If you have been involved in a car accident that caused major damage to your vehicle, you might be wondering how you will get the money for a new one. The insurance company may tell you that your car is totaled, but what does that mean?
Understanding what it means to total a car and how to calculate its value is crucial to getting the compensation you are owed for the damages to your vehicle. Our experienced Minneapolis car accident lawyers have gathered all the key details to help you navigate this complex process.
Dive into the information below to learn everything you need to know about totaled cars and how to get the money you deserve.
When Is a Car Considered Totaled?
A car is considered totaled when it is damaged beyond repair or when the cost of repairs exceeds the vehicle’s value. The insurance company will consider the vehicle a “total loss” and will typically compensate you for the car’s value instead of paying for repairs.
In Minnesota, a vehicle is usually considered totaled when the cost of repairs exceeds 70% of the actual cash value of the car. For instance, imagine you have a vehicle that is worth $30,000. If the cost to repair your car after an accident is $21,000 or more, then the vehicle will likely be considered a total loss.
Who Is Responsible for Paying for My Totaled Car?
Minnesota is a no-fault insurance state, but the no-fault rules only apply to injuries resulting from the crash and not property damage. This means that the driver who caused the accident will be responsible for the damages to your car. For this reason, drivers are required to carry a minimum of $10,000 of property damage liability coverage.
If you caused the crash that damaged your car, you will be responsible for the damages. This is why it is a good idea to carry collision and comprehensive insurance coverage. Your collision policy should pay for your totaled car if you were the one who caused the accident.
How Much is My Totaled Car Worth?
The value of your totaled car is typically determined by calculating the fair market value of the vehicle. The fair market value means how much the car was worth just prior to the accident. According to Minnesota’s auto insurance guide, some factors that are used to determine the fair market value include:
- Age of the vehicle
- Make and model
- Mileage
- Prior damage
- Features and accessories
- Aftermarket parts you may have added
You can typically request a valuation report from the insurance company that provides more details about how they calculated your car’s value. In some cases, you may disagree with their valuation. Keep reading below to learn what to do if this happens.
What Can I Do If I Disagree With The Insurance Company’s Valuation?
First, you should do your own research to get an estimate of your car’s fair market value. Check dealer listings, third-party valuation sites, and other valuation tools for similar vehicles. Once you have a good idea of your car’s value, you can then decide whether the insurance company is making you a fair offer.
Remember that once you accept the insurance company’s check, you will be unable to get any additional compensation for your vehicle. If your vehicle is financed, their offer might not even be enough to pay off your car loan. If you disagree with their valuation, you can reject their offer and attempt to negotiate a higher amount.
You will need to provide them with clear evidence of why you believe the value should be higher. Show them dealer listings or classified ads of similar vehicles at a higher price. Give them detailed reports from third-party valuation tools, like NADA or Kelley Blue Book. This evidence could be enough to make them increase their valuation of your car.
If you still believe the insurance company is not making you a fair offer, you may have to file a lawsuit. In that situation, it is a good idea to hire a lawyer who can help you get fair compensation for your totaled car. Remember that you have a limited amount of time to file a claim after an accident, so do not delay in getting the help you need if the insurance company is not taking you seriously.
Contact the Minnesota Car Accident Law Firm of Hall Law Personal Injury Attorneys For Help Today
For more information, please contact an experienced car accident lawyer at Hall Law Personal Injury Attorneys to schedule a free initial consultation today. We have three convenient locations in Minnesota, including Minneapolis, St. Cloud, and Edina.
We proudly serve Hennepin County, Stearns County, and its surrounding areas:
Hall Law Personal Injury Attorneys – Minneapolis
825 Nicollet Mall, Suite 615
Minneapolis, MN 55402
(800) 292-1979
Find us with our GeoCoordinates: 44.97514068188609, -93.27349979814521
Hall Law Personal Injury Attorneys – St. Cloud
1010 W St Germain St # 320
St Cloud, MN 56301
(320) 255-1000
Find us with our GeoCoordinates: 45.55903612908877, -94.16420517306956
Hall Law Personal Injury Attorneys – Edina
5200 Willson Rd #203
Edina, MN 55424
(952) 697-5560
Find us with our GeoCoordinates: 44.90963991439301, -93.34937342327198
