Sometimes an insurer doesn’t think that a vehicle is worth repairing after a major accident. In situations like these, the car is likely to be considered a total loss. If you think that this might happen to your vehicle after an accident, you should prepare for the possibility. A Monmouth County car accident lawyer can help you.
What Should I Do If I Think My Car is a Total Loss?
If you look at your vehicle after a crash and assume that it could be declared a total loss, you should:
- Get the car to an approved shop
- Gather any paperwork relating to your vehicle
- Research the value of your vehicle
- Review any documents about your car loan
What Happens If The Car is a Total Loss?
An insurer will get repair estimates and compare those numbers to the actual cash value, or ACV, of the damaged vehicle. According to New Jersey state law, the insurance company can then declare a car a total loss if the cost of repairs is more than 80% of the car’s ACV. Let’s say your car is worth $5,000 and your repairs would cost $4,500. That’s a total loss.
Who pays you for your vehicle can vary. If someone else caused your accident, that driver’s liability coverage should kick in. If you were to blame for the accident or the damage was caused by something else, like a fire or extreme weather, then your own collision or comprehensive coverage can kick in. Unfortunately, these two types of coverage are optional, and some drivers discover that they do not have them when they need them.
Do I Need a Lawyer?
A lawyer can be helpful if your claim gets complicated. They can help you dispute:
- Who is at fault
- The value of your vehicle
- The expense of repairs
If you do need to file a lawsuit, your lawyer can help you negotiate for a fair settlement.
What Happens If I Owe Money on My Car?
This can be an awkward situation. If you financed your vehicle and you were still paying it off when it was declared a total loss, it’s possible that the ACV of your car will be lower than what you owe. An insurer could declare that your car is worth $5,000, and if you owe $7,000 on your loan you’ll have to come up with that $2,000 on your own.
Gap insurance can cover this though. If you have this on a policy for a financed vehicle, your insurer will make up for that $2,000 shortfall so you do not have to stress about it.
Contact Our Law Firm Today
When you need help with an insurance claim or lawsuit, talk to a lawyer who has experience assisting with many cases just like yours. Contact Falcon Law Firm and schedule your consultation today.
