What to Do If Your Car is Declared a Total Loss After an Accident

Being told that your car is a "total loss" after an accident can be overwhelming. At Quattrochi, Torres, and Taormina, our experienced Auto Accident Attorneys and Personal Injury Lawyers are here to help you navigate this challenging situation. Here’s what you need to know if your car is declared a total loss and your insurance claim options.

What Does "Total Loss" Mean?

An insurance company will declare your car a total loss when the cost to repair it exceeds its actual cash value (ACV). The ACV is the market value of your car at the time of the accident, not what you originally paid for it. This can be surprising, as vehicles depreciate quickly.

Determining Actual Cash Value

To determine your car’s ACV, insurers typically look at the sale prices of similar vehicles (same model year, make, condition, and options) in your area using tools like Kelley Blue Book. If you disagree with the insurer’s valuation, you can dispute it by providing evidence such as recent sale prices for similar cars.

Your Options After Your Car is Totaled

When your car is declared a total loss, here are the steps you should take:

1. File an Insurance Claim: Report the accident to your insurance company and the insurer of any other involved parties as soon as possible.
2. Tow Your Car: Take your car to an auto shop approved by the insurance company to streamline the claim process.
3. Gather Paperwork: Provide the insurance company with your car’s title and any other necessary documents.
4. Research ACV: Before accepting an insurance payout, research your car’s value using online tools and local market data.
5. Review Your Car Loan: If your car is financed, understand how much you owe on your loan. The insurer will pay your lender first and you’ll receive any remaining funds.

Can You Keep a Totaled Car?

You can choose to keep your totaled car, but the insurance company will deduct its salvage value from the payout. Consider whether it’s financially sensible to keep a car that requires extensive repairs and reinsurance.

Disputing an Insurer’s Decision

If you believe your car should not be totaled or disagree with the ACV, you can:

• Hire an Appraiser: Get an independent valuation.
• Negotiate: Discuss your findings with the insurer.
• Consult a Lawyer: For significant disputes, seek legal advice.

Insurance Coverage Types

• Liability Insurance: Covers damage to others if you’re at fault.
• Collision Coverage: Pays for your car’s damage regardless of fault.
• Comprehensive Coverage: Covers non-collision-related damage, like theft or weather damage.
• Uninsured Motorist Insurance: Covers your losses if the at-fault driver lacks adequate insurance.

Understanding Gap Insurance

Gap insurance covers the difference between your car’s ACV and the remaining balance on your loan, which can be crucial if you owe more than the car’s worth.

Learn what to do if your car is declared a total loss after an accident. Quattrochi, Torres, and Taormina explain your insurance claim options. Call for a free consultation.

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