What to Do When Shopping for a Car After an Auto Accident

 

What to Do When Shopping for a Car After an Auto Accident

Navigating life after an auto accident can be overwhelming, especially when it involves replacing your car. If your vehicle is deemed a total loss, there are several steps to follow before shopping for a new one. Here’s a breakdown of the process to help you move forward efficiently.

1. Confirm the Total Loss

The first step is to confirm whether your car is a total loss. This decision lies with your insurance company, not the repair shop. Even in severe accidents, this determination can take anywhere from 3 to 10 days. Stay in close communication with your insurance adjuster to get confirmation as quickly as possible.

2. Wait for the Settlement

Once your car is declared a total loss, you’ll need to negotiate the value of your vehicle with your insurance company. Remember, they aim to minimize payouts, so knowing the fair value of your car is crucial.

• Use JD Power’s Clean Retail Book Value as a benchmark.
• Include your area’s sales tax in your calculations.

Be prepared to negotiate until you reach a fair settlement. Keep in mind this process can take some time, so patience and persistence are key.

3. Gather Important Documents

Before buying a new car, ensure all your documents are in order:

• Warranty and GAP Insurance: If you had an extended warranty or GAP insurance on your previous vehicle, cancel it as soon as possible. While your insurance company may attempt to cancel these for you, the refund belongs to you unless you are making a GAP claim.
• Loan Documentation: If you’re making a GAP claim, get started immediately after receiving confirmation of the total loss. GAP claims can take time to process, and you’ll need to provide proof that your current car is paid off—or will be—when purchasing your next vehicle.

4. Consider the Underwriting Process

When buying a replacement car, the lender’s underwriter may require proof that the total loss settlement is complete. This ensures the balance on your old vehicle has been cleared or will be paid off by the insurance company or GAP claim.

A Smooth Transition to Your Next Vehicle

Replacing a car after an accident is a multi-step process, but being organized and proactive will save you time and stress. At Mike’s Car Store, we’re here to help you get back on the road. Our straightforward buying process, including our Keys 2 Empower Program and a 172-point presale inspection, ensures you’ll find a high-quality vehicle with no surprises.

If you’re ready to start shopping, we’ve got a wide range of reliable options and the fastest transaction times in the industry. Let us make the transition to your new car as smooth as possible.

Contact us today and drive away with confidence!