A serious accident can cause a lot of damage to your vehicle. At a certain point, an insurer might decide that they will just pay out for a “total loss” instead of financing repairs. How do things get to this point? That’s something that a car accident lawyer in Queens can answer for you.
When is a Car Considered a Total Loss?
Generally, a car is a total loss once the cost to repair it is greater than its actual cash value. A car starts to lose value as soon as it’s driven off of a dealership’s lot. However, some states have their own formula for determining when an insurer should consider a car a total loss. New York encourages insurers to declare a vehicle a total loss if the repair costs would exceed 75% of the actual cash value of the car.
Who Pays For a Total Loss?
Who pays you for your vehicle after a total loss can vary based on the circumstances of your accident. You can make a first-party claim, one with your own insurance policy, or a third-party claim, one with someone else’s insurance policy. Which is your best option depends on how the crash occurred and who was responsible.
If another driver is to blame, their liability coverage would be responsible for reimbursing you. If you are to blame for the accident, then you have to rely on your own coverage. Collision coverage can help if you were in an accident with another vehicle. Comprehensive coverage can be used if your car was totaled in another way. Severe weather or a falling tree are good examples of things other than another vehicle that can total a car.
Unfortunately, collision and comprehensive coverage are optional. If you don’t have them and the other driver isn’t liable for the crash, you could end up getting nothing at all.
How Long Will It Take to Get Paid?
It can take as little as a few weeks to get paid for your total loss, but some claims can take far longer to process. Complicating factors include debates over fault, how quickly you file a claim, and how long investigations and negotiations take.
What Kinds of Complications Can Arise With These Types of Claims?
One thing that can complicate claims like these is the loan on the vehicle. If you financed your vehicle and still owe money to your lender at the time of the accident, your payment for the total loss is likely to go to your lender instead of you.
You may also run into issues if you owe more money on your car than it’s worth. Let’s say you owe $10,000 on your car. The insurance company says it’s only worth $8,000. You would be on the hook for paying your lender that $2,000 unless you have gap insurance.
Contact Our Law Firm
If you want to learn more about your legal options after a serious car accident, contact the Law Offices of George Poulos. Our team can tell you more about how an experienced personal injury lawyer can help you negotiate with insurers and get the kind of settlement you deserve.
