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What Happens When Your Car is Totaled

If your car is totaled, you may want to try to recoup your losses and drive your car again. However, when cars are totaled, they are at a total loss. However, there are ways you can get coverage so you don’t have to pay for the costs associated with a totaled vehicle.

At MAIF, your Maryland Auto Insurance Provider, we want to help drivers understand what happens if their car is totaled and the next steps they should take. Ensuring you have auto insurance coverage, whether it’s a collision or comprehensive coverage, can help you if your car is totaled.

What Happens When Your Car is Totaled

How Do They Decide If My Car Is Totaled?

Your insurance provider determines if your car is totaled. Insurance usually covers the cost of damage if repairs are less than what the car is worth. However, an insurer will declare the vehicle a total loss. Then, your insurance will reimburse you for the vehicle’s actual cash value. Totaled cars typically reach 75% to 90% of their ACV.

Collision coverage will cover the cost of your totaled vehicle if you collide with a tree, guardrail, vehicle, or other object. It will pay for the value of your vehicle regardless of fault. Comprehensive coverage will cover weather-related damage or vandalism. Liability insurance can cover repairs if you are not found at fault. However, if you are uninsured and found at fault for an accident, you must pay for repairs or your new car.

What To Do After Your Car is Totaled

Regardless of whether you or another driver are at fault, you must notify your insurance company after an accident. The insurance adjuster will determine whether or not your car can be repaired. Your vehicle can be towed to a body shop approved by your insurer directly after your accident. The shop will provide the insurance adjuster with the approximate cost of repairs.

If the vehicle is totaled, you must provide your insurance company with your car’s title and sales receipts so they can reimburse you for your car’s value. You will need to pay for your repairs or new vehicle if uninsured. If your car is totaled and you want to finance a new car, see if you owe a balance on your vehicle. You can start looking for a new car once you know how much money you will receive from your insurance company.

Did your car get totaled? Do you need insurance to help ensure you’re covered in the event of an accident? Call MAIF at 301.842.6002 to make sure you’re covered in the event of an accident, whether another vehicle, weather, vandalism, or a collision with another object totals your car. You can also get a free car insurance quote on our website.

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