If the insurance company totals your car, it will pay you the car’s actual cash value, minus your deductible, and your car is then sent to a salvage yard to be auctioned off to the highest bidder and usually chopped up for parts. The insurance company keeps whatever money it got for the car in salvage.

What happens if someone else totals your car?

When a car has been totaled the insurer must then compensate you for the determined value of the vehicle prior to the accident. They won’t replace your car, or guarantee that the vehicle’s pre-accident value will be enough to purchase a replacement.

What happens if your car is totaled by another driver?

If another driver is at fault in the accident, their insurance pays you the value of your totaled vehicle with the at-fault driver’s property damage liability coverage. If your vehicle is damaged in any way or you were hit by a driver without insurance, the coverages below can protect against a totaled vehicle on YOUR insurance policy:

What happens to your car if you are not at fault in an accident?

If the accident is your fault and your car costs more to repair than what it’s worth or can’t be repaired, your insurance company pays you the value of the vehicle (minus any deductible) if you have the right coverages. If you were deemed not at fault, you can choose to file a claim with the other driver’s insurance company.

Who gets the settlement check if my car is totaled in an accident?

However, you should not assume this means that you will receive a settlement check for the ACV. Who the insurance company will pay when they total your vehicle will depend on whether your vehicle loan is financed or not. Here is how the payment could be made once a figure is agreed upon: No vehicle loan.

When to notify your insurance company if your car is totaled?

Keep in mind, new car owners may be most susceptible to the situation above. Newer vehicles typically depreciate as soon as you drive the vehicle home from the dealership. If you’re involved in an auto accident, regardless of fault, and your car is damaged, immediately notify your agent or insurance company.