A car is considered “totaled” when an insurance company declares it a total loss, meaning the estimated cost to repair the vehicle exceeds its current value. When an insurer totals a car, they will pay you the actual cash value (ACV) of the vehicle before the crash instead of fixing it.
When seeking insurance coverage after a car accident, it’s important to understand how insurance companies handle totaled vehicles. The experienced New York car accident lawyers with Richmond Vona have successfully recovered over $200 million in compensation for clients like you. If you need help navigating insurance after a crash, contact us online or call 716-500-5678 today for a free consultation.
ON THIS PAGE
- Why Do Insurance Companies Declare a Car Totaled?
- How Do Insurance Companies Determine if a Car Should Be Totaled?
- What Does the Insurance Company Pay?
- How Does Totaling Impact a Car Accident Case?
- Can I Keep My Totaled Car After an Accident?
- What if My Totaled Car Is Still Drivable?
- Contact Richmond Vona to Protect Your Rights After a Total Loss Accident
Why Do Insurance Companies Declare a Car Totaled?
In New York, insurers consider a car totaled when the repair cost exceeds a certain percentage of the car’s market value at the time of the accident. Being able to designate a car as a lost cause can save money for both the insurer and the policyholder, avoiding costly fixes when a new vehicle is the best option.
A car’s age, make, model, mileage, relative condition, history of repairs, and other factors determine its ACV before the crash.
How Do Insurance Companies Determine if a Car Should Be Totaled?
Insurers follow a series of steps to determine if a car should be totaled in New York, including:
Insurance Inspection and Estimate
A claims adjuster will inspect the vehicle and create an estimate for the cost of repairs.
Calculating the Actual Cash Value
The adjuster will then calculate the market value of your car at the time of the crash and compare it to the estimated repair costs.
Applying the 75% Rule
If the estimated repair cost meets or exceeds 75% of the vehicle’s pre-loss ACV, New York treats it as a total loss for salvage-branding purposes. Insurers may also declare a total loss below that level when repairs aren’t economically reasonable.
What Does the Insurance Company Pay?
After totaling a vehicle, the insurance company will pay the policyholder the actual cash value of the car instead of covering repair costs.
ACV is determined by analyzing several factors, including the car’s age, make, model, mileage, general condition, upgrades, and market value of similar vehicles. The insurer will also likely subtract a deductible from your payment.
How Does Totaling Impact a Car Accident Case?
A totaled car can have implications on your ability to recover compensation and the outcome of a car accident lawsuit, including:
Insurance Claim Value
Totaling determines the relative value of what you’ll be able to recover for damage to your vehicle after an accident. New York’s “no-fault” auto laws do not apply to vehicle damage, so if your losses from a totaled vehicle exceed your collision coverage and another driver was liable for the crash, you can pursue a claim with the at-fault driver’s insurer, and if needed, file a lawsuit against the at-fault driver.
Loan or Lease Balance
You must use your insurance award to pay off any money you still owe for the car. However, there are some types of insurance that can help cover the remaining balance.
Personal Injury Claims
A totaled car can serve as significant evidence for a personal injury case, as the details of the damage can corroborate the other driver’s liability for the crash and minimize your own.
Negotiations with Insurance
You don’t have to accept the insurance company’s first offer. If you believe your car is being undervalued, an experienced attorney can help you negotiate a settlement that properly compensates you for your total loss.
Legal Implications
While a totaled car often serves as evidence for establishing your injuries after a crash, it can complicate your personal injury claim if liability is disputed. Our trusted attorneys can help you understand your legal situation and explore your options.
Can I Keep My Totaled Car After an Accident?
In New York, owners are typically allowed to keep a totaled car. However, the insurance company may take the vehicle’s salvage value out of whatever payment you receive. The car will also likely receive a salvage title, which may require a state inspection before it can be re-registered and insured—factors that reduce future resale and coverage options.
What if My Totaled Car Is Still Drivable?
An insurance company can consider a car totaled even if it still runs. In the eyes of insurers, drivability doesn’t change whether a vehicle is totaled or not.
Continuing to drive a car that has been branded totaled may be unsafe. Insurance companies will also often limit coverage for totaled cars, increasing your exposure to further costs. If you’re considering keeping a totaled car in use, consult a knowledgeable New York car accident attorney first to ensure you understand the risks.
Contact Richmond Vona to Protect Your Rights After a Total Loss Accident
Richmond Vona has more than two decades of combined experience advocating for clients like you. Our trusted legal team is ready to fight to get you the results you deserve. If you’ve been injured in a car accident that left your vehicle a total loss, contact us online or call 716-500-5678 today for a free consultation.
