Maximizing Your Totaled Car Insurance Claim: Don’t Settle for Less

Cars aren’t built like they were a few decades ago. Plastic, electronics, and other technology have replaced a majority of the components that we were once able to repair ourselves, causing even minor incidents of damage to require professional repair. A simple pothole can even cause you to lose your bumper nowadays, and more serious situations almost always result in thousands of dollars in repair expenses—all at a moment’s notice.

A vehicle can only sustain a certain level of damage before it’s considered to be “totaled,” which means the damage to the car far outweighs the price of purchasing the same vehicle at its current market value. The amount of damage to reach this classification will depend on various factors, such as the age of the vehicle, the mileage, and your insurance policy, but most providers will apply this designation if the damage exceeds 80% of the vehicle’s cost. If your vehicle is totaled, most insurance policies will pay for a replacement and allow you to get back on the road again.

Unless you have experience with vehicle repairs, you likely won’t know the total cost of the damage immediately after the incident. You’ll have to rely on what the insurance company is telling you, and in some cases, they don’t have your best interest in mind. They could designate your vehicle as totaled, then neglect to provide you with your fair and full compensation, or they could drag their feet during the process and leave you without the funds you need to return to a normal life. Either case will force you to pay for the damage out-of-pocket, but why should you be forced to shoulder the financial burden if your policy protects you?

The simple answer is you shouldn’t. Determining car total loss value in 2022 is challenging, but it’s not impossible, and there’s really no excuse for an organization with as many resources as an insurance company to make a mistake that costs someone thousands of dollars. It’s an unfortunate reality for too many individuals, but with the help of an attorney, you can sidestep any hurdle you encounter along your path and reach the finish line of your situation successfully. No one should receive less than their car's total loss value in any situation—Morgan and Morgan is here to ensure you’re compensated fairly and treated with respect.

With $20 billion+ recovered since our inception, offices from coast to coast, and the resources of a corporate giant, America’s largest personal injury firm is uniquely capable of helping you recover your car's total loss value, regardless of the complexity of your case.

Complete our free, no-obligation case evaluation to get started.

What Happens When Your Car Is Totaled?

Anyone who finds themselves in a car accident where their vehicle is totaled will have to file a claim under the appropriate coverage to recover the compensation necessary to repair their vehicle. If you’re at fault for the damage, you’ll file a claim under your collision coverage, whereas you’d file your claim with the at-fault party’s provider if you weren’t responsible for the accident. Weather-related events and vandalism situations are filed under comprehensive coverage, with the compensation for each of these claims correlating to the coverage you opted into when you signed your policy.

Everyone’s insurance policy is different. If you’re confused about your specific coverage, it’s best to familiarize yourself with that information before you need it.

How to Determine the Damage of a Totaled Vehicle?

If your car is totaled in an accident, your insurance company will declare it a total loss and pay you the car's actual cash value (ACV). There are two different methods used to calculate the ACV of a totaled car: the replacement cost method and the repairs method.

• Replacement Cost Method

This approach is fairly straightforward—the ACV is determined by looking up the current market value of a similar vehicle. This value can be found in Kelley Blue Book or another similar resource.

• Repairs Method

The repairs method is a bit more complex. First, you’ll need to determine the estimated cost of repairs, including both parts and labor. Once you have that number, you subtract it from the current market value of the car, with the result serving as the car's ACV.

For example, let's say your car is totaled and would need $5,000 in repairs. If the current market value of a similar vehicle is $10,000, then your car's ACV would be $5,000.

The actual cash value of a totaled car is determined by either the replacement cost method or the repairs method. In most cases, the former will yield a higher number, so that's usually what insurance companies go with. However, it's important to know how both methods work so that you can be sure you're getting a fair payout from your insurer. If you find that you aren’t, you should team up with an experienced attorney to ensure you can right the wrong and get back on the road again swiftly.

What Factors Determine Your Car Total Loss Value?

Insurance companies use a number of different factors to determine the total loss value of a car, with each one playing an important role in the total compensation you’ll receive through your claim. They’ll consider the following:

• Make
• Model
• Year
• General condition
• Mileage

The make and model of the vehicle are obviously important, but so are its age, mileage, and overall condition. In addition, the company will also consider the cost of repairs and the current market value of similar vehicles. All of these factors will be taken into account when making a total loss determination, but it’s not easy to come to a final number on your own. If you feel that your insurance company is offering less than you deserve, Morgan and Morgan’s team can help you recover every penny you’re entitled to.

What Should I Do If I’m Offered Less Than My Car Total Loss Value?

Most people assume their insurance company will correctly value their car damage claim and honor the contract that they’ve paid for all that time. However, this isn’t everyone’s experience. Some people find themselves in lengthy disputes with their insurance company, where their claim is diminished or devalued due to a miscalculation or other negligent action. Others have had to handle drawn-out legal processes with the party responsible for the damage, but in either case, you’re left without your rightful compensation when you need it most, forcing you to pay for the costs out-of-pocket.

A sudden expense of this caliber can change your life in an instant, and that’s not to mention the life adjustments you’ll have to make to adapt to no longer having your vehicle in more serious cases. The total cost of your situation extends far beyond the price of your repairs for this very reason, as you deserve compensation for the other consequences you’ve suffered due to the incident. If you find that your insurance provider is acting negligently and they’re refusing to offer you what you deserve, you may be able to file a lawsuit against them and seek to recover:

• Former compensation owed
• Punitive damages
• Lost wages
• Other monetary costs resulting from the situation they’ve caused

Don’t let the insurance company get away with making your life more difficult. If your situation qualifies for a lawsuit, you shouldn’t gamble with the outcome—team up with Morgan and Morgan and give yourself the best possible chance of success starting on day one.

Can I Afford an Attorney to Handle a Totaled Car?

The thought of another expense after your already costly situation could be enough to deter you from seeking legal representation. It’s an understandable reaction, but you should consider the bigger picture before you forgo an attorney entirely. Think about the outcome of your case: Can you afford to lose out on the total compensation you’re owed? If not, then you shouldn’t take the chance, especially when there are options that allow you to afford comprehensive representation with no up-front costs, like Morgan and Morgan.

That’s right; you can afford the representation that’s secured more than $20 billion with no out-of-pocket costs. We take our fee from the favorable settlement or jury award at the end of your case to ensure that anyone who’s wronged by a negligent insurance company or other at-fault parties can afford our assistance during a stressful period of their life. Not only does our contingency keep the costs low for you, but it also centralizes everyone involved around one singular goal—achieving the best possible results in your case.

Morgan and Morgan Can Help Determine Car Total Loss Value

In the most difficult moments of your life, Morgan and Morgan has your back. A car accident is a jarring, traumatic experience that’s just as emotionally damaging as it is physically. You paid into your insurance policy to protect you from a situation like this, and to have them disrespect your agreement at such a critical moment is an unacceptable response. You need someone in your corner to help you advocate for the fullest extent of the compensation you’re entitled to, and what better ally in your corner than America’s largest personal injury firm?

We have a proven track record of results advocating for the rights of those who have found themselves in your position. If you believe you are receiving less than your car’s total loss value, our team is only a phone call away. Complete our free, no-risk case evaluation to take the first step.