The total loss of a vehicle is heartbreaking, but understanding the total loss process can help with the headache of what to do in North Carolina. A total loss is called when the repairs are more than the vehicle’s actual cash value (ACV).

Initial Assessment and Reporting

The total loss process begins with reporting the accident to your insurance company. After filing a claim, an insurance adjuster will assess the damage to your vehicle. This assessment includes a thorough inspection to determine whether the car can be repaired or is a total loss. The adjuster writes up an estimate for the repairs and compares it to the vehicle’s ACV, considering these factors: its make, model, year, mileage, and overall condition.

Determining the Actual Cash Value

The actual cash value (ACV) represents the market value of your car at the time of the accident, considering depreciation and wear and tear. Various methods are used to determine the ACV, including industry guides, recent sales of similar vehicles, and market trends.

Settlement Offer and Options

In the case of a total loss, the insurance company will offer a settlement offer where the deductible is subtracted from the ACV. You can accept the settlement and relinquish the vehicle to the insurer, who will then handle its disposal.

Retaining a Salvage Title

In some cases, you may choose to keep the totaled vehicle. If you retain the car, the salvage value is deducted from the agreed-upon amount in the settlement. You must also obtain a salvage title to declare the vehicle a total loss.