What Happens When Your Car Is Declared A Total Loss?

If you have recently been in an accident or your vehicle has severe damage in Alabama, your insurer may declare it a “total loss.” Understanding what this means and what steps may follow can help you handle the process. Crawford Insurance LLC can guide you through your auto insurance options.

What Does “Total Loss” Mean?

A vehicle may be declared a total loss when the cost of repairs exceeds its actual cash value (ACV) or meets a threshold defined by state law. This can happen after a major accident, flood, fire or other significant damage.

The Total Loss Process: What to Expect

When your vehicle is declared a total loss, here’s what may happen:

• Assessment: Your insurance company may inspect the vehicle and determine its ACV based on factors like age, mileage, condition and local market value.
• Settlement offer: You can expect to receive a settlement offer for the ACV, minus any applicable deductible and fees.
• Title transfer: If you accept the offer, you may need to sign the vehicle’s title over to the insurance company, which will then handle the salvage process.
• Loan payoff: If you have an outstanding loan or lease, the settlement will typically be applied to your lender first. Any remaining amount may then be issued to you.

How Crawford Insurance LLC Supports You

Our team is here to help you understand your policy options and find the right coverage. Contact us today for a free custom quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.