Property Damage – What is the value of my “total loss?”
In previous entries we discussed the different options that personal injury victims in Kentucky have when dealing with the property damage that was caused by the accident. Previous entries also discussed what it means when the damage is so bad that it is considered a “total loss.” A “total loss” is when the cost to fix the property damage to your car is more than the car is actually worth.
Whether you decide to have the property damage handled through your own insurance company or the company for the other driver, if your car is a total loss, both companies must decide on the value of the car. This is done initially to determine whether the cost of repairing the car is more expensive than just paying you for the total value of the car. Essentially the insurance company buys the car from you and turns around a sells it for scrap or at auction. This process involves you signing over the title to the car to the insurance company and the company sending you a check for the value of the car.
However, how does either insurance company decide how much you will get for the total loss of the car? They primarily look in the same place you do when trying to figure out what a used car might cost: guidebooks, quotes from dealers, ads online and in the newspaper, or other sources like Kelley Blue Book or NADA. The idea for most companies is to gather information about the value of models similar to yours in your market. In addition the company will deduct or increase value for things like mileage and accessories. The company will also deduct value for the condition your car was in prior to the accident for things like cracked windows, dented, scraped or rusted parts, and other excessive wear and tear or damage, such as a badly stained interior.
If you disagree with whichever company you have decided to use to cover the property damage (your own or the other driver’s), doing some research of your own can help. Looking up the value of your car on your own, providing receipts from accessories you may have added, or getting quotes from local dealers can all help increase the amount that the insurance company is willing to pay you in a total loss situation. Unfortunately, however much you think the car is worth, at the end of the day there will be an amount that the insurance company is unwilling to pay.
For more information on your options regarding property damage, please contact the experienced attorneys at Bahe Cook Cantley & Nefzger PLC. While we do not typically handle these types of claims, we realize that this is part of the accident process and are happy to try and answer your questions.
