Automobile Insurance Claim: Is it Damaged or Totaled?

If you are involved in an accident, you may be wondering how your insurance company evaluates the damage to your car? Where do I go from here and how do they determine my insurance claim? These questions are normal. Many drivers who are in an accident have all kinds of questions. This blog is to help you understand the process our insurance company, Erie Insurance, does to determine the payout of your vehicle.

 Claim adjusters will assess the condition of the vehicle. After data is collected, that information will be run through an industry-leading database to estimate the vehicles current worth. This will determine the resale value and demand for your vehicle.  

The adjuster will also determine the salvage value. This amount is the total of resale for parts and scrap metal for your vehicle.  It will be combined with the total cost of repair.

The total repair cost is determined and this amount is usually an estimate as it factors in unseen problems that your car may have sustained during the accident. 

After all these are determined, the adjuster will take: the cost of repair plus the salvage total. If this amount exceeds the actual cash value of your vehicle, that is when the adjuster will declare a total loss. Fortunately, only about 12% of Erie’s automobile claims are declared a total loss.

Insurance Claim is Declared a Total Loss – What Happens Next?

 Typically, if your vehicle is a total loss, you will be offered a cash settlement. Most clients agree to this. You may be able to keep your totaled vehicle. However, if your state allows you to keep your vehicle, your insurance will deduct the salvage value from your total.

 From there, if you happen to owe any money on the vehicle, either to a bank or credit union, your amount will be used to pay off the loan and whatever is left over will be given to you.

A Kattan Ferretti Insurance, our experts can answer all your questions regarding automobile claims. We sincerely hope you never are involved in an accident, but they do happen. We are here to make that difficult process as smooth and simple. Talk to Kattan.

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