My Car Has Been Totaled In An Accident. How Much Money Am I Owed?

The consequences of a car accident can be frustrating and overwhelming. When a crash leads to damage or total loss of a vehicle, people frequently need a replacement car quickly for important activities like getting to work, taking kids to school, and buying groceries for their family. In Texas, the term “fair market value” is used as the legal standard to evaluate property damage when a vehicle is considered a total loss.

How Do I Know If My Car Is Totaled

The word “totaled” might suggest a serious accident when talking about a car, but it actually just means that the cost to fix it is more than what the car is worth. For example, if a car valued at $2,500 gets damaged in a crash and the repair bill is $3,000, that car would be considered a total loss or “totaled.” If a car worth $25,000 experiences the same level of damage in an accident and the repair costs are $3,000, it wouldn’t be labeled as totaled. But when a car is totaled, the law assumes the owner can quickly buy a new vehicle, without any obligation for the at-fault driver or their insurance to pay for a rental car until the new one is ready. Conversely, if the car isn’t totaled, there will be a time when it’s being fixed, and the owner should receive fair compensation for not being able to use it during that period, usually through the reasonable cost of a rental car.

Determining Fair Market Value

Fair market value refers to the price that both a willing seller and a buyer would agree on for a vehicle, considering its condition before the accident. However, it’s crucial to understand that the fair market value is often less than what commercial sources, like online listings, suggest. Moreover, the value given to a vehicle deemed ‘totaled’ is usually lower than the cost of buying a similar replacement vehicle.

Sometimes, people add unique features or customize their vehicles. It’s a good idea to keep receipts for any upgrades, like new tires or enhanced sound systems. However, many individuals feel disappointed when these extras don’t significantly impact the property damage assessment after an accident.

While these custom features might slightly increase the property’s value, it’s essential to realize that the market may not recognize their worth. Although these improvements can bring happiness to their owners, the actual fair market value of these enhancements is often less than the extra insurance coverage that some people buy for their custom vehicle features.

Why You Need An Attorney Knowledgeable in Property Damage

The resolution of most vehicle property damage claims typically happens through discussions between the vehicle owner and the opposing insurance company. If there is a total loss, both sides come to an agreement on how much compensation will be paid, and the vehicle owner hands over the title to the insurance company. The insurance company then makes sure that any remaining liens, like a car loan, are cleared, and the leftover money is given to the owner.

If the car can be fixed for less than its fair market value before the accident, the opposing insurance company is responsible for paying for the reasonable repair costs, plus extra compensation for the time the car is out of service due to repairs. However, if the accident wasn’t caused by someone else’s fault, the negotiation usually happens between the vehicle owner and their own auto insurer (if they have coverage for these types of losses). It’s important to remember that in this case, the payment from the insurance company will be lessened by the deductible amount.

A knowledgeable personal injury attorney can assist you in understanding your property damage insurance coverage. Some people might not realize they have inadequate coverage, which could leave them unable to pay for their vehicle or repairs after an accident. Furthermore, some individuals may have property damage coverage, but their policy limits might not be enough given the value of their vehicle.

IF YOU’VE BEEN INJURED IN A CAR, TRUCK, OR MOTORCYCLE WRECK, CONTACT THE LAW OFFICE OF BRIAN BRUNSON TODAY.

Named one of the “Best Car Accident Lawyers in Dallas” by Expertise.com, Brian Brunson is Dallas personal injury attorney who is dedicated to helping clients who have suffered a car, truck, or motorcycle injury through the negligent or wrongful conduct of other drivers. In addition, his professionalism is unmatched and the firms’ client reviews speak for themselves.

We proudly serve the Dallas-Fort Worth metroplex and surrounding areas, our office supports the legal needs of a wide variety of clients. Let the Law Office of Brian Brunson be your advocate in your time of need and help you put your life back together. If we can’t win or settle your case, you don’t pay a dime! We know it can be daunting to take that first step after you’ve been hurt. Contact Brian Brunson today via email or call us toll-free at 1-844-41-WRECK. We can help, when no one else will.