Car Total Loss - Determining And Settling The Value Of Your Car!

What is the car total loss process? Once you are in an accident, the insurance company must inspect the vehicle and determine whether the damage was substantial enough to declare a complete loss.

Most insurance companies will want to inspect the vehicles themselves. In most accidents, insurance companies have approved body shops write estimates and they eventually issue payment based on that estimate. However, when there is a potential for a car total loss, most insurance companies want their insurance adjuster to inspect the vehicle.

The reason for this is the conflict of interest that arises from the arrangement between the insurance company and the body shop. Body shops are in the business of fixing cars. They have a vested interest in quoting the repairs so the car can be fixed and not declare it a car total loss.

For all practical purposes this means that you will be waiting longer. Usually it takes two to three business days for the body shop to issue a repair estimate. If the claim adjuster or the field representative has to inspect and write their own estimate, then you will be waiting three to five more days to get to the location of your car.

Before the adjuster comes out, she/he will submit all pertinent information about your car (year, make, model, and mileage) to a third party company. This company usually is CCC Information Services Group, Inc. CCC will do a preliminary report to determine what the value of your car is so the adjuster knows what the insurance company would be looking to if there is a total loss.

Depending on your state law and the specific insurance company, there will be a car total loss when the insurance company believes that the cost to fix the car reaches 70%, 80%, or even 90% of its total value. It is always a good idea to ask the adjuster what is the threshold they use to determine a total loss.

When the vehicle is being estimated by the car total loss adjuster, this individual will be looking at the condition of the vehicle. They will note how “clean” the vehicle is, what is the exact mileage, and what equipment and options the car has. All of this information will be reflected in the final evaluation of the vehicle.