We see clients who are sometimes not injured but need help, particularly when pursuing an insurance claim. As all attorneys say, insurance companies are not your friends. They will be out for their own benefit and will be looking out for their own interests, which means that the client can end up being at a loss.
This is especially true in total vehicle accidents. When your car is completely destroyed in an accident, are you being paid the actual value you are entitled to? In this article, we will tell you what your options are and the advantages of having a personal injury attorney by your side.
And despite being a personal injury law firm, being injured is not a prerequisite for us to help you. If you need help regarding your insurance, you can count on the attorneys at Louis Berk Law Firm.
What Does ‘Total Loss’ Mean?
A total loss is a vehicle that is not financially repairable. In other words, it would cost more to repair than the car is worth, and there are a few reasons why insurance companies may insist on paying you that lower figure.
A total loss usually means that based on the economics of the amount of damage done to the vehicle, it no longer makes sense to repair it. Therefore, the insurance company has a legal responsibility to replace your car. They have an obligation to pay you the fair market value of what it would cost you to replace the exact vehicle you had, the same year, the same make, the same model, the same mileage, the same option, and the same wear and tear.
Some companies may consider your car accident a total loss even if the cost to repair it is lower. Your attorney at our personal injury law firm will ask the insurance company what source they considered when determining the value of your car.
What If the Insurer Says My Car Is a Total Loss
If the insurer declares your car a total loss, They will only pay you the fair market value of your vehicle on the day of the accident. Unfortunately, the insurer is only required to pay for damages up to the fair market value of the wrecked property, even if you owe more than the value of the car on your car loan. Let’s look at an example of how this happens.
Let’s say that on the day your car was declared a total loss, you owed $14,500 on your car loan, but the current fair market value (i.e., book value) of your car was only $12,000. The insurer will only pay you $12,000 for the value of the vehicle, leaving you with $2,500 to pay on your car loan, even though you no longer own the vehicle.
Also, if an insurer declares your car a total loss, it has the legal right to take it and can sell it in the secondary market to recoup some of the losses. It is possible to convince the insurer to let you keep the car, but somewhat unlikely. The insurer has the absolute right to declare the vehicle a total loss and almost always does so.
What if I Think My Car Is Worth More?
Insurance companies have their programs they use and their software, tools, and databases they use to assess what a car’s replacement value is. But at the end of the day, insurance companies don’t take into account the particular condition of the vehicle or unique features of the vehicle, such as the rarity or desirability of the car in the fair market. Sometimes insurers will use a lower quality of the vehicle, for example, that the car was in worse condition than it actually was, to try to devalue it, so you can negotiate in some circumstances if you know what you’re doing.
If you think your car is worth more than the insurance company decided, you can try to negotiate. Be prepared to show how much the car would sell for in your area.
- Get quotes from used car dealers.
- Look at prices online and search local ads for similar vehicles.
- Document any particular features or custom parts on your car.
We are personal injury attorneys, so we work on injury cases. Our attorneys are well versed as many of our clients have been in car accidents and got injured. In our personal injury law firms, you can contact our expert attorneys to assist you in trying to get the insurance to change your mind and offer you a better deal.
Salvage Title: Keeping a Wrecked Car
Sometimes, you must keep your wrecked car and repair it, especially if it has sentimental value or if you believe it is still safe to drive. In this case, you can ask the insurance company to let you keep the damaged vehicle.
You will still receive some compensation, but it will be less than the total value of the car because the insurance company will deduct the residual value of your vehicle from your salary. Remember that keeping a wrecked car can involve additional complications. Obtaining a salvage title and approving a safety inspection is necessary before you can legally drive the vehicle again.
If you want to keep your car, let the insurance company know as soon as possible. The insurance company will deduct the salvage value of the vehicle from the amount they planned to pay you.
When Disputes Arise: Contesting the Compensation Amount
You may disagree with the value of your car or the cost of repairs. If you believe your vehicle is worth more than the insurance company has assessed, or you disagree that it is a total loss, you can dispute their decision.
This process can be complicated and involves obtaining independent appraisals, negotiating with the insurance company, and potentially taking legal action. This is where a personal injury law firm can help. Our professional help will be of great use to you in disputes with insurance companies.
Final Words
At Louis Berk Law Firm, we have the experience in dealing with insurance companies. Let our bilingual attorneys assist you. If you need any help with your crash or have suffered any type of total loss accident, contact us today for a completely free consultation.