When car accidents occur, sometimes the vehicle sustains damage. While most people can usually take a car to the shop to get it fixed and insurance will cover the costs of the damage, sometimes the vehicle cannot be repaired. Having a totaled car from an accident can be frustrating and you may not know what happens afterward. In these situations, you may be seeking legal options. Before you begin down a legal path, you may want to understand more about car totaling and what it means.
What Does Totaled Mean?
A car is considered totaled when the expenses required to repair the car is more than the car’s value. In some states, vehicles are considered totaled through certain percentage thresholds. For example, if a car has damages greater than 75% percent of its value, then it’s considered a totaled vehicle.
These costs can cause difficult financial situations. Drivers with comprehensive coverage and collision coverage can be used to replace the vehicle. Those who do not have these types of coverage may have to cover these costs themselves. No one expects to be in a car accident, especially one that completely totals their car. Unfortunately, these expenses can be high and cause a significant amount of stress.
Dealing with a totaled car can be a confusing situation for anyone. Let’s go over what happens after the car is considered a total loss. You may have options that you didn’t know you had.
What Can You Do After a Car Is Totaled?
Most people may think that after their vehicle is declared totaled, there’s not much left to do except accept a settlement check and move on. However, once a car is declared totaled, you still have some options on how to proceed.
In some cases, accepting the totaled car settlement may be more beneficial for you. If you wish, you can use that settlement to replace the vehicle. If you truly wish to keep your vehicle, you can use the settlement to repair it. There are certain steps you’ll need to take, like filing a salvage title, in order to do this. But if you believe there are better options for you, then let’s look into what you can do.
You’ll want to understand how the total can be calculated. These differ depending on who was at fault for the accident. If the accident was your fault and you have collision coverage, then the total you pay will be your policy’s deductible subtracted from your car’s actual cash value. If you weren’t at fault for the accident, then the other driver’s insurance pays the actual cash value without the deductible. There is a complicated formula used to determine your car’s ACV. Factors included in this are the make, model, miles, and how long you’ve had it.
Now with those calculations done, you’ll receive that information. It’s important for you to know that the value of your vehicle may actually be higher than what the insurer says. When determining the actual cash value (ACV), know that the insurer will be protecting their best interests. You benefit from a higher ACV, while they will benefit from a lower ACV.
If you believe your car is worth more than what the insurer claims, you can contest it. You could look at the market value of comparable cars. There’s a chance your insurer was basing their estimation on outdated information. You could also argue that your car is worth more because of custom outfitting or upgrades you’ve done to the car. These improvements could increase the value and would be more than the comparable vehicles your insurer could have used to reach their estimation.
Preferred Capital Funding Offers Pre-Settlement Funding Options
If you’re currently involved in a personal injury claim dealing with a totaled vehicle, you may be wondering how long the case is going to take. The legal process can take time, but you may be dealing with significant damages and bills now. Unfortunately, those due dates aren’t dependent on the fact that you’re seeking compensation. While you may eventually get the money you need and deserve, you don’t want to miss important due dates for your current bills and expenses.
Preferred Capital Funding understands the difficult financial situation you could be in. That’s why we offer pre-settlement funding, so those who are going through the legal process can cover those bills and focus on their case’s proceedings. Speak with your lawyer if this option can help you. Our funding experts will only work with you if your lawyer approves and will work with us. You can fill out an application today. We work to send the pre-settlement funds as quickly as possible. You could receive the funding in 24 hours.