My Car is Wrecked! What Now? (Part 3)

Let’s wrap up our series on property damage with a final few bits of information about the last stages of dealing with either a totaled vehicle or obtaining repairs on a still-drivable car:

9.  Keep in mind that sometimes it’s better to have your car repaired rather than totaled. For example, if you owe $10,000 on your loan but the car is only worth $7,000, it is not the insurance company’s responsibility to pay off your loan.

10.  Find out if you have bought GAP insurance when you purchased your car. GAP insurance can help you fill in the difference if you owe more on your car than what it’s worth.  There are a lot of stipulations with GAP insurance, so we recommend that if you are in an accident and your vehicle is totaled, go ahead and file your GAP claim immediately – it can take up to three months to process.

11.  If your car is a total loss, you have the option to “retain salvage.” This means the insurance company will pay you the Fair Market Value of your car minus a salvage amount.  Salvaging a car means you can keep your vehicle, but the title will change to “salvaged-rebuilt.”  This can be a good option if you own an older car that are already paid for and didn’t sustain much damage.

Hopefully that answered some of your initial questions about dealing with property damage after a car wreck.  If you are having difficulties at any part of this process, we urge you to contact an attorney that may be able to ease the way for you!