insurance company for third-party arbitration if necessary.
6. File a lawsuit as a last resort.

It’s important to remember that insurance companies are only required to pay a car’s actual cash value (ACV), not the cost of a replacement car or the original price you paid for the vehicle.

Fighting an Insurance Company’s Decision to Total a Car

Car insurance companies and state laws determine when a car is declared a total loss, so it is unlikely that you will be able to fight your insurer if they decide your car is totaled. Unfortunately, you can typically only fight your insurer about your vehicle’s value.

However, if your insurance company declares your car a total loss in violation of your state’s laws, it is important to contact your state’s insurance regulator for help. They can investigate the situation and see if the insurer is acting in bad faith.

To learn more, check out WalletHub’s guide to totaled cars.

If your car is totaled and you’re not at fault, you should file a claim with the at-fault driver’s insurance company and report the accident to your own insurer as well. The other driver’s property damage liability coverage will reimburse you for your car’s actual cash value up to their policy limits. … read full answerActual cash value, or ACV, is the amount the car was worth immediately before the accident.

Claim Options if Your Car Is Totaled but You're Not At-Fault

In the event that the other driver does not have insurance, you can file a claim with your uninsured motorist or collision coverage, if you have it. You can also file a collision claim if the other driver refuses to admit fault. In this case, the insurance companies will eventually determine who is responsible. Then, your insurer will recoup the cost of your collision claim and deductible in a process called subrogation.

How Insurance Companies Determine if Your Car Is Totaled

Insurance companies decide if a car is totaled by comparing the cost of repairs to the car’s value. Exact formulas vary by state and insurance company. However, it’s worth noting that repairs are often more extensive than they appear, and even a small accident can sometimes total a vehicle.