How to Handle Insurance Claims for a Total Loss on Your Car or Camper

Welcome to today’s blog post. Yesterday, I posted a teaser video, which is something I’ve probably never done before, but I just got my camper back from the dealership after substantial damage and it wasn’t a total loss, although it should have been.

My travel trailer was at the dealership for more than three months. During that time, I was still making monthly payments on it, even though it was just sitting there, which is part of the frustration. Telling me in early January that it would be ready in two weeks didn’t make me feel any better.

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Up to a few days ago,  I never bothered to look at the status of the claim with the insurance company or the dealership because I figured they would be communicating, which they were, just not how I expected.

So today’s blog post focuses on what you need to know if your car, camper, RV, or anything else should be considered a total loss. Mind you, my wife’s car was a total loss thanks to my neighbor not securing or putting away aluminum panels that came off during Hurricane Idalia. Those panels hit the travel trailer, then the car.

In mid-December, we were finally able to drop off the car at the body shop. Of course, they were backed up because of Hurricane Helene. Within a day, the insurance company was there, and even though they had already seen the car earlier, they decided it was a total loss.

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That was quick, but when I looked at the payout for the camper, I was surprised it also wasn’t a total loss. It seemed to me the insurance company paid the value of the travel trailer, if not more.

After two contentious discussions with the assigned claim representative, they admitted they were wrong. They kept saying their software hadn’t flagged it. The magical number seems to be 70%—once you get to 70% of the value of your camper or car, they start to consider whether to total it or not.

Of course, the insurance company didn’t believe me, so I confirmed the fair market value of the camper through the dealership. They used NADA and other sources, and the high-end value was less than $200 from the payout, and the low-end value was $4,000 less than the payout. So there’s no doubt that my camper should have been totaled.

Follow Up on Your Insurance Claim When Facing a Total Loss

The insurance company refused to declare a total loss for my camper, not even a salvage title, but that was expected. That would have meant they paid once to fix it, and now again to total it or to do a savage title.

In essence, I guess I have a brand-new trailer since most of the exterior shell was replaced, the awning, plus interior damages. But here’s where my advice comes in. You have to stay on top of your insurance claim.

I assumed that the dealership would continue submitting invoices and supplements, and at some point, the insurance company would step in and say, “Wait a minute, enough with this. It’s too much already. Let’s stop right here, total this, and move on.” But that never happened. It never got flagged, and I assumed it would, just like it did with the car.

So, stay on top of insurance claims. You should be able to obtain all your insurance documents and invoices through the website portal of your insurance company. Figure out what the value of your vehicle is, and then determine 70% of its value.

Ultimately, it’s to my advantage that the camper was not totaled. I’ve already lost $8,000 on the car since I needed to replace my wife’s car. As I said many times before on social media, hurricanes always cost you money. As much as you think you’re going to win, you’re not.

In part, depending on the issues, I’ve discussed in my blog posts how any of us could get into more debt involuntarily. This is one of those examples. I was planning to be debt-free this year. This situation has just added to it. The monthly payments are about the same, but the car note has been extended.

In my scenario, it was better that I avoided a total loss. If you have an older vehicle or sufficient equity, then the total loss might be a better option. But the key is to remain in the loop. Ultimately, when I trade it in, I know I’ll lose trade-in value, but I’ll cross that bridge when the time comes.

Any questions or comments, feel free to post them in the comments section of my YouTube video. I’ll be more than happy to respond.

Drive safe, and if you’re out there camping, I’ll see you on the road soon. Really soon, because we haven’t done it in four months. Take care, everybody.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Please note that this transcript was edited for clarity. The transcription may contain inaccuracies or errors due to the limitations of transcription software and the quality of the audio. I have made every effort to ensure the accuracy of the transcription but cannot guarantee it.