To ensure the best possible insurance payout for a totaled vehicle, it’s crucial to be organized, proactive, and informed. Here’s a breakdown of the key steps to take and documents you should prepare:
✅ Steps to Take After Your Vehicle Is Totaled
1. Understand the Insurer’s Total Loss Valuation
- A vehicle is typically declared “totaled” when repair costs exceed a certain percentage (commonly 70–80%) of its actual cash value (ACV).
- Insurers use third-party tools (like CCC One, Mitchell, or J.D. Power) to determine your car’s ACV before the accident.
2. Request and Review the Valuation Report
- Ask your insurance adjuster for the full valuation report.
- Review comparable vehicles listed. Ensure:
- They are in the same geographic area.
- They have similar mileage, trim level, and features.
- The condition adjustments are fair and justifiable.
3. Gather Evidence of Your Car’s True Value
- Search for comparable listings online (e.g., Kelley Blue Book, Edmunds, AutoTrader).
- Print or save:
- Listings of similar vehicles for sale in your area.
- Maintenance records showing recent repairs or upgrades.
- Receipts for new tires, brakes, or engine work.
- Documentation showing low mileage or excellent condition.
4. Challenge the Offer if Needed
- If your valuation is higher, submit a counteroffer with evidence.
- Highlight discrepancies in the insurance valuation (e.g., older or poorly equipped comps).
- You may also hire an independent appraiser.
5. Understand Salvage Retention Option
- Some policies allow you to keep the totaled vehicle and receive a reduced payout.
- Evaluate if this is worthwhile, especially if you’re considering repairing or parting it out.