What happens if my car is declared completely lost in the USA

Insurers often use a number of factors to determine the value of your vehicle at the time of a total loss accident, such as its age, condition, mileage and resale value, as well as the selling price of similar vehicles in your area.

If your vehicle has been involved in a severe or serious motor vehicle accident, i.e. the damage caused to it as a result of an accident or natural disaster, has affected its ability to start or move on the streets without endangering the life of the driver or others, the insurance companies will declare the vehicle as total loss.

As a rule, A car is considered completely lost when the cost of repairing the car exceeds the value of the vehicle.

We must remember that the laws are different in every state of the country, and what defines a car as a total loss may vary depending on where you live.

Only one traffic controller, a person working in an insurance company and evaluating the state of damage can declare the vehicle completely lost, and for the company this means that the cost of repairing the insured vehicle exceeds the value of the vehicle itself. Therefore, it is a loss and the driver is compensated for his loss.

What should I do in case of an accident with total damage?

If you are involved in a car accident, there are a few basic steps you need to take before and after your vehicle is considered wrecked:

– Contact your agent and start your insurance claim.

– Your insurer will determine if the vehicle is a total loss based on damage and repair costs.

– Your insurance company will pay the actual cash value of the entire vehicle less your deductible for your comprehensive or collision coverage.

What if the total loss was not my fault?

A total loss can be caused by a natural disaster, such as a tree falling on your parked car and the insurer claims it's total. If you have full coverage on your auto insurance policy, it will most likely reimburse you for the actual cash value of your car (minus your deductible).

If your vehicle is involved in an accident caused by another driver, your collision insurance may take effect first. However, your insurance company may claim damages from the other driver's insurance company. In some cases, this may mean that you will also be reimbursed for the deductible that was deducted from your insurance payment.