Auto Insurance – Determining a Total Loss Accident
Being involved in an car accident is a terrible thing. However, determining that the driver’s car is a total loss by the car insurance company usually brings forth feelings of fear and panic. What will happen next? Can the driver buy a new car at this time or maybe it’s time to get a new automobile insurance company?
The main hedache is not the automobile insurance company. What has happened is that the auto insurance company has determined that the cost of repairs is more than the value of the car. It is at this point that the car insurance company declares the car a total loss and will not pay the insured to repair it.
Before talking about how car insurance companies declare a car a total loss, drivers must have a understanding of how auto insurance estimates car repairs.
Generally speaking, auto insurance companies estimate total cost of auto repairs in one of two ways: at an auto repair shop or through a claims adjuster.
For example, the driver hits a deer and causes damage to the hood and the engine. The car is smoldering and must be parked on the side of the road. The driver must call his or her auto insurance company to file a claim and to have the car towed to an auto repair shop where an estimate will be performed.
But what if the car is parked at the driver’s residence and has received significant damage due to a hailstorm, tornado, fallen tree, or other act of God?
In this case, the auto insurance company may elect to send a claims adjuster to the scene. The claims adjuster will then proceed to verify the loss after the driver calls the auto insurance company and files an insurance claim.
The role of the claims adjuster is to inspect the car for damage and estimate the cost for repair. Claims adjusters are highly trained to spot damage on all parts of the car, even underneath.
After inspecting the car, the claims adjuster determines the initial estimate based on parts and labor. The auto insurance company then takes this estimate and executes an automated claims process using proprietary auto insurance industry computer software.
If the auto insurance believes that the car is a total loss due to damage incurred in an accident or act of God, it performs an evaluation of the car to estimate the actual cash value (ACV). If the cost to repair the car falls between 51 to 80 percent of the car’s ACV, the auto insurance company determines that the the car is a total loss.
After the auto insurance declares the car a total loss, two choices are presented to the driver: receive the actual cash value of the car from the auto insurance company toward the purchase of a new car; or keep the damaged car (if drivable) and pay for auto repairs out of pocket.
In conclusion, an auto insurance company declares a car a total loss when it determines that the cost to repair the car exceeds its actual cash value. While the owner can keep the car (if drivable) with the current auto insurance, the auto insurance company will not pay for repairs.
Source: Jersey Car Cash - http://jerseycarcash.com/car/auto-insurance-determining-a-total-loss-accident/Â
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www.vbattorneys.com Watch this for some tips on the goals of auto insurance adjusters after an auto accident.
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Question by Amanda: How to become an auto insurance adjuster?
I live in Georgia, and wanting some details on becoming an auto insurance claims adjuster, I currently work for an towing company have some experience in vehicles.
also, how much money do they make?
Best answer:
Answer by fightingsaints
The answer will vary depending on if you want to become an Adjuster (one who investigates liability) or an appraiser (one who only estimates vehicle damages.
First off, either one can be a very stressful, thankless job. Depending on what company and location you could start as a trainee in the high 20′s or low 30′s. A good way to get into either position is to get a job as a trainee at a large insurance company. That is where you will get your best training and more importantly experience.
Check with jobsites such as www.greatinsurancejobs.com or www.careerbuilder.com
You might also check with any local vocational schools in your area as many of them are beginning to offer classes in becoming an adjuster.
Good Luck
Add your own answer in the comments!
Accident, Auto, Determining, Insurance, Loss, Total
I started out as a trainee in Workers Comp at a major insurance company years ago. Later became an Auto and Liability adjuster. Finally switched to Insurance Broker in Commercial Lines.
Back when I first started, minimum wage was $ 1.65 an hour and we didn’t make a whole lot more than that. I think I was making something like $ 400 a month when I started. But as I said, that was a long long time ago.