Scrap Cars and Junk Car Removal Blog News

When Your Car is Declared a Total Loss Scrap Junk Vehicle

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Most likely you know someone who has been in a total loss accident, perhaps even experienced it yourself.  What is the process by which an insurance company declares your pride and joy a total loss vehicle, fit for the scrapyard?  This condition is met when:

• Damage to the car is so extensive that it cannot be repaired to provincial safety standards

• Repairs will cost more than the replacement value of the vehicle

If your insurance agent assumes the worst, then these are your next steps:

• Remove plates and personal effects and make the keys available to your adjuster

• Advise your finance/leasing company if applicable and give them access to discuss the claim with your insurance company.

• Submit the insurance claim forms and other documentation they request

Once successfully processed, your insurance company will pay the cash value of the scrap car minus deductible.  They will transfer the title to their company and sell the junk car to a salvage company, or you can request to keep the junk car.

How do insurance companies determine the car value?  Your prized possession is invaluable to you and has been with you like a faithful friend.  But insurance companies have a much more impartial and impersonal approach to determine its actual cash value.  Typically the pricing of similar vehicles in your local region are assessed and the prior accident status is considered, including mileage, vehicle trim level and any other problems not caused by the accident.

What if I want to keep my total loss scrap vehicle?  You may want to keep the old car for parts or pass it off as a new post-modern metal art sculpture.   Your insurance company may be able to accommodate your request, minus a fair salvage amount valuation.  Just be sure to check with your local Ministry of Transportation if there are any restrictions or conditions on ownership of a total loss vehicle.  For example, you may need to have a salvage branding on the title.

Do you have rental reimbursement coverage?  Then you have a temporary solution until you find the time to search for your next car.  Make sure that you are no longer using a rental car and the scrapped car is not registered in your name before removing the scrap car from your insurance policy?