What to Do When Your Car is Totaled
In an instant, your near-perfect, pristine vehicle can be totaled in a major accident. Someone may run through a stop light or a drunk driver may hit you head on. No matter how it happens, dealing with a totaled car can be a real challenge.
Your insurance company will total your car if the cost to repair it exceeds its book value. When this happens, you will be paid the actual cash value by the insurance company. Keep in mind that depreciation comes into effect, so even if you bought the car recently, the actual cash value will be less than what you paid for it.
Note that you cannot make the decision to have your car totaled. Only the insurance company can make that determination.
When your vehicle is totaled, it can be a real inconvenience, leaving you without a car. That’s why you need to do what you can to get your claim resolved quickly. Here are some steps to take.
File a Claim
Contact your insurance company to advise them of the accident and file a claim, just like you would with any accident.
Assess the Damage
An insurance adjuster will come out to assess your vehicle’s damage. They will conduct a visual inspection to estimate the cost of repairs.
Contact Your Lender
If you have a loan or lease, you must inform the financing company about the accident and damage. Keep in mind you will need to continue making payments. If you fail to do so, it could negatively affect your credit. Once the insurance company settles your claim, they’ll pay the lender or leasing company.
Know Your Car’s Fair Market Value
The insurer will use the actual cash value of your car immediately before the damage to decide on how much to pay you. Tools such as Kelley Blue Book can help you estimate your car’s fair market value.
Negotiate the Claim
You can negotiate the payout if you feel the insurance company is giving you a lowball offer. However, you’ll need to prove your car is worth more than what the insurer is offering. Gather window stickers and lists of any improvements you have made that show what kind of features your vehicle has.
Shop for a Vehicle
The payout you receive from the insurance company will be helpful, but it likely won’t be enough to buy a new version of your old car. However, you can use it for a down payment on a new or used vehicle, so figure out what you want to choose as your next ride.
Contact a New Jersey Personal Injury Lawyer Today
A car accident can leave your vehicle with significant damage and may even cause it to be totaled. When this happens, you need to know your next steps.
Insurance companies may try to lowball you when it comes time to cut a check. Let a Morristown car accidents attorney from The Law Offices of Michael P. Burakoff deal with the insurer so you get the compensation you deserve. Fill out the online form or call (973) 455-1567 to schedule a consultation.
Source:
kbb.com/car-advice/totaled-car/
