Getting in a car accident can ruin anyone’s day. But having a car totaled makes everything worse. You can only hope that you’ve got automobile insurance Oregon to file a claim. But, when is an automobile considered a total wreck? In general, a car becomes totaled when the repair costs exceed the value of the car. The Oregon Vehicle code agrees with this stipulation because it makes repairing the vehicle impractical. 

How Do You Know If You’ve Got Coverage?

The only insurance required by Oregon for automobiles is called liability insurance. Officers can fine and penalize you if you don’t have one because it is illegal to drive a vehicle that doesn’t have this. You will find that this basic coverage offers the bare minimum, but it comes out as the cheapest, too. This pays for the following:

• Third-party personal injury
• Death-related claims of third-parties
• Other people’s property damage due to the crash

Thus, when you become embroiled in an accident, your automobile insurance Oregon will assess if a total loss is covered. Only comprehensive coverage and collision coverage can replace a vehicle deemed as a total wreck. 

These are two separate policies that your lender may require if you finance the vehicle. In this instance, you don’t own the vehicle yet and still pay installment fees. It offers the lender protection due to accidents. Moreover, both coverage may also be required if you lease your vehicle. What’s the difference between the two? Find out below:

• Collision: This lives up to its name and repairs for repairs post-collision. So after an accident, you can claim coverage. 
• Comprehensive: As the name suggests, this covers everything that may cause car damage. It includes fire, flooding, vandalism, theft, etc. 

However, if you paid for your vehicle, these two policies become optional. Thus, if you don’t have this protection, you may pay out of pocket. In addition, if your vehicle looks beyond repair, you must buy a replacement on your own dime. 

What Happens Next After a Total Wreck?

The best thing about driving with quality coverage, you can ply the roads with peace of mind. A reputable automobile insurance Oregon company will safeguard you no matter what happens on the road. However, if you get entangled in a car accident, here’s what you must do:

• Look for your policy
• Contact the insurance agent
• Initiate a claim
• Provide pictures of the accidents
• Furnish copy of police report

From there, your insurance provider will deter if the vehicle is a complete loss. But first, they will make an inspection and compare it with the vehicle’s current value versus the repair costs. If it is indeed a total wreck, you can expect a payment. They calculate this based on the actual value of the vehicle minus your deductible on your comprehensive or collision policy. 

How Do They Determine the Value of the Vehicle?

The current value of the totaled vehicle is dubbed as “actual cash value” in insurance terminology. Of course, they use prevailing market rates coupled with the following factors:

• Age of vehicle
• Its specific condition
• Mileage accrued
• Resale value in the 2nd hand market
• Comparison with other existing vehicles in the area

Thus, your automobile insurance Oregon will use those parameters when you file a claim. It can take some time to make these evaluations. They need to verify your documents, too. 

What If You Still Have a Loan on a Totaled Vehicle? 

Dealing with automobile insurance in Oregon can get tricky if you have car financing to settle. When you still have a big loan left on the vehicle, your claim check will be payable to both you and your lender. This means you must come up with a settlement agreement on how to disburse the funds. Usually, the lender gets the money first, and you get what’s left. 

Unfortunately, in some instances, you may still end up owing your lender money. Why? Because the insurance payment doesn’t cover whatever you owe. Hence, you must take responsibility for paying the balance on your car loan or lease agreement.  

To illustrate, you have a $20,000 car loan, but the current vehicle depreciated to $15,000 during the crash. Unfortunately, with collision coverage, your insurance company will only reimburse the current lower value. Therefore, if your loan payments are still minimal, you have to use your own money to make the difference.

You can consider opting for additional coverage, such as the gap coverage for loans and leases. This is additional protection that means you don’t have to pay your lender when your vehicle gets totaled. Speak with your automobile insurance Oregon agent to ask for details. It can either be part of a package or a standalone product. 

What Happens if the Loss is Not Your Fault? 

Some instances of total car wrecks fall on chance, which means no one is at fault. For example, a tree topples on top of your car or floodwaters damage everything. In these instances, your comprehensive car insurance policy will give you actual cash value minus the deductible. 

When the car wreck occurs because of another driver, the collision coverage may first kick in. However, in this instance, your insurer may seek compensation from the at-fault party’s insurance to cover the loss. In this example, you may also be given reimbursements for the deductible (if it was subtracted from the initial insurance payout).

The Car Airbags Deployed…Now What? 

When your airbags deploy, this does not equate to a total car loss. Your insurance company will first assess the situation. If they determine that the cost of repairing the airbags and the rest of the vehicle adds up to more than the actual cash value, they declare the car a total loss. 

However, if the repair costs look minimal, they pay for it. Remember, when you get into a car accident, presence of mind is key. If you do not face injuries, take photos and videos of your vehicle and the surrounding areas. Should you see key witnesses, get their names as they can help prove your claims. 

Most of all, don’t forget to check your insurance coverage. Your automobile insurance Oregon remains in force or effect if you pay the premiums. If you skip your payments, you may end up paying out of pocket. If you have any more questions about total wrecks and coverage concerns, speak with your agent.