It's a write-off
Having a car accident is a very stressful occurrence. If you are unsure of the processes involved after the accident it can compound the situation. Dealing with your insurer can be easy if you know what needs to be done once an accident has happened.
Related: If my car is written off, How much will I get?
If you’ve been involved in an accident, remember these steps:
- Record the date, time, and location of the accident.
- Note the make, model, and license plate numbers of all vehicles involved in the accident.
- Collect the personal details (name and ID number) and insurance details of all the drivers involved.
- Get the contact details of any witnesses at the scene too. This may help you in the future if there is ever a dispute.
- Report the accident to the police station in order to get a case number, which you’ll need for insurance purposes.
- Submit your accident report to your insurance company.
Once you have informed your insurer of the accident and the location of the vehicle, the insurance company will send out an assessor to check the damage and determine how much repairs will cost, and assess the car’s cash value. If the cost to repair the vehicle exceeds the value of the vehicle the assessor will declare the car a write-off.
It is important to remember that if the vehicle is under finance it is still the property of the finance house, and you are required to inform the financier that the vehicle is written off.
The insurance company and finance house will sort out the balance of the vehicle's value and pay out the balance to you if there is one due.
Another important thing to remember the moment you sign the finance agreement, you owe the financier more than the car is worth. This situation can last for as long as three years as you first pay off the interest before getting to the capital balance. Top-up cover ensures that any shortfall that may arise from this situation is covered by your insurance, so seriously consider Top -Up cover on your policy, or you may find yourself liable for the outstanding balance.
Once the claim has been settled and monies paid out you are free to go and look at a replacement vehicle
