What happens when the insurer totals a car?

The term totalled comes from the insurance term ‘total ‘loss’. When the insurer totals a car it means that the cost to get the car fixed exceed the value of the car itself, or that it is damaged beyond repair.
This is declared by the insurance company once both the insurer and the owner have agreed to write the car off.
This most commonly happens after the car has been in a serious accident, as this is usually the cause of expensive or irreparable damage to a vehicle.

How an Insurer will value your car:

The insurer will use the factors to determine the cost of repairing the damage to your car, to determine if it is fixable or a write off.  The value of your vehicle is based on the condition and risk of the vehicle and also on the following factors:

• Vehicle’s worth, taking into consideration any previous signs of wear and tear.
• Damage costs: The extent of damage to the vehicle and cost of parts needed to repair it
• Repair times: Longer repair times mean higher costs and the greater likelihood of a higher group rating
• New car values: Prices of new cars are considered. This is because they’re a good guide to the cost of replacement and repair.
• Body shells: Availability of body shells (the basic frame of the car) is considered in group ratings. This is because they’re essential for certain accidental damage repairs
• Performance: Acceleration and top speed are important factors
• Car security: Security features can help to reduce the insurance claims costs

How GAP Insurance helps you when the insurer totals a car:

When your car is written off, the insurance will pay a certain amount to help you replace your car. The amount paid by the insurer is determined by the previous factors.
However it is extremely unlikely that they will pay you the same amount that you originally paid for the car. This is because the insurer will pay you the vehicle value at the time off the accident, not at the time of purchase.

As a result there is a difference between the insurance pay out and the amount you invested in your vehicle. This is where GAP insurance comes in.
GAP insurance will pay you the difference between the insurance pay out and the original purchase price of your vehicle. This means you will always be able to replace your car if it is totalled.

If you would like a quote for GAP Insurance then click here. We can provide you with instant cover to make sure you are always fully protected.
If you would like further advice or information then call our team on 01613882550.