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Filed under auto insurance claims questions.

If your Car gets Totaled How Will An Auto Insurance Claim Work?
First of all, once you file a claim the insurance company will dispatch a claims adjuster to verify the damage. They will only act on the recommendations of this adjuster. He has to agree with you that the cost of repair will not be worth doing. The computation for a car that was totaled will be based on actual cash value under the insurance’s research guides, the market rate, and mileage of the car. This takes some time but the insurance is usually under pressure to resolve the issue quickly.

Thus, if everything is in order and you agree with their estimate, then they will simply issue you a check minus the deductible. After you have received payment, the car now belongs to the insurance company and they have the right to do what they want with it. Many insurance companies either sell the car for redeemable parts or as junk. You may keep the car if you make prior arrangements with the insurance company.

The situation is different for leased cars or cars that are not fully yet owned by the policy holder. Most car rental companies have gap insurance that helps them recover the difference in the value estimates. For mortgaged cars, the car owner will still be obligated to pay the lender. Auto insurance claims: Can I use my bonus to insure two cars?

The NCB or No Claims Bonus can help you lower your premiums but there is no standard in the industry. Each insurance company has its own SOP for this although generally if you have not made a claim on your insurance for 5 years, you can request for a 50 to 75% discount. Many companies will not entertain requests for NCB after 5 years.

If you have 2 cars, you cannot apply NCB on one policy to both cars. There is no “sharing of NCB” and neither can you interchange policies and cars assuming you have one policy each for the 2 cars. The insurance companies are usually very strict about issuing discounts and the paperwork and details must match or the request is invalidated.

The exception to this is if your insurance policy covers both cars. Then, you will be paying insurance premiums on both cars and the No Claims Bonus can apply for both cars.  This is known as multiple car insurance which not all car insurance companies offer, so be sure to consider this next time your insurance policy is up for renewal.  You might want to start shopping around for companies that entertain this type of plan.

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