Brief Explanation of a Total Loss Vehicle

Although it can vary from state to state, a car is deemed totaled if it meets one or more of the following circumstances: 1) the cost to repair it exceeds the actual cash value (ACV), 2) repairing it would be dangerous, or 3) it meets the state’s total loss guidelines. So, you know your car is totaled, but you still owe on the car loan. What do you do? Well, you have at least 3 viable options. The course you choose will depend on your current economic condition, state regulation, and the discretion of the insurance company.

► Pay Off the Remaining Auto Loan Balance

An auto loan or financing agreement does not disappear when a car is totaled. Unfortunately, you are still legally obligated to pay. Sure, paying off the remaining auto loan balance is easier said than done, but nonetheless, a viable option worth mentioning. By satisfying the remainder of the loan or financing plan, you can avoid any future financing problems or approvals. You can either pay the balance in full or continue making your regular scheduled payments.

► Negotiate a Deal With the Insurance Company

If you cannot afford to pay off the auto loan or have barely made any payments as of yet due to it being a brand new car, you might be able to strike a deal with the insurance company. Do your research to see how much your car’s actual cash value is using trusted, certified sources like KBB or Autotrader, then use this data to prove that your vehicle is worth more than what the insurance company is willing to pay.

What NOT To Do

The above two options are what you can do after totaling a vehicle you still owe on, but there is one thing you should not do. It is strongly discouraged to roll the remaining auto loan balance into a new loan. This will only increase your interest payments, making it harder to pay it off in a reasonable time frame. Keep your auto loan and other loans separate.

If you are not happy with the insurance company offer for your totaled vehicle, sell it for cash on the spot to a trusted Ohio auto salvage yard! Contact GC’s Junk Cars at 513-991-4776 for professional cash for totaled cars in Cincinnati Ohio. We provide free junk car removal and instant offers! Request a free offer today!

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Whether you totaled your car today or in the recent past, you can safely assume you will not be able to drive it where it needs to go. Most people have their totaled vehicles towed to their homes, while others choose to have their cars and trucks towed directly to an auto body shop. In either case, you might be wondering who is responsible for the towing expenses. Will you pay for towing out of pocket and get reimbursed by your insurance carrier later on? Will your insurance company even pay you back? These are good questions to ask yourself considering you could possibly get stuck with the immediate, non-negotiable expense.

Continue below to learn a little bit about auto insurance basics, namely when they might cover towing fees for a totaled car, but also what you can do if your carrier will not pay for a tow.

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State Minimum Liability for Car Insurance Coverage

All drivers in all states are required to have minimum liability car insurance coverage. If you choose to, you can upgrade from this basic, state-required level of auto insurance, which may come in handy in the case that you wreck or total your car. Here is a break down of common insurance coverages, plus whether or not they pay for totaled car towing:

▷ Minimum Liability Insurance – This type of car insurance coverage only covers bodily injury and properly damages for other drivers and their passengers. It does not cover your own injuries, nor does it cover property damages, including the damage to your car. This policy would not pay for towing service.

▷ Comprehensive Insurance – This insurance coverage will cover damages to your car when it is damaged by an incident other than an auto collision. For instance, if a tree falls on your car or a flash flood comes through, your insurance will cover the repairs to your vehicle. This insurance does not reimburse for towing expenses.

▷ Collision – Collision auto insurance can be added to your existing policy and will cover auto body repairs or vehicle replacement if you are in a car wreck. However, it may or may not cover towing costs. You must check with your carrier to confirm towing coverage.

▷ Uninsured and Underinsured Motorist Coverage – If you are hit by another driver who is not insured or doesn’t have enough car insurance coverage, this auto insurance will cover you. This may or may not cover towing expenses. However, in most cases, it does.

▷ Guaranteed Asset Protection (GAP) – Also known as gap insurance, this type of auto insurance coverage will pay for remaining loan obligations in the case that you total your car. This does not cover towing in the case that you totaled your car.

▷ Roadside Assistance Coverage – When you want free or inclusive towing privileges in the case that you total your car, you will need to add roadside assistance coverage to your existing policy. Such coverage comes in different levels, such as basic or premium, and will cover most roadside emergency situations, such as flat tires, overheating engines, fuel fill-ups, locked keys in the car, fluid refills, and more.

Are you looking for a simple and speedy way to get free towing for your totaled car in Cincinnati? Contact GC’s Junk Cars at 513-991-4776 to sell a junk car to an experienced and friendly junk car buyer in Cincinnati, Ohio. We provided free junk car removal service!

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Tag Archives: free towing totaled car

Did You Total a Car With an Unpaid Loan?

Brief Explanation of a Total Loss Vehicle

How to Deal With a Totaled Car You Still Owe Money On

► Pay Off the Remaining Auto Loan Balance

► Negotiate a Deal With the Insurance Company

What NOT To Do

Will My Insurance Cover Towing Fees for a Totaled Car?

State Minimum Liability for Car Insurance Coverage