Have you been involved in a car accident that completely destroyed your car? Are you now dealing with insurance companies that refuse to give you the money you need to help you secure a new vehicle? While this may seem like an unbearable time in your life, just know you do not have to tackle this complex issue alone.
In the following guide, we will review everything you should know about totaled vehicles to help you understand your rights and the remedies you can pursue.
More specifically, we will explain how a claims adjuster determines whether a car is a total loss, how insurance companies decide how much money they will give you following an accident that totaled your car, and how working with an experienced car accident lawyer can help you obtain the financial recovery you deserve.
If an Accident Totaled My Car, What Does It Mean?
A totaled car typically refers to a vehicle that cannot be repaired, and the cost of fixing it is higher than its actual value. Determining whether a car was totaled in an auto accident is important since it will often mean more work for you when making an insurance claim.
It should also be noted that while some states have their own thresholds for defining a totaled vehicle if there are no laws, the insurance company will determine whether a car is deemed a total loss.
How Do You Pay for a Totaled Motor Vehicle?
While dealing with a totaled car is incredibly stressful, determining who will pay for this damage can be a confusing and challenging ordeal. In general, obtaining compensation for these damaged vehicles will depend on where you live and the insurance coverage involved. Take, for instance, the following factors:
The Insurance Coverage
If you live in an at-fault state and another driver hits your car, the at-fault driver's insurance will cover the damages that resulted from the accident. However, you may also use your own auto insurance, such as collision coverage, which will pay for the damage regardless of who was at fault.
In comparison, in a no-fault insurance state, motorists will have to turn to their own insurance coverage to cover their damages after a motor vehicle accident, even if they were not at fault for the collision.
Collision and Comprehensive Coverage
Collision and comprehensive coverage are optional supplemental insurance used to help replace a totaled motor vehicle. Without these coverages, you may have to pay out of pocket to purchase a replacement vehicle.
This type of insurance coverage is especially great if you want to ensure extra protection for your vehicle, primarily if you are driving a high-value vehicle or leasing or financing the car. In fact, most lenders require comprehensive and collision insurance if you are financing your vehicle.
Additionally, some insurers offer new car replacement coverage when your car is totaled. With this policy, the auto insurance company pays for the cost of replacing your vehicle if it's under a certain age or mileage.
Determining Who Covers the Costs of a Totaled Car
As you can see, determining who pays for a totaled car will depend on numerous factors. However, if the other driver's insurance company refuses to pay for the accident or you are unsure who was responsible for the collision, consider contacting a knowledgeable motor vehicle accident lawyer.
These attorneys can perform their own investigation into the crash, determine what happened and who was at fault, and help you figure out how you can secure the money you need to cover your destroyed vehicle.
Determining the Amount of Money You Can Receive After a Totaled Motor Vehicle Accident
Generally, when you file a claim with the insurance company, they will use several factors to determine whether a car is considered totaled and the motor vehicle's actual cash value. For example, if the cost of the car's repairs results in a percentage of the total value set by the insurance company, they will likely declare the vehicle a total loss.
The Factors the Insurance Company Uses to Determine the Actual Value of a Totaled Car
To figure out the actual cash value of the totaled car, which refers to the sale price the motor vehicle could have fetched if you sold it before the crash, the insurance company will use these factors:
- The age of the car
- The make and model of the car
- The car's mileage
- The car's condition
- The possibility of any unseen damage
- The salvage value of the car or rather the resale value of the car's parts and metal
- How in demand has the vehicle in the local market
Determining Actual Cash Value After the Total Loss of a Vehicle
After the insurance company determines that the car was totaled, it will determine the actual cash value of the vehicle and then provide you with compensation based on the vehicle's fair market value.
Yet, this does not mean that this amount will be enough to cover buying a new vehicle or even pay off your car loan. Sometimes, you may even question this amount because you believe the car's retail market value should be worth more. Plus, more importantly, if you accept the insurance amount, you will likely be unable to keep the damaged vehicle to try to obtain money for any of the parts.
Be Careful About Working With the Insurance Company
You may think that the insurance company will do everything it can to ensure you are supported and get the money you need after an accident, especially if it's your own insurer. This is usually the furthest thing from the truth. The insurance company is a business, and like other businesses, it wants to make the most money possible. To accomplish this objective, these companies must pay you less than you are entitled to.
As a result, the insurance company will try to get you to admit fault for the collision or find information regarding this incident that can hurt your case. In addition, when valuing a car after it was totaled, the insurance company will likely try to present an incredibly low assessment, even if you provide detailed information regarding the car's total value.
In these instances, the only recourse you may have is to bring a legal suit and fight for maximum financial damages. Consequently, if your motor vehicle sustained severe damage that resulted in a totaled car, it may be best to speak about your legal options with an experienced car accident attorney.
These lawyers can help you not only deal with insurance companies that will try to do everything to prevent you from getting the money you need, but they can also fight hard for every last dollar you deserve.
Other Things You Can Do After a Totaled Car Accident to Fight For Your Rights
Following a car accident that totaled your vehicle, the first thing you should do is get medical help. However, if possible, you should also take other steps to help you stay safe after this crash and ensure your legal rights remain protected. These steps include the following:
Reach out to the Authorities
If you cannot call 911 after the car collision, have someone from the accident scene call for you. This can help you get the required medical care and the police to the scene immediately.
Once the officers arrive, they will investigate the crash and document their findings in their police report, including information about the parties involved, conclusions about the accident, and other details about the crash. If you file an insurance claim or decide to pursue a lawsuit, this report can help your attorney prepare the most convincing legal case and go after the maximum compensation you are entitled to.
Get to a Doctor Immediately
If you are not transported to the emergency room after a totaled car accident, you should still get to a medical care professional immediately. These doctors can thoroughly examine you and figure out if you have any non-visible injuries, such as head trauma, internal bleeding, or spinal cord injuries.
Additionally, these doctors can prepare a medical report, which can not only detail the extent of these injuries but also provide your attorney with evidence of a link between the crash and your trauma. This can help support your case and establish the total extent of your damages.
Obtain Evidence From the Crash Scene
If you do not require emergency medical treatment and you can move around, taking pictures and videos of the accident scene can be critical for your legal claim. These photos should include pictures of the vehicles involved, the full extent of the damage to your car, your injuries, the placement of the vehicles on the road, the road, weather, and traffic conditions at the time of the accident, defects on the street, traffic signs and signals near the collision, and any other details that can help establish what happened.
Yet, do not panic if you cannot collect this information because of your injuries. After you hire a skilled car accident attorney, these legal professionals can work on obtaining all this information for you to help strengthen your case.
Exchange Details With Others Involved in the Collision
After the accident, try to obtain information from the other drivers if they are willing to talk to you. This includes their names, contact details, driver's license numbers, insurance details, and car details.
However, avoid making conclusive statements about the incident, apologizing for anything that happened, or taking any blame for something that was not your fault. These comments can be used against you by the other side or the insurance company and can impact the amount of money you can receive after the accident.
Look for Witnesses Who Saw the Crash
If people were present during the accident, see if you can obtain their personal details, including their names and contact details. These witnesses can provide your attorney with further information about the incident, including what happened and who was responsible, and offer testimony that can help collaborate your claim, which can prove beneficial when you are trying to secure maximum compensation for your totaled car.
Reach Out to an Experienced Car Accident Attorney After a Crash Totals Your Car
After a motor vehicle accident, you are dealing with enough. The last thing you want to do is worry about your totaled car and how much money you can receive for it. Thankfully, you will not have to deal with this issue alone. When you hire an experienced car accident attorney, these lawyers can tackle this situation for you and go after the monetary damages you deserve.
To do this, these attorneys can:
- Review the facts of your car crash, review the damage that resulted, and help determine your legal options.
- Perform a thorough investigation into the accident and obtain the evidence to show what happened and who was at fault.
- Discuss your questions, review your concerns, and provide the legal support you require.
- Bring in experts to prove your legal claim, including financial experts.
- Deal with the insurance company on your behalf, and fight for the settlement offer you deserve.
- If the other side is not willing to offer you the money you need, go to trial to seek maximum compensation.
If you or a loved one suffered harm and a totaled car in an accident due to another person's reckless or negligent actions and you are having a hard time securing the money you need from the insurance company, reach out to an experienced and knowledgeable personal injury attorney today for a no-cost evaluation of your case. The Nicolet Law Accident & Injury Lawyers can review your claim, discuss how they can help you fight for your rights, and determine what damages you deserve. Contact us today for a free consultation.