What insurance will pay for a totaled car depends on the vehicle’s actual cash value (ACV). This represents a car’s market value before the loss. Typically, an insurance company will use a car’s age, make, model, mileage, condition, and options to determine its ACV after an auto accident.
Trust a Cleveland car accident lawyer to help you figure out what your insurance company will pay for your totaled car following your auto collision. Insurance coverage and claim processes can vary based on the insurance policy and company. Regardless, your lawyer will fight to get you adequate compensation from your insurance company for your totaled vehicle.
Factors That Can Determine What Insurance Will Pay for a Totaled Car
Your car’s actual cash value is often the key factor that your insurer will use to determine what to pay for your total loss. The ACV is the fair market value of your car prior to your auto collision and accounts for vehicle depreciation.
Other factors that insurance will consider when calculating the payout for your totaled vehicle can include:
Deductible
You will need to pay your deductible before the insurance company provides any reimbursement for your totaled car. For example, your deductible is $500, and your ACV settlement is $10,000. In this scenario, you will receive $9,500 after subtracting your $500 deductible.
Car Insurance Coverage
If you have gap insurance, collision coverage, or other optional coverage, any of these may help cover the difference between your ACV settlement and any outstanding loan or lease balance that you have on your vehicle.
Salvage Value
In many cases, an insurance company will deduct the salvage value of a totaled vehicle from an ACV settlement. Salvage value refers to the value of the damaged vehicle’s parts or its potential for repair and resale. Your insurance company may offer you the option to buy back your salvage vehicle if you wish to keep it.
Talk with a car accident attorney familiar with insurance settlement negotiation tactics. Your lawyer will have a wealth of relevant case experience. They will use what they know about the common causes of car accidents and the costs associated with auto crashes to get you an insurance settlement that matches your expectations.
For a free legal consultation, call 216-774-0000
How to Dispute What Your Insurer Will Pay for Your Totaled Car
You are subject to Ohio’s minimum coverage requirements for auto insurance if you live in the state and drive a car. Meanwhile, if you have auto insurance coverage in Ohio, you have the right to dispute your insurer if you disagree with the company’s valuation of your total loss. Below are the steps to contest what your insurance company offers to pay for your totaled car.
1. Gather Evidence
Review your insurance company’s valuation report with an auto accident lawyer. From here, you and your attorney can find out what information your insurer used to determine your car’s valuation. Next, you can collect your car maintenance records, online listings of comparable vehicles in your area, and other evidence to support your request for a higher valuation.
2. Negotiate with an Insurance Adjuster
Share your evidence with the insurance adjuster assigned to your claim. Ideally, the adjuster examines your evidence and adjusts your car’s valuation accordingly. However, if this doesn’t happen, you may have to escalate your claim to the adjuster’s manager.
3. Get an Independent Appraisal
If your insurance policy has an appraisal clause, exercise your right to seek a neutral third-party valuation of your car. By hiring a certified appraiser, you can receive an unbiased valuation report, strengthening your case for sufficient compensation for your total loss.
Having a lawyer on your side makes a difference if you want to dispute the amount that your insurance company says it will pay for your totaled vehicle. Choose an attorney who has helped clients in cases similar to yours achieve outstanding case results. Your lawyer will handle your legal matters with care and help you avoid mistakes throughout the insurance claims process.
What Happens to a Totaled Car?
What will happen to your totaled car is dependent on local regulations, the specific circumstances of your situation, and other factors. Some possible scenarios for your totaled vehicle include:
- Salvage title: Your insurance company could take ownership of your totaled car and issue a salvage title for it. A salvage title indicates that the car has been significantly damaged or deemed a total loss and allows the vehicle to be sold to a salvage buyer who wants to repair it or use it for parts.
- Auction or sale: Insurance companies often sell totaled cars at salvage auctions or to salvage yards. Buyers at these auctions may include individuals, auto repair shops, or scrapyards, and the highest bidder or purchaser will take possession of the vehicle.
- Buyback option: Your insurance company may let you buy back your totaled car at its salvage value. If you choose this option, you can keep your car, but the salvage title will remain, and the vehicle may require significant repairs to be roadworthy again.
- Parting out: If your car has valuable parts that are in good condition, it may be dismantled and sold piecemeal. Salvage yards or individual buyers could purchase these parts for use in other vehicles.
- Scrap or recycling: If your car is extensively damaged and not suitable for repairs or parting out, it may be sold to a scrapyard for recycling. The vehicle can be crushed and used for metal or other materials.
As you weigh the pros and cons of these and other options for your totaled car, look at your insurance policy and contact your insurer for accurate information regarding your coverage, deductibles, and settlement process. Your insurance company will be able to provide you with detailed information based on your policy terms and conditions.
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The Bottom Line on What Your Insurance Company Will Pay You for Your Totaled Car
If an insurance claims adjuster makes you a settlement offer on your totaled vehicle, resist the urge to make a quick decision on it. Because if you approve the first settlement offer you get, you could wind up accepting less than the total loss value of your vehicle.
Instead, let car accident lawyers help you with total loss thresholds and other aspects of your claim. HMW Law—Ohio Trial Attorneys has over 60 years of combined experience. We know the challenges that you will face with your auto collision claim.
Our auto accident lawyers can go over your auto policy with you and help you get money from your insurer for the total replacement cost. To learn more, schedule a free consultation with us.
Call or text 216-774-0000 or complete a Free Case Evaluation form