The Insurance Company Says My Car is a Total Loss
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| my car is totaled now what |
What Happens When Your Car is Totaled?
If your car was damaged or destroyed because of another driver that driver’s insurance may be required to:
A- Repair Your Vehicle
B- Provide a Rental Car
C- Pay for the Value of your Vehicle; and
D- Pay for Diminished Value
1-Repairing a Car
You are allowed to take your car to a repair shop of your choice. The insurance company is required to pay to have your car to the same or similar value as it was prior to the collision. They are also required to compensate you for diminished value which is the difference of the value of the vehicle prior to the collision and its value after being repaired. Be sure your car is repaired to your satisfaction.
2-Totaling a Car
If the repair estimates are more than your car is worth, the insurance company will likely total your car and pay you its actual cash value rather than pay to fix it. Insurance companies typically use the National Automobile Dealers Association’s Used Car Guide to determine the value of your car.
The company’s offer might not recognize your car’s condition, special features, or value on the local market. Be prepared to negotiate with the company to get what you believe is a fair deal. A company might raise its offer if you can show that your car would sell for a higher price in your area. Get written price quotes for a similar automobile from several used car dealers, or look in the classified section of your local newspaper for used car prices.
If you’d prefer to have your vehicle repaired instead of totaled, you can keep your car if you are willing to subtract its salvage value from the insurance settlement. Make sure the cost to repair the car will not exceed the car’s actual cash value. To find out the salvage value, contact local salvage yards for estimates.
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| Car is Totaled |
If your car has been totaled, determine the fair market value of your car by consulting reference sources such as the Kelly Blue Book, NADA Used Car Guides or Edmunds. These publications provide accurate information for most makes and models of cars.
3-Getting a Rental Car
There are several types of coverage that will pay for you to get a rental car while yours is in the shop:
A- If the other driver caused the accident, his or her liability insurance will pay for a rental car.
B- If the accident was a hit-and-run or the other driver was uninsured and at fault, your UM/UIM property damage coverage will pay for a rental car.
C- If your car was stolen and you have comprehensive insurance, your company will provide a set amount each day, up to your policy’s limit, for a rental car.
D- If your car is being fixed or replaced for some other reason, your insurance company won’t provide a rental car unless you have rental reimbursement coverage.
What if I was injured?
If you were injured in a car accident that was caused by another party you may be entitled to several different types of compensation depending on the type and degree of your injuries. Those damages include, but are not limited to:
1-Medical Bills – The reasonable and necessary medical bills that you have or may have in the future that were caused by the collision.
2-Loss of Earning Capacity (AKA Lost Wages)- Compensation to make up for the loss of income that was caused by the accident.
3-Pain and Suffering – Compensation to make up for the physical pain that you feel as a
result of your injuries that were caused by the collision.
4-Mental Anguish - Compensation to make up for the mental toll that an injury and/or a car wreck takes on an individual.
5-Physical Impairment – Compensation to make up for your inability to do certain activities after the wreck that you were able to do before.
6-Physical Disfigurement – Compensation to make up for a change in your appearance
caused by the car accident.
7-Punitive Damages – Damages to punish the wrongdoer for particularly egregious actions, i.e. drunk drivers that cause an injury.
Every case is different and you may be entitled to all or none of the damages outlined above. It is also important to understand the amount that you may be entitled to is going to be different in every case and just because you heard someone got a certain amount in their case doesn’t mean you will be entitled to the same amount.