You were involved in a major accident and your vehicle is now badly damaged. Once you’re sure everyone is okay, you may be worried about what to do after your insurance company considered your car a total loss, meaning it would cost more to repair than simply pay you the book value. What happens next?
You Will Get Paid
If you had physical damage coverage in force at the time of the accident, your insurance company will pay you for the value of the vehicle less any deductible or amount owed on a loan if it was financed. This is known as indemnification, or simply making you financially whole after the loss, and typically is paid to you with a check.
Your Car Will Get Fixed or Salvaged
Just because the insurance company calculated that it would be too costly to repair your car doesn’t mean you can’t try. If you are able to do the work yourself or know someone who can do it for less, that’s still an option depending on your state’s laws. However, you’ll need to show proof that the vehicle was fixed before you can obtain a clean title so the vehicle will be legally allowed back on the road. If it is too costly or beyond repair, places like auto services and salvage Saint Louis MO will pay you for your car and may even haul it away.
You Need To Purchase a New Vehicle
With the proceeds from your insurance check, you can choose to replace it with a vehicle of similar year, make and model to your original car for roughly the amount you received. Another option is to purchase a new vehicle using your claims money as a down payment. The good news is that once any outstanding liens are satisfied, it is up to you how you apply the insurance payout.
Having a car accident is stressful and scary. Luckily, dealing with the resulting property damage is a simple and straightforward process.