By June 20, 2007 0 Comments Read More →

How to File a Car Insurance Claim on a Total Loss

Reader question:

What happens if my car is destroyed and I’m left with nothing to drive during the claims process?


Great question.

This is one of those situations in which I strongly advise people to plan ahead. Planning ahead is important in most situations in life, and that doesn’t change when your auto insurance is concerned. If you do happen to be out of luck and you get in an accident after which your car is considered a total loss, you’ll still need to get to work everyday while the claim is going through and you haven’t gotten your replacement yet. Because of this, before the fact, make sure that you have rental car coverage on your policy to keep you moving.

Always be sure to confirm that you have rental coverage when changing your policy or getting a new one. Having a rental car will keep everything from falling apart around you while you’re concentrating on settling your claim. If you’re picky, make sure you have enough rental coverage to allow for a nicer car. If it doesn’t matter that much to you, it’s cheaper to rent a car that’s worth less than the car you own(ed). You may not get as nice a car as you had before, but at least you can avoid being a burden on your friends and family members.

Depending on your policy, you might be liable for collision damage on the rental car. Policies vary on how they cover this, so talk to your agent and check your policy before renting a car.


Fashun Guadarrama.

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