Every thing you should know in regards to the claims course of for a automobile whole loss insurance – carandbike

If you're still looking for what the terms total write-off, IDV, CTL, etc. mean, look no further. We have made a detailed reading on what a write-off is and how to deal with it.

Did you know that around one in seven car accidents worldwide is a total write-off. But what exactly does the term total loss of a car mean? How do you know if your car has been totaled? What documents do you need? And how do you apply for total loss insurance? We answer all of that and more in this article so that you don't get lost in insurance jargon.

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An insured vehicle is considered a total loss vehicle if the estimated repair costs are more than 75 percent of the declared value (IDV) of the insured person. The IDV is the sum insured at the start of the contract; that's practically the market price of the car. The car declared as a total write-off is called a total write-off. On the other hand, insurance companies refer to an insured car as a constructive write-off (CTL) when the total cost of recovering and repairing the vehicle exceeds its fair value or value.

How do you know if your car has been totaled?

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A total loss of a car occurs in two situations – theft and extreme damage. If your car is stolen and there is no way to get it back, it will automatically result in a total write-off. On the other hand, if the car is badly damaged and the repair cost is almost as much as the cost of the car, it can be called a total write-off.

How is the total loss calculated?

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Total write-off is declared if the repair costs of the vehicle are more than 75% of the IDV. IDV is basically the approximate market value of your car. The following factors determine a car's IDV:

  • Make and model of the car
  • Mileage
  • Age of the car
  • If it is a private or company vehicle
  • Condition of the car
  • Displacement
  • Price from the showroom of the car

What is the process of total loss insurance?

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The insurance claim process in the event of a total loss is as follows:

  • As soon as your car suffers damage, get in touch and inform your car insurer of the mishap.
  • The insurer sends an appraiser to the location. Provide the expert with all kinds of information about the accident.
  • After the appraisal, the expert declares the damage either as a total write-off or clears it for repair.
  • If it is declared a total loss, the appraiser evaluates the present value of the car as a total loss.
  • After the valuation, you will receive the cash value of the totaled car from the insurer.

What documents are needed to start the process?

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You need the following documents to start your application process:

  • A copy of your car's valid RC or registration certificate
  • Expert reports to determine the cause of the damage, the amount of damage, etc.
  • Copy of your car insurance policy
  • The estimate of vehicle repair costs
  • A copy of the driver's license, which should be valid at the time of the incident

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