Since car insurance is considered to be a very perplexing subject, many consumers cannot understand many things if their vehicle is totaled in an accident or by other damage. If you have collision and comprehensive coverage in your vehicle insurance policy, your auto insurer will usually either pay for vehicle's repair or pay a claim to make you whole by paying the actual cash value of the vehicle. Being aware of this leads to more questions. You may be interested in what happens to your vehicle and what about the loan amount still due.

As soon as your car insurance carrier considers your car to be a total loss the process of claim payment starts. But first the details on the actual cash value of the vehicle are required. To determine them many factors are taken into consideration. The following are the factors taken into consideration, while setting the value of the totaled vehicle:

• Any damage not caused by the accident may lower the value.
• Number of miles on the car may also be a factor in the actual value of your car. This includes whether there are a high or low mileage.
• Any option that is installed is another factor affecting the cash value.

As soon as your car insurance company has determined the actual value of the vehicle they will issue a check, made out to you or you and the loan holder if there is still a loan balance to be paid. But what happens to your vehicle? Will you be given it back or not? Since the car insurance company paid the value of the car they are considered to be the owner of it.

If you want you may purchase your car back after it has been totaled, keep in mind that the company may set what they believe is a fair price As a rule, their price depends on where you live and what your local laws are.

It should be taken into account that if the car was totaled, it's title changes from regular to salvage. Once a salvage title has been issued most car insurance companies will refuse to insure the car. By law, totaled vehicles cannot be driven on the roads in almost all states. To allow such car to be driven on the roads and highways you need to have it rebuilt. Provided you've done it you may request a rebuilt title, allowing driving the vehicle in question. If totaled vehicles are not bought back by the original owner, auto insurance companies may sell them for scrap to a local junk yard.

If you make up your mind to purchase your vehicle back from the car insurance company, it is a prudent step to check up whether any auto insurance providers will even insure the vehicle first. If you have GAP car insurance coverage as well, then you may want to check with your GAP auto insurance agent to see if they have an option to the car. This could save you tons of time later on.

Again, if you decide to buy your vehicle back, you will have to pay the price determined by the car insurance company. Insurer set the price which they consider to be fair. In most cases auto insurance companies sell the vehicle for the price of what the car would be junked for. Sometimes, you will have to pay a little more.

Save extra money on your car insurance!