What Determines if My Car Is Totaled?

When you’ve been involved in a car accident in Chicago, one of the first questions that may come to mind is whether your vehicle is totaled.

In the aftermath of a crash, you can find yourself dealing with legal issues, insurance claims, and healing from any injuries from your accident. This is when knowing what determines if your car has been totaled, and deciding if you need the help of an experienced car accident lawyer to protect your rights and interests, are vitally important.

Definition of a Totaled Car

Before delving into the specifics, it’s essential to clarify what constitutes a “totaled” car.

Generally, a vehicle is considered totaled when the cost to repair it exceeds a certain percentage of its actual cash value (ACV). This threshold can vary by insurance company and jurisdiction. (More on this below.)

Here’s a look at some of the factors that play a role in determining if your car is considered totaled.

Assessing the Damage

Your first step in determining if your car is totaled requires an assessment of the extent of the damage.

For this, you’ll need to contact your insurance company and report the accident promptly. Once notified, they’ll have an adjuster conduct a thorough inspection to evaluate both the visible and less obvious damage caused by the accident.

Insurance adjusters consider factors such as:

• Structural Damage: This includes any damage to the frame or chassis of the vehicle, especially damage that significantly impacts safety and structural integrity.
• Mechanical Damage: Any issues with the engine, transmission, or other major components that may affect drivability.
• Cosmetic Damage: Though superficial, extensive cosmetic damage can also contribute to the decision, as this cost still factors into the overall repair costs.

Cost of Repairs vs. Actual Cash Value (ACV)

Once this assessment is done, the insurance adjuster will compare the estimated cost of repairs to your vehicle with the vehicle’s ACV (Actual Cash Value). The ACV is what the market value of the car was before the accident, factoring in things like depreciation, mileage, and general condition.

If the cost of these repairs is more than a certain percentage of the ACV (typically 50% – 75%), your car may be listed as totaled.

Salvage Value

In some cases, your insurance company may take into account the salvage value of the vehicle.

Salvage value is how much could be gotten by selling the damaged vehicle, as is, to a salvage yard or for parts. This amount is then deducted from the ACV, leaving the total loss threshold. If the cost of repairs to your car is more than this adjusted threshold, it will probably be considered totaled.

State-Specific Guidelines

It’s important to remember that every state, including Illinois, has its own guidelines and regulations when it comes to totaled vehicles.

These regulations can impact the threshold percentages used by insurance companies to determine a total loss. Additionally, some states require vehicles to be declared salvaged or rebuilt after being totaled, which can affect their future insurability and resale value.

In some cases, Illinois law will even allow you to keep your totaled vehicle.

Insurance Policy Details

Of course, the specifics of your insurance policy also play a key role in how your totaled car is handled.

Different insurance companies and even policies within the same company have varying terms and conditions when it comes to total loss settlements, deductibles, and coverage limits. Reviewing your policy thoroughly and understanding its provisions can help you navigate the claims process more effectively.

Once Your Car is Deemed Totaled

Okay, so your car is declared totaled. Now, you have the right to negotiate the settlement with your insurance company. This includes discussing the ACV assessment, repair estimates, and any other relevant factors that may affect the value of your vehicle.

Providing documentation such as maintenance records and pre-accident photographs can support your negotiations.

If you feel like your settlement is too low, or that your insurance company is dragging its feet, this can be a good time to involve a qualified car accident lawyer to fight for your rights and fair compensation.

Your Options After Total Loss Declaration

Once your car is declared totaled, you have several options depending on your insurance policy and personal preferences:

• Accepting the Settlement: You can accept the insurance company’s settlement offer, which typically involves receiving a payment equivalent to the ACV of the vehicle minus any deductible.
• Retaining the Salvage: Some policies allow you to keep the totaled vehicle by deducting its salvage value from the settlement amount. This can be beneficial if you intend to repair the vehicle yourself or sell it for parts.
• Appealing the Decision: If you believe the insurance company’s assessment is inaccurate or unfair, you have the right to appeal the decision through the company’s internal appeals process or by seeking legal advice.

Determining whether your car is totaled involves a detailed, professional assessment of the damage, repair costs, and the vehicle’s actual value.

Remember to communicate openly with your insurance adjuster and consider seeking professional advice if needed. The experienced attorneys at Thomas Law Offices can help ensure a fair and satisfactory outcome.

If your car has been totaled in an accident (or you’re wondering if it should be), contact us today for a free consultation and get the answers you need to protect your rights!