If you’re in a car accident that’s severe enough to total your car, you may have a lot of questions about how you’ll possibly afford to pay for the damages. An auto accident lawyer can file a car crash claim for you but first let’s investigate what a totaled car means for your wallet.
What does ‘totaled’ really mean?
A car that sustained extensive body damage isn’t necessarily the same as a totaled car. For insurance purposes, a totaled vehicle is considered a total loss. In other words, the cost to repair the vehicle is more than the vehicle is worth. A reputable mechanic must declare your car to be total loss in order for your car insurance company to accept it as such.
Your Car’s Actual Cash Value
Assuming that you have insurance coverage in a car accident (if the accident was your fault), then your car insurance company is responsible for paying the actual cash value up to your policy limits. The car’s actual cash value (ACV) refers to your car’s worth at the time of the accident, not when you first bought it. If this sounds like your situation then you will want to read 5 Tips for Dealing with a Car Insurance Adjuster.
The fact that you’re only owed the actual cash value for your vehicle can be problematic. In some cases, you may still owe more on your car loan that your vehicle is worth. Often, being able to afford a new car with only the ACV amount isn’t feasible.
Do I have any other options for compensation?
If you have traditional car insurance, or if you have sustained serious injuries, then you can file a personal injury claim against the at-fault driver. A personal injury claim can help you to recover total costs of damages, both economic and noneconomic.
Another solution to paying for the costs of a totaled vehicle is gap coverage. If you have gap coverage, then this coverage type will pay the difference between the balance of your vehicle loan and your car’s ACV.
More Tips When Seeking Compensation for a Totaled Vehicle
Filing a car insurance claim can be frustrating. For help in negotiating your settlement amount – or filing a personal injury claim – make sure you call Cordisco & Saile LLC offices. We’re ready to talk with you about your car accident claim now at 215-642-2335 or via our contact page.