should be paid total vehicle loss damages when the cost of the repair exceeds the value indicated in the insurance policy. For this purpose, the commercial value of the insured vehicle at the time of the accident or theft is taken into account. At Dulcinea Insurance, we are happy to provide you with all the information you need. If you have any further questions after reading this important topic, you can call us at 786-910-9487 And we will gladly advise you on whatever you need.
Why is the payout for a totaled vehicle so controversial?
The topic of paying for total loss damages is sometimes controversial, especially due to the reluctance of car insurances to assign this classification. Let's remember that there have been cases of people intentionally seeking a «total loss» to be able to buy another car. For this reason and others, insurers take considerable precautions and study each case meticulously.
When it comes to theft, the company must pay you 30 days after reporting it to the police. This also requires an investigation, due to the previous explanation.
But how is the compensation rate calculated based on your vehicle? If you want to know, keep reading.
¿When does the insurance company pay for a total loss of the car, and when do they not?
It is very important that you know the following: The auto insurance company in Florida will pay you the total loss of the vehicle if you include the Full coverage protection. And to protect your car specifically, you should include the coverages of Collision y Comprehensive. If you only include the basic protection required by the State of Florida (Pip) will protect your health as a driver and the third person's car, but it does not include your own car in the event of an accident. These are essential elements to consider when assessing the total loss of the vehicle.
What are the methods for calculating compensation for a vehicle with total loss?
There are two methods for calculating the compensation for your car if it has been declared as total vehicle loss. These correspond to the following values:
1. Commercial value
The amount paid corresponds to the commercial value at the time of the accident. This is without any pro-rata deduction. When it comes to insurance policies contracted under this modality, it is not necessary to mention an insured sum. If done, this is taken as purely referential.
Traditional value
This value is set by you when you purchase insurance with your company. Therefore, the amount of compensation will be calculated according to the commercial value of the vehicle. However, at no time may it be compensated for a sum greater than the one previously established by you. In the event that the insured sum is less than the commercial value, you will be responsible for the difference.
What do you do when the amount exceeds the loan or insurance value?
Not all coverages pay the same, which is why there is GAP insurance. Guaranteed Auto Protection Insurance takes on special meaning when it comes to the total loss of a vehicle. Especially when the insurance balance does not cover the traditional value of the vehicle or the loan has not yet been paid off.
When we buy a new car, it starts to lose its initial value from the moment it leaves the dealership. That's why GAP is important, because when the loan balance exceeds the car's depreciated value, this insurance covers the remaining amount.
If you have any remaining doubts about this topic of total vehicle loss or any other, at Dulcinea Insurance, your Auto insurance agency in Florida, we will gladly advise you. We can also help you with a free auto insurance quote in Florida. 786-910-9487 is our direct helpline.
