A vehicle is considered a total loss if the vehicle cannot safely be repaired, the cost to repair exceeds the state’s threshold to repair, or the cost to repair the vehicle, along with associated costs such as rental, towing, and storage, equal or exceed the value of the vehicle at the time of the loss.

A market search will look at comparable vehicles in your local market area and what

those vehicles are selling for. It also takes into consideration your vehicle’s condition,

mileage, options, and any prior damage. A copy of the evaluation should be provided.

Once your vehicle has been inspected, a total loss adjuster will contact you to go over the value of the vehicle and the total loss process. If your vehicle has not already been moved to the salvage yard, you will need to clean out all your personal belongings, including any paperwork, and advise the adjuster that the vehicle is ready to be picked up. In some states, you may also need to remove your license plate(s). If your vehicle is located at a tow yard or body shop, be sure to advise them that you have given permission to pick up your vehicle.

You should contact your insurance carrier once payment has been issued and advise them

that your vehicle has been deemed a total loss and have it removed from your policy. If

you retain ownership of the vehicle, you may need to provide specific documents.

If you are currently making payments on your vehicle, you will need to provide the name,

phone number, and account number for the lienholder where you make your payments. In

states where the lienholder keeps the title, a power of attorney form will be sent to you to

complete and return for the title transfer process. If you have the title to your vehicle, the

vehicle title will be required to resolve your total loss.

Each state has its own laws and regulations to determine if you are able to keep a vehicle

once it has been deemed a total loss. A salvage value may also be deducted from the

settlement. If you are still making payments on your vehicle, the loan company will need

to be involved in this process.

You are entitled to a rental vehicle for a reasonable amount of time once coverage and liability are established. If a rental is provided as part of your claim, you will be advised of the last day for the rental. Rental last days are determined based on reasonable claims expectations and state laws and regulations. You may also be afforded a rental based on the coverages of your own insurance policy. To keep your rental covered during the processing of your claim, your policy must remain active.

The faster the information is provided, the faster the total loss claim can be settled and

payment issued.