Ever wondered what happens when a vehicle gets completely wrecked in an accident? Can you make an insurance claim for it? And how much compensation can you expect?
Well, don’t worry! This article will walk you through all the essential details about claiming insurance for total loss vehicles. Get ready to uncover everything you need to know!
What is a total loss vehicle?
There are two situations that can determine it:
- The vehicle gets stolen.
- The vehicle is involved in an accident and gets damaged to the point where it can’t be fixed or used anymore.
Most vehicle owners usually get concerned about the second situation mentioned above.
When will your vehicle be considered a total loss?
It’s important to grasp that a vehicle becomes a total loss when the repair expenses surpass the vehicle’s current worth. When an insurance company certifies a car as a total loss, it means the vehicle is considered “Beyond Economic Repair”.
This basically means the car is either unsafe, cannot be fixed, or the cost to repair or replace it is more than its actual value.
How much compensation will you get?
Simply put, the insurance company determines how much money you’ll receive based on the coverage amount for your vehicle. Remember, when you renew your vehicle insurance, you choose either the market value or agreed value for your coverage. If you chose market value, your compensation will match the current market value of your car during a total loss or accident.
On the other hand, if you have agreed value coverage, you’ll receive the exact amount specified in your policy. For example, if your agreed value is RM30,000, your compensation will also be RM30,000.
Who is eligible to make a claim?
If you have comprehensive insurance, you can make a claim with your insurance company when your vehicle gets completely wrecked in an accident.
If you have a third-party, fire or theft policy, or just a basic third-party policy, sorry to break it to you, but you can’t make that kind of claim.
What will happen to the total loss vehicle?
If the insurance company says your car is completely wrecked and you agree with them, you have two options:
- Keep the car for yourself.
- Give the car back to the insurance company.
If you decide to keep the car, the insurance company will pay you less money than they should.
We hope this article has provided you with enough information to prepare yourself to face unexpected situations. Always be safe on the road and secure yourself and your vehicle with the right auto insurance!
Visit Bjak now to enjoy exclusive discounts, attractive prices and benefits for your auto insurance without any hassle!
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
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