Getting into a car accident is a bad enough experience in and of itself; finding out that your insurance company is classifying your car as “totaled” can make matters even more complicated. But what does that even mean, and more importantly, what can you do about it?
Here’s everything you need to know about having your car totaled in Georgia.
What Does “Totaled” Mean?
“Totaled” is a common phrase used when an insurance company deems a vehicle a complete loss. It means that the cost of fixing the vehicle exceeds the value of the car itself. Insurance companies determine whether a vehicle is worth fixing using one of several different formulas.
However, your provider will have to wait until a repair company inspects your vehicle to decide whether it’s totaled or not. The value of your car before and after the crash, as well as the severity of the damage, will ultimately impact whether it is fixed or treated as a total loss.
How Do Insurance Companies Determine if a Car Is Totaled?
Typically, cars are deemed totaled when insurance companies determine that the cost of fixing them exceeds a percentage of their actual cash value (ACV) at the time of the crash.
Say, for instance, that your vehicle’s ACV was $20,000, and the insurance company was set 75% as its threshold for totaling a car. If it will cost $15,000 or more to fix yours, the insurance company will label it as totaled.
Some states, like Georgia, use the total loss formula (TLF) to determine whether a car is totaled. The insurance company will subtract the salvage value of your vehicle from its fair market value (prior to the crash). If repair costs meet or exceed the resulting figure, they can deem your car a total loss.
What Types of Crashes Will Total a Car?
Technically speaking, your vehicle can be totaled after any type of crash if the damage is severe enough. However, certain types of accidents tend to do more severe damage, such as drunk driving and left-turn accidents.
The former category causes a ton of damage due to the negligence and inattentiveness of the drunk driver. They may be speeding or could strike your vehicle at a particularly dangerous angle. On the other hand, the latter accidents are dangerous largely due to the manner of impact. In either scenario, you could find yourself with a totaled car and severe injuries.
What Happens If Your Car Is Totaled?
If your insurance company declares your vehicle a total loss, you have a few different options:
- Accept the Insurance Payout: You’ll receive a settlement based on your coverage and the vehicle’s ACV before the crash
- Buy Back the Vehicle: You can sometimes retain the car by accepting a reduced settlement amount and applying for a salvage title
- Dispute the Decision: If you believe the insurance company has undervalued your car, you can contest the decision and fight for a higher payout
Once a car is deemed a total loss, you’ll have to sign the title over to the insurance company. The payout will be used to pay off the remaining balance on the vehicle loan, and you’ll receive anything that’s left.
How To Move Forward After a Total Loss
Dealing with a totaled vehicle can be frustrating, especially if your insurer offers a lowball payout. However, you have the right to dispute insurance valuations and seek an independent appraisal. If another party’s negligence caused the crash, you may also be able to seek compensation to cover your medical bills, pain and suffering, lost wages, and property damage.
Contact the Personal Injury Law Firm of Bowen Painter Injury Lawyers in Savannah for Help Today
For more information, please contact our experienced Savannah personal injury lawyer at Bowen Painter Injury Lawyers to schedule a free initial consultation today. We have a convenient location in Savannah, GA.
We proudly serve Chatham County, Georgia, and its surrounding areas.
Bowen Painter Injury Lawyers
308 Commercial Drive, Suite 100, Savannah, GA 31406
(912) 335-1909
Open 24/7