Erinn Dimond, WalletHub Writer
@Erinn.dimond
You get the insurance check when your car is totaled if you own the car outright at the time of the loss. If you financed your car and still owe money on the loan when it’s totaled, the settlement money will be sent directly to your lender. Any leftover money beyond the remaining balance of your loan will be sent to you.
Getting Your Insurance Check When Your Car Is Totaled
- Your policy and fault determine whether you’re eligible for a payout. If you’re not at fault for the accident, the other driver’s liability policy will cover your settlement. If you are at fault for a crash, you will need collision coverage to get a payout for the value of your car. If your car is totaled due to a natural disaster, vandalism, theft, or other non-accident damage, you will need comprehensive insurance for your car’s ACV to be covered.
- Your insurance provider must declare your car totaled before issuing the check. Depending on the state, your provider may either use a total loss formula or a percentage threshold to determine whether or not to total your vehicle.
- Your payout depends on the ACV. Your insurer will use the actual cash value (ACV) of your car from right before the accident to help determine your settlement amount.
- Your deductible will be subtracted before you get your check. The final total of the settlement has the deductible taken out, so make sure you’re comfortable with the deductible on your policy.
- Your check will be smaller if you keep your car. If you decide to keep your paid-off car, the insurance company will just deduct the salvage value from the total payout before issuing you the final check.
To learn more, check out WalletHub’s guide to totaled cars.
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