Questions and Answers About Total Loss Cases

Many kinds of incidents can cause profound damage to your vehicle, from multiple-driver collisions to natural disasters such as floods and fires. After the dust has settled and you have filed an insurance claim, the assessment from your insurer may conclude that you have a totaled car and compensate you accordingly.



Unfortunately, the owners of totaled cars can and do run into occasional conflicts with their insurers, including unreasonable delays, unfair compensation amounts, or inaccurate valuations. If you struggle with any of these issues, the following questions and answers should help you obtain a clearer picture of your legal options.

When Do Florida Insurers Declare a Total Loss?

When the cost of repairing the damaged vehicle exceeds a certain percentage of its actual cash value, insurers declare that vehicle a total loss. Each U.S. state applies its own formula for determining this threshold. In Florida, the estimated losses must equal at least 80 percent of the value of the car (as of the date of the incident).

For example, if your car had a $20,000 value on the day you got into an accident, your insurer will look at the pre-accident value of the car, the estimated repair costs, and the salvage value. If the estimated repairs plus the salvage value equal or exceed $16,000, the insurer will consider your car a total loss.

How Do Insurers Determine Actual Cash Value?

Insurers take depreciation into account when calculating the actual cash value of your car at the time it sustained damage. Some insurers will rely on reputable, trustworthy reference sources such as Kelley Blue Book, NADA, or Edmunds. Unfortunately, others may use other sources that yield lower numbers.

Fortunately, you may consult these same sources to arrive at your own actual cash value conclusions. If the estimate from your insurer looks significantly lower than yours, that insurer may seek to pay out less compensation for your totaled car than you deserve.

Insurers should factor more than just repairs into your total compensation amount. Their calculations should also include any and all taxes and fees you might otherwise have to pay out of your own pocket. If your insurer has failed to include any of these elements in its calculations, you may have a legal case against them.

How Does Your Insurance Coverage Affect Your Compensation?

Typical levels of auto insurance include liability insurance, collision insurance, and comprehensive insurance. If you only purchased liability insurance, your insurer will not compensate you for a total loss. However, if another party bears at least some responsibility, you could try filing a third-party claim with their insurer.

Collision insurance may cover the total loss resulting from an accident involving another vehicle or object, whether you caused the collision or not. Comprehensive insurance should cover total losses related to natural events such as fires, floods, or a falling tree branch.

How Might You Dispute the Proposed Compensation?

In addition to doing your own research into the actual cash value of your car, you can also assemble other evidence that supports a higher compensation amount that your insurer wants to offer. For instance, you can get a second opinion by asking another auto shop technician or appraiser to provide an independent damage estimate.

The care you have put into your car over the years can also support your claim as to its true value. Collect all your repair and maintenance records, along with any recent photos or videos that display your car's condition just before the incident occurred.

How Can an Attorney Help You With Your Claim?

If your insurer disregards your side of the story even after you have provided plenty of information to support your claim, you may need to pursue legal action. An experienced attorney can examine all the facts and determine whether you have a strong case. If you do, the attorney can recommend strategies ranging from arbitration to a lawsuit.

A lowball offer does not serve as the only reason you might want to sue. Even if you agree to the compensation offer, an unreasonable payout delay from the insurer might provide grounds for a lawsuit. A delay that compels you to undergo an appraisal might also give your attorney ammunition for filing a bad faith claim.

Your attorney may discover that other car owners hold similar grievances against your insurer related to underpayment of total loss claims. If so, you and these other car owners may qualify to engage in a class-action lawsuit to fight for your fair compensation.

Whether you strongly feel that your auto insurance company has undervalued your total loss or you just need guidance throughout the process of filing a total loss claim and receiving financial compensation, Jeeves Law Group can help. Contact us today to tell us about your case and request a free evaluation.