Car Insurance How does the process of settling a total loss claim work? View Carriers Please enter valid zip Compare top carriers in your area By Insure.com's Editor | Updated on May 25, 2023 The page is part of the topic how to keep your totaled car Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Settling a total loss claim involves a few essential steps that help you receive compensation for your vehicle after it’s been deemed unrepairable. Knowing these steps can make the process smoother and less daunting. Key steps in settling a total loss claim Assessment and inspection – An insurance adjuster examines your damaged car to determine if it’s a total loss. They assess the extent of damage and calculate repair costs. Pre-accident value – The adjuster determines your car’s pre-accident value, often called Actual Cash Value (ACV), by considering factors like make, model, mileage, and condition. Repair cost comparison – The cost of repairs is compared to the car’s ACV. If repairs exceed a certain percentage of the ACV, it’s likely to be declared a total loss. Settlement offer – If your car is deemed a total loss, the insurance company will offer a settlement. This settlement is usually the ACV minus your deductible. Accepting the offer – If you agree with the settlement offer, you’ll sign the necessary paperwork to finalize the claim. The car insurance company will then issue the payment. Buying back your car If you wish to keep your totaled car, you can ask the insurance company about the option to repurchase it at salvage value. In this case, the salvage value will reduce the settlement amount, and you can then repair the car yourself. Conclusion Understanding the steps in settling a total loss claim can help you navigate the process more confidently. You should know about the policy, the offer given, and any potential options for retaining your totaled vehicle. In case you missed it Best Car Insurance Companies of 2024 Car insurance rates by state in 2024 What is full coverage car insurance? How much does car insurance cost for seniors in 2024? A complete guide to adding a teenager to your car insurance policy in 2024 What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? Used car insurance costs: Most and least expensive models to insure The Best Car Insurance for Bad Credit of 2021 The best car insurance companies for speeding tickets Car insurance after a DUI Guide to car insurance discounts Proper insurance coverage for college-bound children How to read actually understand your auto insurance policy Car Insurance Companies New driver insurance grace period: What you need to know How much do insurance agents make Autonomous cars: 5 delightful and 5 distressing things Busted! Part 1: How insurance companies spot bogus claims Insurance options for rideshare drivers 10 things that are illegal but shouldn’t be 1/1 On this page Key steps in settling a total loss claimBuying back your carConclusion Get instant quotes now ! Please enter valid zip Get Quotes