Car Accident in Atlanta: Understanding the Term "Totaled"
In the aftermath of a car accident, understanding the term "totaled" can provide clarity and ease in navigating the insurance process. A totalled car is defined as a vehicle for which the cost of repairs exceeds its actual cash value (ACV) at the time of the accident.
Insurance companies determine this by inspecting the vehicle damage, estimating repair costs, calculating the car’s ACV (which accounts for depreciation), and comparing repair costs to the ACV or using a state-specific percentage threshold or total loss formula. For example, if repair costs exceed 70-80% of the car’s value (threshold varies by state/insurer), it may be declared totaled.
When your car is deemed totaled, your insurer will typically offer a payout equal to the ACV of your vehicle before the accident. You surrender the totaled car (which may be sold for salvage), and you receive the settlement. If another driver is at fault, you may pursue a claim against their insurer to maximize your compensation. This payout allows you to purchase a replacement vehicle, though the settlement might not cover the full cost of a new car depending on depreciation and insurance terms.
It is important to understand state-specific rules and negotiate with insurers to ensure fair compensation for your totaled vehicle. For instance, in Tennessee, the Total Loss Threshold is 75%, while in Florida, it is 80%.
Prioritizing safety is important after a crash when making choices about a totaled car. Keeping a totaled car may not be safe to drive, and a new vehicle might be necessary for future safety. Depreciation affects the actual cash value of a car, with older cars having lower values.
Insurers aim to protect their customers and manage risks effectively when deciding if a car is totaled. However, it is crucial to stay informed and prepared to protect yourself and your family during this process.
- If the repair costs of your totalled car exceed 70-80% of its actual cash value (ACV), as is the case in Tennessee and Florida, then it might be declared totaled by insurance companies.
- Purchasing a replacement vehicle after your car is deemed totaled is an option, but the payout you receive from the insurance company might not cover the full cost of a new car, due to depreciation and insurance terms.
