Car Accident Damages: From Totaled Cars to Legal Action

Car accidents can be traumatic and life-altering, leaving victims with physical injuries, emotional scars, and financial burdens. The pain can be all the more tragic when the accident was preventable and due to someone else’s negligence.

Fortunately, when you work with Morgan & Morgan, you can fight for justice and compensation for your damages—including damages related to your vehicle, medical expenses, and even lost wages due to missed work while recovering from injuries. 

Getting the compensation you need and deserve to move forward with your life isn’t always as easy as a call to the insurance company. Claims can get denied or lowballed, and that’s when you need an experienced advocate in your corner.

If you need help with car accident damages, contact Morgan & Morgan for a free case evaluation to learn more.

What Are Car Accident Damages?

Car accident damages refer to the various types of losses—both tangible and intangible—that victims incur due to a collision. These damages are typically categorized into two main types:

Economic Damages

• Medical expenses (current and future)
• Property damage, including vehicle repairs or replacement
• Lost wages and diminished earning capacity
• Other out-of-pocket expenses (transportation to medical appointments)

Non-Economic Damages

• Pain and suffering
• Emotional distress
• Loss of enjoyment of life
• Loss of consortium (impact on relationships with family members)

In some cases, punitive damages may also be awarded. These are designed to punish particularly reckless or malicious behavior, such as drunk driving, and deter others from similar actions.

What Determines if a Car Is Totaled?

One of the most significant financial aspects of a car accident is determining whether your vehicle is repairable or considered a total loss. A car is typically classified as "totaled" when the cost of repairs exceeds a certain percentage of its market value. Here’s how that determination is made:

Fair Market Value (FMV)

The FMV is the estimated amount your car would sell for in its pre-accident condition. Factors like age, mileage, and condition affect this value.

Repair Costs

The repair estimate is calculated based on the damage sustained in the accident. This includes labor, parts, and any specialized services needed.

Total Loss Threshold (TLT)

Most states have a TLT percentage, typically ranging from 50% to 75%. If repair costs exceed this threshold, the car is deemed a total loss.

Salvage Value

The salvage value refers to the worth of your car’s remaining parts and materials. Insurance companies consider this value when determining whether to declare the car totaled.

Example: Determining if a Car is Totaled

For instance, if your car’s FMV is $10,000, and your state’s TLT is 70%, the car will be totaled if repair costs exceed $7,000.

Steps to Take if Your Car Is Totaled

If your car is declared a total loss, notify your insurer promptly. They will conduct an assessment and provide a settlement offer. Review the settlement offer carefully. Verify that the offer reflects your car’s FMV. You may need to negotiate if you believe the valuation is inaccurate.

Next, consider your options thoroughly. You can accept the settlement and surrender the car to the insurer or keep the car as a salvage vehicle. Note that keeping the car may affect future insurance coverage.

If you have an outstanding loan on the car, the insurance payout will go directly to the lender. You may be responsible for any remaining balance.

If you are uncertain about the fairness of an offer, don’t rush to sign anything. Contact Morgan & Morgan to learn more about your options.

How to Take Legal Action After a Car Accident

In some cases, victims of car accidents may need to take legal action to recover full compensation for their damages. This typically happens when:

• The at-fault driver’s insurance is insufficient or denies the claim.
• The accident involves serious injuries or fatalities.
• There are disputes about liability.

Following a car accident that requires legal action, you should first and foremost prioritize your health and safety and seek immediate medical attention. Medical records also serve as crucial evidence for your claim.

If you are able while still at the scene of the accident, gather evidence such as photos of the scene, witness statements, police reports, and repair estimates.

Next, contact Morgan & Morgan. One of our car accident lawyers can evaluate your case, negotiate with insurance companies, and represent you in court if necessary.

From there, you can file a claim or lawsuit. You can start by filing a claim with the at-fault driver’s insurance. If negotiations fail, your attorney may recommend filing a lawsuit.

Each state has a time limit for filing personal injury or property damage claims, known as the statute of limitations, so time is of the essence. Your lawyer can assist you to ensure that you file a claim correctly and on time.

What Can I Be Compensated for After a Car Accident?

When taking legal action, you may be eligible for compensation for any of the following: 

• Medical Expenses: Covers hospital bills, surgeries, medications, rehabilitation, and ongoing care.
• Property Damage: Includes vehicle repairs or replacement, as well as damage to personal belongings inside the car.
• Lost Income: Compensation for wages lost during recovery and reduced earning capacity if injuries are long-term.
• Pain and Suffering: Monetary compensation for physical pain and emotional distress.
• Punitive Damages: Additional compensation designed to punish egregious behavior, such as reckless driving.

How to Maximize Your Compensation

To ensure you receive the full compensation you deserve, consider the following tips:

• Keep Detailed Records:
  • Maintain all documents related to the accident, including medical bills, repair estimates, and correspondence with insurers.
• Avoid Quick Settlements:
  • Insurance companies may offer low initial settlements. Consult with your attorney before accepting any offers.
• Follow Medical Advice:
  • Adhering to your treatment plan demonstrates the severity of your injuries and prevents insurers from downplaying your claim.
• Stay Off Social Media:
  • Posts about your accident or recovery can be used against you in legal proceedings.
• Work with Experts:
  • Your Morgan & Morgan attorney may bring in experts, such as accident reconstructionists or medical professionals, to strengthen your case.

Common Challenges in Car Accident Cases

While pursuing compensation, you may encounter challenges such as:

• Disputed Liability: The at-fault driver may deny responsibility, necessitating further investigation and evidence.
• Insurance Company Tactics: Insurers may delay payments, dispute claims, or pressure you into accepting low settlements.
• Uninsured or Underinsured Drivers: If the at-fault driver lacks adequate coverage, you may need to rely on your uninsured/underinsured motorist policy.
• Complex Legal Processes: Navigating the legal system can be overwhelming without professional guidance.

Morgan & Morgan Can Help

Morgan & Morgan is committed to helping car accident victims recover the compensation they deserve. With decades of experience and a proven track record, our attorneys are equipped to handle even the most complex cases.

We work on a contingency fee basis, so you pay nothing upfront. That’s right—the Fee Is Free®, and you only pay if we win. And with offices in every state across the country, we’re ready to assist clients wherever they need us.

From gathering evidence to negotiating with insurers, we handle every aspect of your case.

Car accidents can leave victims facing significant financial and emotional challenges. If you or a loved one has been involved in a car accident, contact Morgan & Morgan today for a free case evaluation. 

Frequently Asked Questions

Can I keep my car if it is totaled?

Typically, the insurance company will take possession of your vehicle if it is totaled. This allows it to sell your car to a salvage yard for scrap and get some additional value from it. In some states, you can request to keep the car but the insurance company will pay you less than it would have if it received the vehicle.

Will I get paid directly for my totaled vehicle?

That depends on whether you own the car debt-free or not. If you own it and owe nothing for it, you will receive payment for the value. However, if it has been financed and you haven’t fully paid it off, the finance company will be paid first and you’ll receive the remainder.

Is there any way to get the insurance company to pay for a new car?

Typically, your insurance company will not pay for a new car. However, if you have a policy that covers the replacement value of the vehicle, you may be able to receive enough from the insurance company to purchase a new car. Usually, you can get this type of policy only when your vehicle is brand-new, and the policy lasts approximately a year.

Does it matter if the accident was my fault?

Most insurance policies will decrease the practical value of your vehicle if the accident is your fault. This means that your car could be considered totaled even though the repair costs are less than the actual value of the vehicle.

If you think that the insurance company has incorrectly determined that you were at fault in an accident, consult with one of our attorneys. We can investigate your case and prove that the other party was at fault.