The Total Loss Process (Simplified)

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It is safe to say that insurance is a fairly complicated subject and most people struggle with understanding the in’s and out’s when it comes time to make a claim.

For this reason, we have put together “The Policyholder Survival Guide” to explain in plain simple language how the process works and how to calculate the value of your vehicle.

By better understanding this process, it will help you determine whether the insurance company’s settlement offer is reasonable. If you feel it is not, then this guide will also walk you through your options which are quite simple to exercise.

At a very basic level, your insurance company will deem your vehicle a total loss if:

It is damaged through collision, fire, hail, etc. and the cost to repair it is close to or exceeds the fair market value of the vehicle, or
It is stolen and not recovered within a reasonable period of time.
They will determine a pre-accident value and make you a settlement offer to basically buy back the damaged vehicle at the pre-damaged price. If you accept, they will issue you a cheque and they become the owners of the vehicle.

If you feel their offer should be higher, you have the right to submit credible data to demonstrate otherwise and be able to demonstrate why their valuation was not correct.


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