Mini Big Hype
Image default
Finance TOP STORIES

Want to Know the Common Car Valuation Procedure Adopted by an Insurer? Read This!

Contents

When your car suffers irredeemable damage due to a road incident, most vehicle insurance companies offer you a new car replacement provided the accident occurs within a specific period (mentioned by the insurer) of purchasing a car or pay off depending on your policy type (market value / agreed value) if you have a comprehensive car insurance policy. You may then use the money to purchase a new vehicle or hopefully be able to clear the dues of your car loan if your earlier vehicle was financed.

Knowing how even the best car insurance companies estimate a vehicle’s value may open several avenues for negotiation with your car insurance provider. However, you must know every insurer assesses the value of a car differently. The following steps are a part of the general car valuation procedure and are not final and binding. Talk to your insurer to know how they handle vehicle repair and replacement claims. For now, we will tell you the most likely steps your insurer may take to complete your car’s assessment.

How does a car valuation process unfold?

#1

Once you report a car accident then your insurer will require an accredited vehicle assessor to evaluate the damages. The foremost step involves determining if your vehicle can be repaired or is a write-off. However, even if a car can be repaired in a few cases, it may be declared a total loss. The likely reason could be the repair costs may exceed some percentage of the vehicle’s value. The percentage differs from insurer to insurer.

#2

If the vehicle assessor concludes your vehicle is repairable, he or she will then estimate how much this will cost. 

#3

The insurance provider will then check the appraisal reports submitted by the assessor and decide whether it is worth repairing the car or declaring the car a total loss and paying you out according to the car’s value noted on your insurance policy. If the situation meets all the right criteria, your claim will be approved and you will be reimbursed (if the car is deemed repairable then the insurer will pay to have it fixed in a professional repair shop).

Once you receive the money, you may choose what to do next with it. You may go ahead and buy a new vehicle or close your vehicle loan and relax. The critical point to remember is if you wish to make a successful claim, you must report an accident to your insurer as quickly and accurately as possible, whether you are at fault or not. Make sure there are no lapses, so you still have the trust and backing of the insurance company.

Also, strive to have credible evidence to support your comprehensive car insurance claim to prove your point when you are not at fault in a road accident, and the driver at fault is in denial mode. The best car insurance provider will help you recover your vehicle damage costs regardless of who is at fault.

Related posts

What qualities help a trading platform to stand out from the crowd?

admin

A Comprehensive Guide to Buying Bitcoin in Pakistan

admin

What Exactly Is Sustainable Investing, and Is it Important To Entrepreneurs?

Salman Ahmad

Leave a Comment