If you are in a car accident and your car is completely totalled then you may expect a brand new replacement car to show up on your doorsteps in a week or two. If you are waiting around for this, then you will be waiting a long time. Unfortunately, even the most comprehensive coverage plans will not buy you a brand new car if yours is totalled. Instead, you will generally be offered a lump sum of how much the car is worth at the time of the accident.

Replacement Cost and Actual Value Costs

If your car is brand new then the difference between the replacement costs and the actual value costs may not be that much. Some providers offer GAP cover which will offer you compensation to buy a brand new car. However this is going to cost more on your policy and is only worth your while if you have just invested in a new car.

As time goes by, the true value of your car will decrease according to how many years it is, how many miles it has done and other factors. Even if you never drive your vehicle the value will still decrease every year as new, more high tech models take its place. What this means is that if you paid 10,000 pounds for your car three years ago, you cannot expect 10,000 pounds from your insurance provider. Instead, you may be offered anywhere from 6,000-9,000 pounds depending on the condition of the car before it was totalled.

Keep in mind that there are several factors that will determine your actual value cost of your car as well as the amount paid out by different types of car insurance. Mileage is a big one as is the overall condition of the car. Servicing and maintenance, parts and repairs and previous accidents will all impact your car's worth. Whether it is a manual or automatic transmission, whether it was used for motorway or city driving, whether it includes safety features and extras will also impact how much you can expect from your insurance provider.

Car Valuation Procedure

You can get an estimate of how much your car is worth by checking with a UK used car valuation guide. There are several different guides online that you can reference. If you are concerned that your insurance provider's payout is not enough, you can challenge it by looking into the different valuation costs of similar vehicles in your car's pre-accident condition.

Keep in mind that in some instances your insurance provider will not be responsible for compensating you for your losses if the other driver is found at fault. If this is the case, then you will need to discuss how much you are offered through the other driver's insurance company. If the other driver does not have adequate insurance and if you have comprehensive car insurance, then your provider may be able to offer you a better pay out.

Car insurance can help pay for several different costs associated with a collision or other accident. However, it cannot make the whole thing go away. If providers offered a brand new car replacement on their policies, then people would crash every few years just to get a new vehicle.

If you are looking for a brand new vehicle in the event of an accident, then compare policies that include vehicle replacement insurance or GAP cover. Find out how much cover is offered in the event of a complete write off and whether your insurance will pay if your car is totaled before you sign to any policy. The more informed you are, the less surprised you will be if you are in an accident down the road.