If your car is destroyed in an accident, your insurance provider may declare your vehicle as a “total loss.” At this point, your insurer may use your vehicle’s fair market value (FMV) to determine how much money to give you. In a case where someone else is responsible for your collision, a North Charleston car accident lawyer may be able to help you seek further damages.
The Shelly Leeke Law Firm has more than a decade of experience with injury claims. Our South Carolina car accident attorney can explain what happens after your car is totaled in a crash. For more information, reach out to us.
Total Loss Definition
Essentially, a total loss means an insurance company has deemed your car to be unsafe. The loss indicates it is impossible to repair your car due to safety standards. Along with this, the business finds that repairing your vehicle may cost more than what it is actually worth.
Your car may be totaled and undrivable after an accident. Regardless, you are still required to make payments on an auto loan until it is fully settled. In some instances, the amount a person owes on their total-loss car exceeds what their vehicle is currently worth.
If you have gap coverage, you may be in good shape to cover any costs relating to an outstanding loan on a totaled vehicle. This insurance helps you pay the difference between what you owe on a car you can no longer drive and its current value. Even if you do not have gap insurance, you should continue to pay for your totaled car since choosing not to do so can negatively affect your credit.
Steps to Take After Your Car Is Totaled in an Accident
South Carolina has a three-year statute of limitations for injury claims. If you got hurt and your car was totaled due to someone else’s negligence, file your claim as soon as you can after your crash. Here are things you can do to submit your claim and improve your chances of getting full compensation for any losses you incurred.
Notify Your Insurance Company
Tell your auto insurer about your collision. It is mandatory for every driver in South Carolina to have auto insurance coverage. Your insurance provider can work with an at-fault party’s insurer to help you get compensation.
Remove Personal Items from Your Car
Take any personal items out of your car, including navigation and phone systems. Also, remove your vehicle’s license plates. Ultimately, you will need to return your car title and keys to your insurer.
Determine Your Car’s Fair Market Value
According to the South Carolina Department of Motor Vehicles (SCDMV), your car’s fair market value must be determined on the date just before the accident that led to your claim. If your claim does not involve an insurance company, your vehicle’s FMV is calculated based on when it was most recently lawfully operated on a public highway or the last date it was registered, whichever is later. Kelley Blue Book, the National Auto Dealers Association (NADA) Used Car Guide, and other online sources may be used to help you figure out your vehicle’s value.
Confirm Your Vehicle Has Been Declared a Total Loss
Your car is considered a total loss if 75% or more of its fair market value has been lost due to damage coming from your accident. There are times when an insurance company may say your car is a complete loss in spite of the fact that it has not lost 75% or more of its FMV. If an insurer finds a car to be a full loss, it must notify SCDMV so your vehicle’s title can be updated.
Just because your car is totaled does not mean you will automatically secure compensation for pain, suffering, and other losses you incur in your auto crash. At the Shelly Leeke Law Firm, we can help you pursue damages on top of those associated with the total loss of your vehicle. To learn more, get in touch with us.
When a Car Is Marked as “Salvage”
In many instances, a totaled car will be marked as “salvage.” At these times, a vehicle may be given a salvage title, which indicates it previously suffered significant damage. Exceptions to times when a totaled vehicle will be considered salvage include:
- The vehicle is classified as “junk”
- Its value is less than $2,000
- It has incurred damage of less than 75% of its FMV and not sustained water or fire damage
- It has been titled as an antique vehicle
You have the option to keep your car after a total loss claim. With this option, you will get an updated title. If you rebuild your vehicle, you must submit documents to SCDMV to have your title changed to “Salvage Rebuilt.”
When to Cancel Your Car Insurance After a Total Loss
If someone hits your parked car or does anything else that causes you to suffer a total loss, you may not want a replacement vehicle. In this situation, you may want to cancel your auto insurance coverage. This helps you avoid insurance costs while you do not have a car.
Keep in mind that if you stop your insurance policy, you may have to pay higher rates down the line. Insurance providers evaluate a wide range of factors when they decide whether to offer coverage. If an insurer deems you to be a high-risk driver at a later date, you may wind up paying more for your policy than you did prior to your collision.
Of course, it may be beneficial to seek damages as part of a personal injury claim after your auto crash. You may be able to receive a car accident settlement that covers your economic and non-economic losses. This settlement may provide you with enough money so you can rebuild or replace your totaled vehicle.
Get Started with an Auto Accident Claim
The Shelly Leeke Law Firm has an outstanding track record in auto accident cases. Our team can help you pursue compensation from anyone responsible for your car crash. To schedule a free consultation, contact us today.
