You've been in a car accident. Your auto insurance company says the damage is so severe that it would cost too much to repair the vehicle. They consider the vehicle totaled. Most car insurance plans provide this type of coverage (for comprehensive coverage policy holders and collision policy holders). But, there's still the process of getting you back in a vehicle. When your vehicle is a total loss, your insurance company will likely provide you with the funds to purchase a new vehicle. However, there's still the matter of your existing vehicle.
What Happens to Your Existing Vehicle?
A salvaged vehicle may still be one that is sold. If your vehicle is lost and your auto insurance pays you for the value of your vehicle prior to the accident, the insurer will likely salvage the current vehicle for anything that is considered possible. This may mean selling it to a salvage company. If they do sell it in this way, the insurance company generally will keep the salvaged value of the car. In other words, you are unlikely to see any funds from the sale of your existing vehicle for salvage.
When you face losses like this, the auto insurance provider will likely try to recoup any of the losses they've incurred. Selling the total loss vehicle is one way to do this. Nevertheless, you should ensure the amount they pay you is the right amount. For example, you'll first want to ensure your policy provides you with replacement coverage of the vehicle. And, it should cover any of the contents you had in the vehicle at the time of the incident (that you were unable to retrieve. It's important to be thorough when making this claim to ensure all of your loss is covered in it.
The value of your vehicle is paid to you at the time that it is considered a total loss. There may be other factors to consider, including sales tax, title fees, and licensing fees that you may have to pay (or that the car insurance provider) may pay on the totaled vehicle. It's also a good time to take a closer look at your existing policy to ensure it is accurate.
We've got you covered. Call HIG – Henrich Insurance Group at (713) 349-0400 for more information on Houston auto insurance.