If you have been involved in a car accident in which your vehicle was destroyed then you may be wondering how much you will get for your vehicle. At The Law Offices of Larry H. Parker we can help with this and other questions related to your accident. All it takes is a call to 800-333-0000 for a free legal consultation. In the meantime, keep reading for more information on what to expect.
Understanding the Difference Between a Damaged and a Totaled Vehicle
Just because you have been involved in a bad accident does not mean your vehicle was totaled – the insurance company may consider it merely damaged. The difference comes in the cost of repairs. Essentially, if it would cost more to repair the vehicle than the vehicle is worth, then it will be considered totaled. If the repairs would cost less, then the insurance company is more likely to pay for repairs.
How the Insurance Company Determines a Vehicle’s Value
If the insurance company determines that your vehicle was totaled then they will write a check to you for the value of the vehicle – but how do they determine the value? They will look at the market value by using comparable vehicles. This is one that has the same quality level and is the same type. Generally they will look at cars with the same model year, similar body types, similar options, and similar mileage to your vehicle.
Note that the value is taken from the moment before it was totaled. It is not attached to the price you paid for it or even how much you still owe on it. Essentially, the insurance company is giving you the amount they believe it would cost to buy a similar vehicle.
What to Do if You Still Owe Money on Your Vehicle
There is a type of auto insurance known as gap insurance. Essentially, if your vehicle is totaled and you have this coverage, it pays the difference between what you owe and what the insurance company pays you. However, if you do not have this, then you will either have to keep making payments on your totaled vehicle or pay the difference yourself.
Can You Negotiate Replacement Value?
You cannot necessarily negotiate replacement value but you can be sure the insurance company knows about any upgrades, repairs, or customizations that may add value to your car. If it was upgraded when you bought, for example if it had leather seats, then you would be sure to let them know this as it increases the value of your vehicle.
If you were injured in the car accident, then your personal injury attorney will handle negotiations for you. We will assess not just your injury damages but your property damages as well. To learn more, contact The Law Offices of Larry H. Parker at 800-333-0000 for a free legal consultation.