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When the cost of repairing damage post-car accident goes beyond that of needed repairs, that car is considered “totaled.” The criteria used to determine those rates can vary but must abide by state regulations. Typically, your vehicle’s value is calculated according to its ACV (or actual cash value). The ACV is formulated by considering the driver’s age, the vehicle’s mileage and condition, and accident-related factors.
But who gets the insurance check when a car is totaled? This answer depends on many important factors, including the type of car insurance you hold.
The Two Core Types of Car Insurance
Vehicle owners that hold auto insurance in Decatur, GA, tend to have one of two types of insurance:
GAP Insurance
A GAP insurance policy (or guaranteed auto protection policy) helps owners cover the difference between their car loan amount and the insured vehicle’s ACV. With most GAP policies, you’ll need to pay deductibles to keep the coverage intact. When damages from an accident exceed your deductible, you might, unfortunately, not receive a payout from your insurance company.
Comprehensive and Collision Coverage
Collision policies cover any damages caused by collisions with vehicles and objects, while comprehensive policies also include other factors—such as theft, natural disasters, and vandalism. If you have a lien on your vehicle, the majority of insurance companies will require you to have both comprehensive and collision coverage. This makes the question of who gets the check when a car is totaled easier to determine.
Read more: The Primary Types Of Car Insurance Coverage To Know About
How Liability Affects the Payout
The liable party in an accident has to cover the costs of the accident through their insurer. When the fault is shared, insurance companies on both sides will investigate the scenario and assign the percentage of fault each party holds. The insurance payout will be divided based on the fault percentages the insurance companies agree upon.
Read more: Does Car Insurance Go Down After the Car Is Paid Off?
Who Actually Receives the Insurance Check?
So, when a car is totaled, who gets the check? When an owner owes a vehicle outright, their insurance company will provide them with a direct payout. Owners with financed vehicles will have their remaining outstanding loan paid out first and then receive any leftover payout. This system protects all parties involved in the vehicle’s financial history.
Secure Your Investment
Protect your investment by working with Focus Insurance Group. Insurance in Decatur, GA, experts will ensure you get the maximum payout possible, and you’ll be back on the road in no time. Contact our team members to understand how to get that payout quickly, efficiently, and transparently so you do not wonder if your car is totaled and who gets the check.
