Getting into a car accident is stressful enough, but when your vehicle is totaled and you weren’t at fault, it can feel overwhelming. Knowing the right steps to take can help you navigate the process with less frustration and ensure you get the compensation you’re entitled to. In this blog post, we’ll walk you through the steps to take when your car is totaled and you’re not at fault, helping you understand what happens next and how you can recover your losses.
What Does It Mean for Your Car to Be “Totaled”?
When your car is deemed “totaled,” it means that the damage is so severe that the cost of repairs exceeds the value of the car itself. Insurance companies use a calculation called the Actual Cash Value (ACV) to determine the value of your vehicle before the accident. If the cost to repair the car is higher than its ACV, your vehicle is considered a total loss.
The insurer will usually give you the option to accept the payout for the ACV, or in some cases, they may allow you to keep the car, but for a reduced payment. Understanding this process is important, especially when it comes to recovering the value of your car.
What Should You Do After the Accident?
- Ensure Safety and Call the Authorities
The first thing you should do after an accident is ensure your safety and the safety of others involved. Call 911 immediately to report the accident. It’s essential that a police report is filed, as it will serve as a critical piece of evidence when processing your claim. - Document the Scene
Take photos of the accident scene, the damage to both vehicles, and any visible injuries. Gather contact information from the other driver and any witnesses. The more evidence you have, the stronger your claim will be. - File a Claim with Your Insurance
After the accident, contact your insurance company to file a claim. Even though the other driver is at fault, your own insurance company may need to be involved, especially if the other driver’s insurance is slow to respond. If you have collision coverage, your insurer can help cover the cost of the repairs or replacement. - Work with Your Insurance Adjuster
Once you’ve filed a claim, an insurance adjuster will assess the damage to your car. They’ll calculate the Actual Cash Value (ACV) of your car and decide whether it is totaled. If the car is totaled, you’ll be offered a payout based on the vehicle’s pre-accident value.
What If the Other Driver’s Insurance Is Slow to Pay?
Even if the other driver is at fault, dealing with their insurance company can be a hassle. Insurance companies often try to minimize payouts to protect their profits. If you find yourself stuck waiting for their response, there are steps you can take:
- File Through Your Own Insurance
If you don’t want to wait for the at-fault driver’s insurance to pay out, you can file a claim with your own insurance company. However, this may require paying your deductible upfront. Once the other driver’s insurance settles, you can recover this deductible from them. - Hire an Attorney
If the other driver’s insurance company is stalling or offering a low payout, it may be time to seek legal help. An experienced personal injury lawyer can negotiate with the insurance company on your behalf, ensuring you get the compensation you deserve.
What If You Still Owe Money on Your Car?
If your car is totaled and you still owe money on it, the situation becomes more complicated. Typically, insurance will only pay you the Actual Cash Value (ACV) of your vehicle, which may not cover the remaining balance on your loan. This is where gap insurance can help.
Gap insurance covers the difference between what you owe on the car loan and the payout from the insurance company. Without it, you could find yourself stuck paying off a car loan for a vehicle that no longer exists.
If you don’t have gap insurance, you may need to work with your lender to find a solution, such as rolling the remaining balance into a new loan.
Negotiating a Fair Settlement
Insurance companies often start with a low settlement offer. This is because their goal is to minimize their payout, not maximize it for you. If you believe your car’s value is higher than what the insurance company is offering, you can negotiate.
- Gather Supporting Evidence
To support your claim, provide documentation that shows your car’s true value. This can include receipts for recent repairs, enhancements, or upgrades, as well as quotes from other appraisers. Online valuation tools like Kelley Blue Book or Edmunds can also help substantiate your claim. - Don’t Accept the First Offer
It’s important not to settle for the first offer the insurance company makes. You have the right to negotiate for a higher payout. If necessary, you can also consider using the appraisal clause in your policy to have an independent third party assess the value of your vehicle.
Can You Keep the Car After It’s Totaled?
In some cases, you may have the option to keep your totaled car. However, doing so will usually mean accepting a lower payout for your vehicle. If you decide to keep the car, you’ll need to obtain a salvage title from the state, which allows you to repair the vehicle and possibly sell it. Keep in mind that insuring a car with a salvage title can be difficult, and the value of the vehicle will be much lower.
Consult With A Phoenix Car Accident Lawyer
If your car is totaled in an accident that wasn’t your fault, it’s essential to understand your rights and the steps you can take to recover the value of your vehicle. Whether it’s negotiating a fair payout from the insurance company or dealing with a loan balance that exceeds the payout, having the right information can make a significant difference.
If you’re struggling with a totaled car and need help navigating the insurance process, CLS Law is here to assist you. Our experienced personal injury attorneys in Phoenix can help you recover the compensation you deserve. Don’t face this challenging situation alone. Call us today at (855) 257-9467 for a consultation.