How Does Your Insurer Decide if Your Car is a Total Loss After a Crash?

If you’ve ever known someone who was in a car accident, chances are you’ve heard them discuss whether or not their vehicle was “totaled.” Many people worry about their vehicle being totaled after a car accident because that means it’s beyond repair. Depending on the terms of your insurance policy, if your vehicle is totaled you might receive compensation for your loss. Here, our best car accident lawyers in the Bronx are going to discuss how an insurance company determines whether a vehicle is a total loss after a car accident and what you can do if your car is.

Claim A Free Case Evaluation

  • Contact The Barnes Firm

    Fields marked with an * are required

Will My Insurance Company Believe My Car Was Totaled?

First and foremost, it’s essential to understand that it’s your insurance company’s job to decide whether your vehicle is a total loss after an accident. Just because you believe your car is beyond repair doesn’t mean your insurance company will automatically agree. For an insurance company to rank your car as being totaled, three factors must be present:

  • The car can’t be repaired safely
  • The repairs cost more than the car is worth
  • The car repairs are higher than the total loss threshold (which varies by state)

In New York, the total loss threshold is 75% of the cost of the vehicle. Meaning, if the costs of the repairs are more than 75% of the car’s total value, it’s considered a total loss. The Barnes Firm’s best car accident lawyer in the Bronx says most insurance companies will send an adjuster to evaluate the vehicle and determine whether it’s a total loss.

Claim A Free Case Evaluation
Toy cars demonstrating an accident on a background of 100 dollar bills

How Do I Know What My Car is Worth?

When the insurance adjuster makes the decision to total your vehicle, they will also determine what your vehicle is worth. A vehicle’s value is dependent on these factors:

  • The current condition of the vehicle (body, interior, tires, motor, etc.)
  • The current mileage of the vehicle
  • The current sales price of the same model car in similar condition

It’s not uncommon for insurance companies to attempt to get you to settle for less than your vehicle is worth. It’s important to have an educated idea of the value of your car at all times. If you feel like the insurance company is not offering you a fair price for your totaled vehicle, a trusted car accident attorney can help you fight to win the compensation you deserve.

What are My Options If My Vehicle is Totaled?

If your vehicle is totaled, the insurance company will provide you with a check for the value of that vehicle (assuming you were carrying the appropriate coverage on your insurance policy.) Once you receive the check for your vehicle, you can use it however you choose. It’s important to note, however, that if you had a lien on your vehicle, you must pay off the remainder of your loan first.

Once your car loan is paid-in-full, you can choose to use the money from your totaled vehicle as a down payment on a new vehicle, to purchase a used vehicle outright, or save the money to purchase a car in the future.

Rear View Of Female Driver With Neck Injury Getting Out Of Car After Crash
Rear View Of Female Driver With Neck Injury Getting Out Of Car After Crash

What are My Options If My Vehicle is Totaled?

If your vehicle is totaled, the insurance company will provide you with a check for the value of that vehicle (assuming you were carrying the appropriate coverage on your insurance policy.) Once you receive the check for your vehicle, you can use it however you choose. It’s important to note, however, that if you had a lien on your vehicle, you must pay off the remainder of your loan first.

Once your car loan is paid-in-full, you can choose to use the money from your totaled vehicle as a down payment on a new vehicle, to purchase a used vehicle outright, or save the money to purchase a car in the future.

When Should I Contact a Knowledgeable Car Accident Attorney Near Me?

If you’ve been in a car accident recently, you need an attorney on your side who knows how to fight for you. At The Barnes Firm, our best car accident lawyers in the Bronx can be a source for legal representation for car accident cases across the state of New York. Our team of knowledgeable attorneys has won more than $2 billion in settlements and will fight for you too.

To schedule a free consultation, call our office or fill out our online contact form today. There’s no better time than now to get the settlement you deserve.

The Barnes Firm (800) 800-0000

Claim A Free Case Evaluation
en English
en Englishes Spanish