What should I do with my car after it is totaled in New Jersey?

"My car was hit by an uninsured driver in NJ and the insurance company thinks it might be totaled. I have collision coverage, so I am covered.

They want me to let them tow it to their total loss location. Should I let them or have them tow it to a repair shop?"

Answer
“Many insurance companies use algorithms during the claim reporting process to determine if the vehicle is likely a total loss. They consider the year, make, and model of the vehicle, as well as the extent of the damage reported.
If the car is a total loss, it is cheaper for them to tow the car to their total loss location than to a repair shop. If they tow the car to a repair shop and then determine that the car is totaled, they have to tow it again.
Although collision coverage typically covers the tow, the process is usually easier and quicker for you if you let the insurance company tow the car to their total loss location. The only reason not to tow it there would be if you intend to keep the vehicle and repair it.
Let your insurer know what your decision is as soon as possible because your collision coverage may not cover excess storage fees.”
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Shannon Martin
Answered on May 13, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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