It’s not unusual to feel overwhelmed or frustrated when dealing with the aftermath of a car accident. If your car was totaled in the accident, you may wonder, “Can I keep my totaled car?”
What Does a Totaled Car Mean?
In New York, insurance companies consider a car a total loss, when the cost of repairs exceeds 75% of the car's actual cash value (ACV). The ACV represents how much the vehicle was worth before the accident, and insurance companies also include a reduction in value for depreciation. This means that the ACV will be less than the price you paid for the vehicle.
Also, insurance companies may declare it a total lossif your car is no longer safe to drive, even after making all the necessary repairs.
When your car insurance company declares your car totaled, you have the option to either negotiate a higher settlement or accept the settlement. Who pays for a totaled car depends on state laws, and in New York, which is a no-fault state, each driver can file a claim with their own insurance carrier.
The insurance company will then offer you a settlement amount, and if you make a claim on your own collision or comprehensive insurance, your deductible amount will be subtracted from your insurance check. Don’t be afraid to negotiate with the insurance company before accepting an offer, especially if you think that the amount does not reflect the car’s true value. But once you have accepted the settlement, you will receive a check and your car will be picked up for salvage.
What Would Happen if You Still Have Financing on Your Totaled Car?
You must pay off your auto loan from the settlement for the totaled car if you still owe money on the financing. However, if you have gap insurance or total loss insurance, it will cover the difference between the vehicle's value and the remaining amount.
For instance, you financed a $30,000 car. After a car accident, an insurance adjuster considered it a total loss. If your comprehensive coverage plan provides you with a payout of only $20,000, you still owe $10,000. In this situation, gap insurance can cover your outstanding balance of $10,000.
How Do You Negotiate With Car Insurance Adjusters?
Remember that you can always negotiate a fair settlement for your totaled car. And to make the process smooth and easy, it is necessary that you gather sufficient evidence, such as photos of the damage from various angles.
It is also important that you know your policy and understand its coverage. Then, explain your point and present your evidence to support your claim that your car’s value should be higher.
Nevertheless, be open to compromise or seek assistance from a car accident lawyer who can help you with your legal claim. Here at Horn Wright, we can tell you which is the best option for you: whether to accept the settlement, wait for a separate settlement offer, or go to trial. We understand that you have substantial medical bills and injuries, and you need help figuring out your next steps in your property damage claim. We will help you make informed decisions without having any additional stress in your personal life so you can focus more on your recovery.
Can You Keep Your Totaled Car?
You may keep your totaled car if you don’t think the car is a total loss to you, or if you want to, sell it for parts. Also, you may want to keep it for its sentimental value, which is completely understandable. However, you would need to sign your title to the insurance company since the vehicle was deemed a total loss, and in return, they will give you a salvage title.
The law defines a ‘salvage vehicle’ as one that meets the following criteria: (1) was transferred to or acquired by an insurance company with a Salvage Certificate; (2) has repair costs that are more than 75% of the pre-damage retail value of the vehicle; (3) was issued a salvage title from another state and brought to New York; or (4) was declared a ‘wreck’ on the back of its title by the owner at the time of sale or transfer.
A salvage title is issued by the New York State Department of Motor Vehicles (DMV) to signify that an insurance company has declared a vehicle a total loss or extensively damaged. The DMV also issues a salvage title to a car to indicate its non-roadworthy status, signifying that its current condition precludes legal driving, registration, or sale. This means that once your car has a salvage title, it will remain branded as such, unless it undergoes the process of rebuilding and passes an examination to be rebranded as a “rebuilt title.”
The DMV requires that a salvage vehicle be first examined to determine if it is to be rebuilt for use on roadways before a new title certificate or registration is issued.
Discuss Your Case With a New York Attorney
If a car accident has damaged your vehicle, please contact Horn Wright at (888) 258-HNWT to learn more about your legal options. Our legal team has extensive experience handling such cases and can provide you with the guidance you need to get the compensation you deserve.