When a vehicle is “totaled” it means the cost of repairs is higher than the value of the vehicle. For example, if your car is worth $15,000 but the estimates to repair it come back as $17,000 it would make more sense for the insurance company to just pay you the vehicle’s value. It is always up to the insurance company to determine the value of your vehicle and whether it is totaled based on the damage. 

While in many cases cars are totaled in relatively serious accidents, there are scenarios in which a relatively minor accident can result in the insurance company considering your car totaled. That generally occurs when your car is old and even a little bit of damage ends up costing more to repair than the car is worth.  

Dealing with Insurance Companies After Your Car Has Been Totaled

When you file a property damage claim from a car accident, you will be working with the insurance company, not the person who caused the accident.

Insurance companies use car accident reports, estimators, pictures of the damaged vehicle and local mechanics to determine your car's value and the cost of repairs. Sometimes those estimates come in low. In the case that your vehicle is not declared totaled, you might have to negotiate with the insurance company to get them to pay the full price of repairs.

Insurance companies are not charities, they’re for-profit businesses. They have a monetary incentive to undervalue your damage or underestimate total repair costs.

That is why in some cases having your vehicle declared totaled is better than having it repaired. There will be less debate over how much the insurance company says the repairs should cost versus how much they actually end up costing, and you won’t need to fight the insurance company to cover the difference.

Repairs are costly, time consuming and could cause problems for your vehicle later on, regardless of how well it is fixed. Car or motorcycle owners may also have personal reasons to value their vehicle that don’t factor into the insurance company’s estimates. Maybe you really like how it handles, or it’s a manual make and model you really like, and you know you won’t be able to find another. Unfortunately for these owners there’s often not much they can do.

You may be able to keep a totaled vehicle and pay the additional repair costs out of pocket, but you’ll be paid less since your insurance company won’t be able to offset their losses by auctioning off your vehicle – or what’s left of it. Any vehicle declared a total loss is also issued a salvage certificate, which could make selling it in the future more difficult even if you repair it.

Having Your Vehicle Appraised

If you don’t think your car should be labelled a total loss you should seek a second opinion and get it appraised elsewhere. Depending on whose insurance company you are dealing with – yours or the other driver’s company – this can be difficult.

In some circumstances you may have to file a complaint with the insurance company to have your car or truck reconsidered. You can hire your own appraiser that would present the value of your vehicle based on the market value and their investigation. They will consider the year and make of your vehicle, the condition of your vehicle, mileage and the car's pre-accident condition.

However, getting a second opinion does take time and might not be free. Although you might have to pay out of pocket, second opinions can be beneficial, especially if your vehicle is not paid off.

When a car is declared totaled and you still have payments, the insurance company will first pay the lenders and then give you the cash value of what is left. For example, if your vehicle is valued at $10,000 but you still owe $5,000. The insurance will pay that $5,000 to the lender first then you will only get $5,000.

Fighting with Insurance Companies for Compensation After Car Accident Injuries in Phoenix

In addition to recovering your vehicle value you may also be dealing with other expenses stemming from an accident that you did not cause.

Insurance companies have an interest in minimizing their claim payments, whether an accident only involved property damage, or you have car accident injury expenses as well. When injuries are involved it’s possible for your losses to be tens of thousands of dollars or more. Having a car accident attorney fighting for you may help you maximize your recovery.

At PHX Elite Lawyers we’ve identified local lawyers that have extensive experience representing people who have been involved in car or truck accidents. They would be happy to speak with you about your case during a free, no-obligation consultation.