If I have a Total Loss?

The following information may help you understand the total loss process and some of the terms commonly used when referring to total loss vehicles.

What does “total loss” mean?

Total loss means that when the cost of repairing the vehicle exceeds a certain percentage of the vehicle’s actual cash value.

A total loss could be a term used once the price of repairing the vehicle exceeds an explicit share of the vehicle’s actual monetary value.

In addition, a vehicle may be considered a total loss if:

Your province law requires the vehicle to be a total loss based on the damages, or
The vehicle is not safe to repair, or both.

How is my “actual cash value” calculated?

Determining your vehicle’s actual money worth needs 2 steps:

Your insurance provider will take your vehicle and consider many factors such as, year, make, model, options, mileage and condition.
Your insurance provider compare your vehicle to similar vehicles within the market and modify its worth.

Your insurance provider will follow your policy contract and the province’s guidelines throughout the evaluation process.

Note: Auto Shield Canada does not partake in the evaluation process. Please contact your insurance provider.

What is the next step?

Once your vehicle is inspected, your insurance provider will contact you to provide the vehicle evaluation. If you are not planning to keep the vehicle, your insurance provider will assist in having the vehicle towed to a secure, storage-free facility throughout the settlement process.

Make sure to:

Remove personal belongings from the vehicle prior to the vehicle being moved.
Locate the vehicle’s keys.
If there is a loan on the vehicle, please locate your lender’s contact information and loan number.
Locate the ownership
Delete your personal information in the vehicle’s navigation and/or phone system.
Return the required documentation requested by us, promptly.
Contact your agent to discuss continuing possible coverage options.

GAP Insurance is what you need to protect yourself from total loss.

Help safeguard customers with Guaranteed Asset Protection to protect them from unexpected events such as write-off accidents, or an unrecoverable theft.

GAP Insuranceis the only insurance that can protect you with benefits including:

Coverage for more than 5 years
Available for loans up to $150,000
Covers negative equity shortfall, according to your policy
Pay-out based on the Insurance company
Covers primary auto insurance deductible up to $1000
Originating dealer loyalty bonus

Author's Bio: 

Blerina Laska