If you’ve been in an auto accident and your car is declared “totaled” (also known as a total loss), it means that your car is either beyond repair or the cost of repairs exceeds its value. In such a situation, there are several important things you should expect and be aware of. This article will guide you through the process of what happens after your car has been totaled.
Understanding What “Totaled” Means
When your car is considered totaled, it means that it is no longer viable to fix it. Whether due to severe damage or high repair costs, the insurance company determines that it is more economical to declare the car a total loss.
The Insurer’s Obligations Towards Your Totaled Car
The insurance company is responsible for compensating you for the actual cash value of your totaled car. If there is a disagreement between you and the insurer regarding the value, your insurance policy may have an appraisal provision that allows for the involvement of independent appraisers or alternative methods to resolve the dispute.
To determine the value of your car, the insurer can use different methods, such as offering a comparable replacement car in your local area or providing a cash settlement based on the actual cash value of similar cars in your area. If the insurer has difficulty finding comparable cars locally, they may extend the search radius in increments until suitable alternatives are found. It’s important to note that the insurer must also include applicable taxes, license fees, and other ownership transfer fees when calculating the actual cash value.
To ensure that the offered amount is reasonable, you can request a “total loss valuation report” from the insurer. This report will provide you with the comparable auto data used in determining your vehicle’s value. Remember that insurers are not obligated to provide this report unless you specifically request it.
Disagreements with the Insurer Regarding Your Car’s Value
Disagreements with Your Insurer
If you and your insurer are unable to agree on the value of your car, your auto policy may include an appraisal provision. This provision allows both you and the insurance company to hire appraisers to independently assess the car’s value.
Disagreements with the Other Party’s Insurer
If the other party is at fault for the accident and you can’t reach an agreement with their insurer on the value of your car, you have the option to file a claim with your own insurer if you have collision coverage. Your insurer will then compensate you for the loss of your totaled car. They may also pursue reimbursement from the at-fault driver, including any deductible you paid. If you don’t have collision coverage, it’s advisable to seek legal advice in such situations.
Keeping Your Totaled Car
If you decide to keep your totaled car, the insurance company will deduct the salvage value from the total settlement amount. It’s important to note that the insurer is required to report your totaled vehicle to the appropriate authorities, such as the Department of Licensing.
FAQs
Q: What does it mean if my car is “totaled”?
When your car is totaled, it means that it is either beyond repair or the cost of repairs exceeds its value.
Q: Can I dispute the value of my totaled car?
Yes, if you and your insurer can’t agree on the value, you may have the right to hire an appraiser to assess the car’s worth.
Q: What if the other driver is at fault and we disagree on the car’s value?
If you have collision coverage, you can file a claim with your own insurer, who will pay you for the loss of your totaled car and may seek reimbursement from the at-fault driver.
Conclusion
Dealing with a totaled car can be a daunting experience, but understanding the process can help you navigate it more effectively. From knowing what “totaled” means to understanding your rights in case of disputes, being informed will ensure you make the best decisions for yourself. Remember to communicate openly with your insurer and seek legal advice if needed.
