Accidents happen, even to careful drivers. In most serious road accidents, one of the potential outcomes is that your car may be totaled. If you’re like most borrowers, your vehicle is your main source of transportation. Totaling your car can be devastating financially, especially if you have a lien on your vehicle. If you aren’t sure of what to do if your car is totaled and you have a title loan, you may be feeling overwhelmed.
It can be difficult to stay organized and know what the right steps are if your car is totaled. Max Cash Title Loans can help you learn more about the ins and outs of the title loan process. Let’s get started!
The First Thing to Do if Your Car is Totaled and You Have a Title Loan
If your car is totaled and you have a title loan, the first thing you should do is report the car accident to the police. This is particularly important if you are not at fault, but it’s critical either way: having a police report on file is a crucial piece of information. Especially if your car sustained considerable damage or if you were injured at the scene!
This report may be useful when calling your insurance and your title loan lender. You can collect information from the other driver like their identification, insurance card, and registration. Make sure to take pictures of the incident.
Reporting the incident to your lender is also important. Communication plays an important part when it comes to your finances and you want to make sure everyone involving your vehicle is aware of what happened.
What is a Total Loss Car or Vehicle?
A car becomes a total loss when an insurance company decides is not worth the cost to fix after a serious accident. Most insurance companies have specific formulas for determining when a car is totaled.
Your insurer decides your car’s actual cash value (fair market value) after an evaluation occurs.
If your car is worth less than market value, the insurer won’t pay to repair it. Instead, the insurer can essentially buy your totaled car from you. You will provide the insurer with the title of your car in exchange for your car’s worth. If your car is financed or has a title loan on it, the insurance settlement check will go to your auto dealer/lender or title loan lender first to pay off the balance of your loan. You will receive whatever money is left over, if any.
What Insurance Does if Your Car is Totaled and You Have a Title Loan
Begin by finding out if your car is totaled and considered a total loss. Many insurance companies have different guidelines for determining whether your car is totaled or a total loss. Once the insurance has determined if your car is totaled, then you can figure out how much your vehicle is worth.
The following information will help your insurance company understand the situation faster:
- Value of the Vehicle
- Vin Number
- Vehicle details like make, model, and year
- Police Report Number
- Date, Time, and Location
- Auto Lender Name or Title Loan Lender Name (if Applicable)
- Details about Insurance Coverage
You Still Need to Pay Your Loan if Your Car is Totaled and You Have a Title Loan
If you still owe money when your car is totaled and you have a title loan, you are still responsible to pay off the remaining balance. Keep that in mind when you take out a title loan!
How To Avoid This Situation
The borrower is always responsible for repayment- even in cases where there is no liability or full coverage insurance. By making sure you have the right coverage for the right state and situation, you can avoid having to pay more out of pocket than you would have had you been prepared. This is one way to protect yourself if you choose to take out a title loan!
Max Cash Title Loans Can Help You Learn More About Car Title Loans
When you call Max Cash Title Loans, you’re not reaching a lender who has only their interests in mind. You’re calling a company that cares for its customers and their well-being. We strive to provide excellent customer service every day. We provide a free service at no cost to you. Whether you have questions about a totaled vehicle, need a title loan that you can afford to pay back, or anything related to auto title loans, rest assured we are ready to help when you need us! Visit the website or call 855-561-5626 to learn more.