Your vehicle is declared a total loss. Now what? Well, if you have Comprehensive coverage on your car, insurance companies provide customers with two options: surrender the car, or buy it back. Both options will pay the insured based off of the actual cash value of the vehicle, minus the policy deductible, as well as any state taxes and fees. The difference in the two, is whether or not the insured will keep the vehicle, and the amount received.
I want to surrender my vehicle.
Surrendering your vehicle would mean that the asset is released to the insurance company in exchange for its Actual Cash Value, less the deductible and any applicable taxes and fees. Once the insurance company has been notified that you would like to release the car to them, you will be expected to retrieve any personal belongings as soon as possible. Following the retrieval of your belongings, the insurance company will retrieve the vehicle from the shop of repair, and mail a check out to you.
I want to keep my car.
If you want to keep your vehicle, insurance allows what they call a “buy back,” where the insured essentially buys the vehicle back from the insurance company at salvage cost.
The good news about hail damage is it does not impact the mechanical side of the vehicle. And in some states, like Texas and Colorado, a vehicle totaled via hail damage still maintains a clean title. You will however, not be able to reinstate comprehensive coverage on the totaled vehicle until a receipt of repair is provided to the insurance.
With this option, not only does the customer get to keep their car, but they may receive a check for the Actual Cash Value, less the deductible, any applicable taxes/fees, and the salvage price of the vehicle. You can learn how to calculate your salvage cost by reading our blog post on how Total Loss Works.
If you decide to keep your totaled vehicle, and wish to repair it, you can speak to your repair facility to see what the repair cost would be. Just remember, that the entire amount of the insurance check, and possibly then some, will need to go towards the repair.
If you decide to keep your totaled car and do not wish to repair it, make sure to at least repair any broken or cracked glass to avoid safety issues. You will also want to repair any cracked paint so that the vehicle does not procure rust – which can be detrimental to a vehicle.
I have a loan or lean.
If the insured owes money on the car, the insurance company will put the money towards the lean. Any amount left over from the check will go to the insured.
If the insured customer owes more than the car is “worth,” and has Gap Insurance, than the Gap Insurance will kick in to help cover the remaining balance on the vehicle.
If the insured owes more than the car’s worth but does NOT have gap insurance, the insured is responsible for making arrangements with the lean holder to pay off the remaining balance.
Totaling the car that you love can be stressful and frustrating, and the best option when totaling a car will always depend on your specific situation and needs. Here at Discount Hail Repair, we provide a safe, transparent, and customer oriented environment where totaling your vehicle is our last resort. In the event there is no other option, it is our commitment that we advise the best course of action to fit your needs and lifestyle. If you’re worried about your vehicle totaling form hail damage, and are looking to take the next steps,
call 1-844-766-4245 today to book your free consultation.