How To Claim Total Loss Benefits On Your Car Insurance?
If your car is obsolete, (five or more years older), the insured declared value is a sum you determine in collaboration with your insurance provider.
A standard motor insurance policy offers total loss benefit in the instance of a car accident; insurance agencies often say. But as a consumer, you should know that this is not the reality. The insurer never pays the complete cost of your car against the claim you file.
Consumers in general are not aware of the meaning of several terms in motor insurance. They come to know of them only when they have to face certain situations in real life. This comes up with the next question.
How to claim total loss of a car from insurance
In the insurance industry, total loss is a scenario where the cost of repair of your car exceeds its insured value. But in India, the situation is slightly different. Here, a car is treated as total loss if its value exceeds 75% of its insured declared value. Thus, you may have the latest model available. But You are never going to get the complete replacement cost if you lose your car in an accident. Your insurer uses a predefined depreciation factor on the car older than five years based on its ex-showroom value. Thus, you get an amount equal to the insured declared value of the policy of the year the accident happened if you file a claim for total loss benefit.
How to get more for your total loss vehicle settlement
Do the following to ensure that you are getting more from your claim for total loss benefit for your car.
- Gather as much information as possible: If someone else is involved in the accident, gather as much information as possible about the driver. This helps you determine whether you should file a claim on your coverage or on that of the third party. Even when no one is involved, evaluate the extent of damage your car suffered.
- Inform your insurance company in the beginning: Remember, your insurance company has a time limit to be notified of a claim. Do not commit the fatal mistake of being careless. Your insurer may just reject your claim. Skip this step if you file a claim on the other party’s coverage.
- File a police complaint: This deserves utmost importance if a third party is involved in the accident. Get an FIR to ensure that the process goes smooth and fast.
Remember, time matters a lot. File your claim and submit the necessary documents at the earliest. If your application is complete, you can relax. Your insurer will take care of your claim.
If the damage is minor, the best option is to bear the expenses from your pocket. It will protect your “no-claim” bonus. And you will continue to receive discounts on your premium. Follow up with your insurer patiently. Even these complications don’t give you the excuse not to insure your car. The peace of mind insurance offers outweighs all the expenses you may incur in future.