Totaling a Car

Sometimes, following an accident, an insurer will pronounce that a car or vehicle has been totaled. Many people are unaware of what it means to total a car in an accident. Insurers know but might not be able to explain it to the person whose vehicle has just been condemned.

In the majority of states in the United States, a vehicle is a total loss, or totaled, when the cost to repair the vehicle, including parts and labor, is equal to or exceeds 75% of the car’s fair market value which is not the same as the actual cash value. So if a car is worth $4,000 and is in an accident that will cost $3,500 to repair the damage, the car is totaled since $3,500 is greater than 75% of the car’s fair market value of $3,000.

The majority of the time, insurance companies do not rely on vehicle value calculators like the Kelly Blue Book and so there is little value in a car owner looking there to argue with the insurance company. The insurance company will be responsible for inspected, evaluating, and valuing the car with the value based on the car’s options (power seats as opposed to manual, sunroof or no sunroof, etc.), its condition (new tires, flawless paint job), and mileage.

Evaluating the car becomes more difficult after an accident since the car may have had significant damage done to it in the accident. So the real indicators are the options, age, and mileage.

Contact a Milwaukee Car Accident Lawyer

If you have been in a car accident and were injured or had your car totaled, contact the Milwaukee car accident lawyers of Habush Habush & Rottier, S.C. at 800-242-2874.