Can Auto Insurance Help If My Car Is Totaled?

​Accidents and fire hazards are not the only risks your auto insurance covers you from. Having comprehensive collision coverage can help you when your car gets totaled. It makes another valid reason why the first thing to get as a car owner is adequate auto insurance.

How Insurance Helps Your Totaled Car
A totaled car is called a loss in the financial market. It is the measure of the worth of your car in comparison to the cost of repairs it needs after several damages. When the cost of damage to the car is more than 75% of the original value of the car, it will be totaled.

Before your car can be totaled, it is left for your insurer to deem it a total loss. When secured with comprehensive collision coverage, it helps by covering the cost of a replacement vehicle. People without these coverages would have no option but to pay themselves, which could affect already planned finances.

Steps to Follow if Your Car Gets Totaled

Getting involved in an accident or if your car is damaged due to some other unfortunate event is never a fun ride, but here are some ways to move forward when auto-insured:

1. Report to Your Insurance Agent
Any damage to your car warrants you telling your insurance agent to know how best to tackle the situation. They are the best advisers you have, so always keep them in the loop!

In the event of your car being totaled, make an insurance claim! At this point, your insurer will determine if your car is truly a loss or not.

2. Determining Your Car’s Worth
With the help of your insurance agent, the actual cash value of your car at the time of the accident or incident is determined based on several factors. Here are some of the factors considered:

• Car’s Condition
• Age
• Mileage
• Resale Value

3. Reimbursement
Here, you will be issued payment for your actual car’s worth minus the deductibles you pay for your comprehensive and collision coverages.

CONCLUSION
Getting an auto insurance policy will always be a pro, so do not let anyone sway you away from doing so. It helps you when your car gets totaled and saves you from fully paying for a new one.

At Family Auto Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (313) 285-9042. Get your free quote today by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!