If your insurance company deems your vehicle a write-off after an accident, you will receive a cash settlement based on the fair market value of your vehicle before the damage occurred. Factors such as repair costs, salvage value, and safety considerations play a role in this determination.
The claims adjuster will assess the damage and consider criteria such as repairs exceeding the vehicle's value, structural damage that cannot be fixed, or deployed airbags. If the vehicle is deemed a write-off, you will be paid the pre-collision value of the vehicle minus the deductible, and the insurer will keep the salvage.
The process may differ depending on whether your vehicle is leased or financed. For leased vehicles, you may receive a settlement from the leasing company, and for financed vehicles, you may need to pay the remaining balance on the loan if the settlement is less than what is owed.
Negotiating with your insurance company is an option if you are unsatisfied with the settlement offer. You can research the actual cash value of your vehicle, speak with your claims representative, and seek arbitration if needed.
Ultimately, understanding the claims process, not accepting the first offer, and being prepared to negotiate can help you navigate the total loss vehicle settlement process.