When a company vehicle is declared a total loss, contact your commercial auto insurer within 24 hours, provide the accident report and vehicle details, and begin the claim filing process.
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Gather Essential Information Immediately
Collect the police report number, driver's license, VIN, mileage, and any photos of the wreck. Secure receipts for towing, storage, and rental cars, as these will support reimbursement claims.
Notify Your Insurance Provider
Use the insurer's preferred channel—usually a dedicated claims hotline, online portal, or mobile app—to submit the initial report. Provide the policy number, incident date, and a concise description of how the vehicle was totaled.
Complete the Claim Form Accurately
Fill out the commercial auto claim form with precise figures: pre‑accident market value, any outstanding loan balance, and the vehicle's depreciation schedule. Attach the police report, photos, and receipts. Inaccurate or missing data can delay settlement.
Work with the Adjuster
A claims adjuster will inspect the wreck (or review photos) to confirm total loss status. Be ready to answer questions about usage patterns, mileage, and any modifications that affect value. Prompt cooperation speeds up the appraisal.
Understand Settlement Options
Insurance may offer a replacement‑cost settlement or actual cash value (ACV) based on the vehicle's depreciation. Review the offer against your own valuation to ensure you're not under‑compensated.
Finalize the Process
Once you accept the settlement, the insurer will issue payment, typically to the policyholder or lienholder. Keep all correspondence and final statements for accounting and tax purposes.
Key Checklist
- Report the claim within 24 hours
- Gather police report, VIN, mileage, photos
- Submit claim form with accurate vehicle valuation
- Cooperate with the adjuster's inspection
- Review settlement type (replacement vs. ACV)
- Document final payment for records
Comparison of Settlement Types
| Settlement Type | How Calculated | Typical Outcome |
|---|---|---|
| Actual Cash Value (ACV) | Market value minus depreciation | Lower payout, may require additional funds for replacement |
| Replacement Cost | Cost to purchase a comparable new vehicle | Higher payout, covers full replacement |