A woman suffered total car loss despite not being at fault during a police chase in Broken Arrow, Oklahoma. Alleged shoplifters were attempting to flee when they crashed their getaway car into Samantha Short’s van. Besides a totaled car, Short incurred several physical injuries and was out of work for days.
Total car loss entails intensive damage whereby the calculated repair costs exceed the vehicle’s value. The calculation for total loss may differ depending on state laws and the vehicle’s condition before the accident.
One advantage of totaling a car is the possibility of claiming total car loss
Recent statistics reveal that more than 5 million car accidents happen annually in the US. While not every accident results in totaled cars, having legal knowledge about it is practical.
Hiring an accident injury lawyer can be crucial, especially when you’re not at fault. They can communicate with the
Understand car total loss and vehicle owners’ rights better at The Personal Injury Center. It is an online resource center for legal learning and networking with the best local lawyers.
Key Takeaways
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What is a total loss?
A total loss occurs when the car becomes irreparable. Even if it is reparable, the repair costs exceed the vehicle’s Actual Cash Value (ACV).
ACV is the estimated market value of the totaled vehicle before the crash. Claimants should not confuse ACV with the replacement cost. Replacement cost covers the value of a new car, which is often more significant than the ACV.
The official declaration of total car loss comes from the car
Types of Car Total Loss
Auto
Actual total loss
Actual total loss happens when the crash renders a car completely dysfunctional or lost. For example, the auto accident was so intense that the claimant’s vehicle was destroyed. The engines and features have become unresponsive, and the car can no longer run.
Constructive total loss
A car does not have to be entirely dysfunctional to be totaled. A constructive total loss exists when the potential repair costs exceed the vehicle’s ACV.
Insurance companies may entertain a total loss claim process even when the car or its parts remain functional. It’s because the cost of repairing the damaged parts or features exceeds the car’s market value before the accident.
Car Total Loss Claims Process When Claimant Is Not at Fault
Parties not at fault may file a claim against the at-fault party’s property damage liability coverage. Before filing a claim, you should file a report with their insurer and ask for their cooperation.
File a report with your auto insurance company
Parties with an auto
Your
However, there are instances when the at-fault party’s
Filing a claim from your
Claim against at-fault driver’s auto insurance company
You should lodge a formal claim against the at-fault driver’s
Similar to filing a claim with your
If everything goes well, the at-fault party’s insurer will reimburse the ACV of a totaled car. In addition, most states hold at-fault parties liable for car
Suppose the opposing party does not agree that their client is at fault. You may opt for arbitration or go to court.
Types of Insurance Policies That Cover Car Total Loss
The claims you can raise against at-fault parties depend on what
Collision insurance
Collision insurance covers the cost of total loss or property damage from collisions with stationary objects or moving vehicles. It may also apply when the claimant’s vehicle sustains property damage from collision accidents like rollover or hit-and-run accidents.
The average cost of collision
Comprehensive insurance
Most car insurers bundle collision coverage with comprehensive coverage. Both
Comprehensive
- Natural disasters
- Animal attacks
- Riots
- Carnapping
- Falling objects
The average comprehensive
Property damage liability insurance
Property damage liability insurance covers damages that the policyholder causes to another vehicle. It usually does not cover damages the policyholder incurred on their car.
Obtaining property damage liability
Uninsured or underinsured motorist insurance
There are instances when at-fault parties do not have auto
Most states’ uninsured or underinsured motorist
- California
- Colorado
- Georgia
- Illinois
- Louisiana
- Ohio
Recommended Steps When Filing an Insurance Claim
The denial rate of car
Review your insurance claim
There are many ways to file an
You should review your claims thoroughly before signing them. Even minor clerical errors can interrupt the processes and cause delays.
Ensure that the claims are accurate and reasonable. Moreover, expect adjustments later but do not lowball yourself.
Schedule a damage assessment
Scheduling a damage assessment will prompt the insurer to assign a claims adjuster. This personnel will investigate the extent of damage and determine the value of potential reimbursement. Companies may deploy multiple adjusters in more complicated cases.
Most inspections last an hour or two. Aside from physical examination, the attending adjusters may ask the driver questions. Showing photographs right after the car was totaled can help them with their investigation.
Coordinate with your financing company
Even when claiming against the at-fault driver’s
Additionally, your insurer could point out whether the opposing insurer follows legal standards. Their assistance can help you protect your rights and interests throughout the claims process.
Finalize the assessment
After the inspection, the claims adjuster will determine whether the car is totaled. In addition, they will declare how much of the
The adjuster will report their assessment of the car’s ACV and deductibles, including the salvage value. You are free to disagree with the adjuster’s findings. If the claimant has no opposition, they may finalize the assessment and sign the paperwork.
Release the motor vehicle
After accepting the settlement, you must surrender your motor vehicle to the
Receive the payment
After surrendering the car, the
Compensation from car
Calculation of Compensation
Insurance companies follow the total loss formula to calculate a total car payout. After resolving the base amount, companies often make adjustments depending on the circumstances of a car crash.
The total loss formula deducts a car’s salvage value from its ACV. If the result does not exceed the estimated repair costs, the car is not totaled.
In other states,
Challenging a Car Total Loss Assessment
Totaling a car can be a heavy financial burden. After all, claimants could lose their vehicle, and the payout would often be insufficient to purchase another.
If you disagree with a total loss assessment, you should prove your car’s damages did not exceed the ACV or total loss threshold. Once accepted, you may receive appropriate compensation and still keep the car.
Negotiating With Car Insurance Adjusters
Even if you agree that your car was totaled, you may still question the proposed payout. These recommendations will help you negotiate for fairer compensation:
Research
Dissatisfied claimants may use other companies’ online calculators to exhibit that they are receiving a much lower compensation. Refer to renowned sources like the Kelley Blue Book.
Seek appraisal from a third-party
Similar to seeking a second opinion on your health, you can also seek third-party appraisers’ opinions to get fairer compensation.
Present a counteroffer
After you have done your research and reached out to third parties, you may present a formal counteroffer to the adjuster. In the counteroffer, summarize your claims and explain why you deserve higher compensation. Make sure to negotiate respectfully and professionally.
File a complaint
If the adjuster does not agree with your counteroffer, you may raise your concerns in court. If the court finds merit in your case, it may order the insurer to comply with your demands.
Hire a car accident lawyer
Hiring a trustworthy car accident lawyer is crucial. They have the necessary knowledge and experience to negotiate with
Totaled Car Under a Loan
Car crashes can happen even while a car is still under a loan. While claimants could hold at-fault parties liable and seek compensation, their insurer would prioritize paying the lender first. Consequently, car owners may only be entitled to whatever is left.
When buying under a car loan, it is advisable to purchase gap insurance. This type of
New Car Replacement
New car replacement insurance is an add-on policy that reimburses policyholders with the value of the insured vehicle at its brand-new price. Unlike other policies, the insurer will not base their calculations on the ACV. This policy can provide immense financial relief, especially in extreme situations like total car loss.
The new car replacement
Did you know?
Car owners have the option to sell their totaled car to a junkyard. Sellers must surrender the vehicle’s title certificate to the junkyard upon purchase. The salvager will later stamp the document as “JUNKED” to deter re-titling or re-registration.
Coordinate With a Trustworthy Car Accident Lawyer
Experiencing a total car loss can be devastating and costly. To remedy the expenses, vehicle owners should check on their
Depending on the state, claimants without fault gain a few advantages. One of which is holding at-fault drivers accountable and claiming compensation from their
However, dealing with
The Personal Injury Center offers a free consultation to assist interested parties in exploring their legal options. Undertake this complimentary service to seek counsel and connect with the best local lawyers.
You deserve maximum compensation for car total loss when not at fault. Connect with experienced totaled car lawyers through The Personal Injury Center.
FAQs on Total Car Loss When You’re Not at Fault
Can I keep the car despite being totaled?
Yes, owners may keep their totaled cars. However, the calculation of potential claimable coverage may change. Discuss this matter with your auto insurance representative.
Does having a totaled car affect my future car insurance premiums?
Yes, individuals with previously totaled cars may pay a more expensive premium than others. Insurance companies often adjust their prices based on the policyholder's driving history. Those more likely to get into an accident may pay higher costs.
Will a total car loss claim affect my credit standing?
No, there is no direct correlation between total car loss claims and credit standing. A person's credit score depends on their credit history and credit card accounts.
