WISCONSIN CAR ACCIDENT & PERSONAL INJURY ATTORNEYS.

Understanding the implications of a car being declared “totaled” is crucial for anyone who finds themselves in the aftermath of a vehicle accident. The term “totaled” carries significant legal and financial weight, influencing decisions made by insurance companies, impacting legal rights, and dictating the next steps for car owners. This article aims to demystify what it means for a car to be considered totaled, guide you through the insurance evaluation process, and elucidate your rights and options.

With the assistance of GLR Injury Attorneys, navigating the complexities of dealing with a totaled car becomes a manageable endeavor, ensuring you are well-informed and adequately prepared to make crucial decisions.

What Does It Mean When a Car is Totaled?


When an insurance company declares a car “totaled,” it means the cost of repairing the vehicle exceeds a certain threshold of the car’s value before the accident. This threshold varies but is typically between 50% to 70% of the vehicle’s pre-accident value. The determination involves:

Assessing the car’s value: Before the accident, using resources like the Kelley Blue Book.
Estimating repair costs: Post-accident, through detailed inspections by professionals.

The term “totaled” encompasses various definitions, including “total loss” and “write-off,” all indicating that financially, the car is better off replaced than repaired.

How Insurance Companies Determine a Totaled Car


The process of determining whether a car is totaled is both systematic and complex, involving several key steps:

Vehicle Evaluation: Insurance adjusters assess the damaged vehicle to estimate repair costs. This involves a detailed inspection of the vehicle’s condition, including structural and cosmetic damage.
Comparing Costs: The estimated repair costs are then compared to the vehicle’s actual cash value (ACV) before the accident. If repair costs exceed a certain percentage of the ACV—commonly 50% to 70%, depending on the insurance company and state laws—the car is deemed a total loss.
State Regulations: It’s important to note that the threshold for declaring a vehicle a total loss varies by state. Some states have specific formulas or thresholds that must be followed.

Detailed vehicle inspection by insurance adjusters.


● Repair costs vs. vehicle’s pre-accident actual cash value.
● State-specific total loss thresholds.
● Legal and Financial Implications

Once a car is declared totaled, it sets off a series of legal and financial implications for the owner:

Insurance Settlement: Owners will typically receive a cash settlement from the insurance company, equivalent to the car’s actual cash value, minus any deductible.
Loan Balance: If there’s an outstanding loan on the vehicle, the settlement must first cover the loan balance, with any remaining amount paid to the owner.
New Vehicle Purchase: The settlement can be used towards purchasing a new vehicle, although it may not always cover the full cost of a new car.

Cash settlement based on actual cash value.


Settlement covers outstanding loan balances first.
Potential gap in funding for new vehicle purchase.

Rights and Options for the Car Owner


Understanding your rights and options after your car is declared totaled is crucial:

Negotiate the Settlement: You have the right to negotiate the settlement offer from the insurance company if you believe it does not accurately reflect your car’s value.
Retain the Vehicle: In some cases, you may choose to keep the totaled vehicle and receive a reduced cash settlement. This option requires understanding the legal and safety implications.
Legal Consultation: Consulting with a personal injury attorney can provide insights into your rights and may lead to a more favorable outcome.

FAQs-


Q: Can I dispute the insurance company’s decision to total my car?

A: Yes, you can dispute the decision by providing evidence that your car’s value is higher than the estimate or that repairs are feasible for less than the quoted amount.

Q: What happens if I still owe money on a totaled car?

A: The insurance payout goes first toward paying off the loan balance. If the settlement doesn’t cover the entire loan, you may need to pay the remaining balance unless you have gap insurance.

Q: Can I buy back my totaled car from the insurance company?

A: Yes, you can typically buy back your totaled car at its salvage value, but you’ll need to comply with your state’s requirements for repairing and re-registering a salvage vehicle.

The Role of an Attorney in the Totaled Car Process


Involving an attorney can significantly aid in navigating the complexities of dealing with a totaled car. An experienced personal injury attorney can:

Ensure Fair Valuation: Help dispute undervalued car appraisals.
Negotiate Settlements: Advocate for a higher settlement to cover all associated costs.
Legal Guidance: Provide advice on rights and best practices for buying back or repairing a totaled vehicle.

● Assistance in fair vehicle valuation.
● Advocacy for better settlement terms.
● Legal advice on post-totaling options.

Concluding our comprehensive guide, it’s clear that understanding what it means for a car to be totaled is essential for anyone navigating post-accident procedures. The involvement of a knowledgeable attorney can ease this process, ensuring fair treatment and guiding through legal complexities.

By being informed and proactive, car owners can navigate the aftermath of a car being totaled more effectively. GLR Injury Attorneys stand ready to assist, ensuring you receive the guidance and support needed during these challenging times.