What Happens When Your Car Is Declared a Total Loss?

There are many aspects to a property damage claim, and today I’m going to talk about a total loss. A total loss is when your vehicle sustains enough damage that it costs more to fix it than your car is actually worth. The decision of whether to fix it or to give you a check for the value of the car is up to the insurance company, and the amount that the insurance company is required to pay by law is the value of your car at the time of the wreck. It is not a replacement of your vehicle; it’s what your car was worth at the time of the wreck is what the insurance company is required to pay you.