Total Loss Vehicle Help

It means that the cost to repair your vehicle exceeds its value.

If your insurance company declares your car a total loss, they will provide you with a valuation appraisal on the vehicle and an explanation of how the value was determined. Next, they will typically provide you with paperwork that you will need to sign. Complete and return the paperwork as soon as possible to avoid delays in issuing payment. Also, make sure you provide your claim representative with our fax number so they can send us a Letter of Guarantee.

This document is required by the insurance company. It lists the agreed-upon amount the insurance company will pay in exchange for the vehicle's title. We will contact you to verify the settlement amount and then sign and return the document to your insurance company. Your insurance company will then issue a check directly to the credit union, which will be applied to your loan balance. We will then release the vehicle's title to the insurance company. 

Please be advised that there may still be a remaining balance on your loan. If there is, it is your responsibility to pay the balance in full or contact the Credit Union to discuss other options, if needed.

Typically, the insurance company will give you the option to keep the vehicle. However, if you do keep it, the settlement amount will be reduced by the value of the salvage, and the vehicle can be re-titled as salvage. Additionally, you will want to determine if GAP (Guaranteed Asset Protection) coverage exists. 

If you decide to keep the vehicle, you must continue making monthly payments, and we will keep the title until the loan is paid in full.
 

When a vehicle is totaled in an accident or stolen and not recovered, you could owe more than the vehicle is worth. GAP insurance reduces or eliminates the difference between the insurance settlement and the loan balance. Review your documents to determine if you purchased GAP insurance through the dealership, your insurance carrier, or directly through the credit union.

Yes. Contact us at 1-800-444-4816 and let us know the agreed amount so we can make a note on your account. Make sure you have your insurance information when you call, including the adjuster's contact information. If you know the vehicle's mileage, this may also be helpful. Your representative can review your loan documents to confirm whether you purchased GAP insurance or any warranties. 

If GAP was purchased from Credit Union of Colorado, the representative will notify a branch location to start your claim. If you purchased GAP elsewhere, we can provide the contact information so you can call them to start a claim. 
 

If the GAP policy was purchased through the dealership, your insurance carrier, or from the credit union you will need to call them to open a claim. The GAP company will request documents from your loan, insurance claim, and a police report, if applicable. We suggest following up with them until they confirm they have received all the documents. Some GAP carriers may close your claim if all the required documents are not provided within a certain amount of time. 

If you purchased GAP from Credit Union of Colorado, contact us to open a claim.
 

You may be entitled to a refund. Contact the dealership where you purchased the vehicle or the warranty company directly to inquire. Typically, they will require the mileage at the time of the loss. If you qualify for a refund, it will be pro-rated and the funds will be sent directly to the credit union to be applied to your loan. If your loan balance has been paid in full, the funds will be deposited into your share savings account. 

Yes, you are still responsible for making your payment each month until your loan is paid in full. Late payments may affect your credit score. Any payments received from your insurance company, GAP coverage, or warranty refunds will be applied to the principal balance of your loan, but do not meet the requirements of a monthly loan payment. 

If you need assistance, contact us to review your options. Stay in contact with us throughout the process.
 

If a balance remains once insurance and/or GAP proceeds have been applied, you are responsible for the balance. If you cannot make a lump sum payment, we have loan options available. If you would like to discuss rewriting the balance into a new loan, contact our Member Lending Center at 1-800-444-4816. 

You may apply for a new car loan while your total loss is being processed. Learn more about our vehicle loans here or contact our Member Lending Center at 800-444-4816.