Car accidents with significant force or just the right angle can lead to a devastating outcome. If your car suffers substantial damage, you can expect the insurance company to total it. That means the insurance company does not believe it is financially feasible to repair the car and instead wants to pay to replace it.
It is important to know what to do if your car is totaled to be sure you receive fair compensation. Several details under Florida law can prove to be critical, and a St. Petersburg car accident attorney can be of assistance.
Understanding the Term “Totaled”
Insurance companies will total a car if they believe the vehicle is a total loss. If the cost to repair the vehicle is equal to or more than 80% of the car’s actual cash value at the time of the accident, it will be totaled. Simply, it is not worth it to make repairs.
Actual cash value is the tricky part of this equation. Your vehicle’s actual cash value is the current market value of the vehicle. It takes into consideration the condition of the car just before the accident, not after. Insurance companies come to this number using various tools. They take into consideration factors like your location, mileage on the car, the overall condition, age, and sales of cars like yours in the area recently.
What Are Your Options After Your Car Is Totaled?
If you have a vehicle with a loan on it, you may be unsure what to expect. Several situations can play out in all cases.
You receive a payment: The insurance company may provide you with a settlement for the accident. It will include the actual case value of the car, based on what they calculated.
Loans on the vehicle: If you have a loan on your car at the time of the accident, the settlement will go towards paying off that loan before anything goes to you. If you have a loan on your car of $10,000 and the actual cash value is $12,000, $10,000 will go to the lender, and you receive the rest.
Gap insurance: What happens if your vehicle is worth $10,000 and you owe $15,000 on it? In that situation, if you have gap insurance, it may help cover the difference between what you owe and the vehicle’s value.
If you do not have gap insurance, you still remain liable to the lender for the difference between your car loan and car value, even if you did not cause this accident and have been up to date on your loan payments over time.
How an Attorney Can Help You
In these situations, a personal injury lawyer in St. Petersburg, Florida, can help you in several ways. The first is to review the settlement and ensure it is accurate. If it is not, your attorney may go to work building a bigger claim for you. Negotiating with the insurance company is more difficult to do on your own.
Your attorney can also help you consider your options, including accepting the payout, pursuing a salvage title, or taking other steps if available. Because this carries long-term financial implications, it is wise to work with a car accident lawyer to minimize the risk of not getting fair compensation. Contact Salter, Healy, Rivera & Heptner for a free consultation.
