Total Loss Car Claims in Michigan

Totaled Car Meaning

A totaled car, in insurance terms, means a vehicle that has sustained damage so severe that the cost of repairing it would exceed its actual cash value (ACV) at the time of the accident.

When Is a Car Considered Totaled?

A car is considered totaled by insurance companies when the cost of repairing the vehicle exceeds a certain percentage of its actual cash value (ACV) immediately before the damage occurred. This percentage varies by insurer and state law, but a common threshold is between 70% and 75%. In Michigan, a car is considered totaled when the cost of repairs plus the salvage value is at least 75% of the car’s ACV.

How Do Adjusters Determine If a Car Is Totaled?

Insurance adjusters follow a systematic process to determine if a car is totaled. The process involves several steps, the first of which is assessing the damage to the vehicle. The claims adjuster will estimate the repair costs of the vehicle after the accident.

Then, they calculate the car’s actual cash value. To do this, they consider factors such as age, mileage, market value, and the car’s pre-accident condition. After that, they will compare the estimated repair costs with the car’s ACV. If the repair costs plus the salvage value meet a certain percentage of the vehicle’s ACV, it is deemed a total loss.

How Much Damage Does It Take to Total a Car?

The general rule of thumb is when the cost of repairing the vehicle plus the salvage value exceeds a certain percentage of the car’s ACV before the accident, it is considered totaled. Most states use a percentage between 70% and 75%. Michigan uses a percentage of 75%.

What Happens When Insurance Totals Your Car?

When your car is declared a total loss by insurance, they will begin the claims process by calculating the ACV of your vehicle. They consider many factors during this determination. The insurance company will notify you that your vehicle has been determined a total loss. This notice should also include information on how they calculated the ACV and what the next steps will be.

Generally, they will offer an insurance payment (settlement) based on the vehicle’s ACV, minus any insurance deductible you owe. The settlement may also account for other expenses, like sales tax and registration, associated with replacing your vehicle.

To process the settlement, the insurance company will typically want you to sign the car’s title over to them. You would transfer ownership from yourself to the company, and they will handle the disposal or sale of the vehicle.

Once you complete all the paperwork and the title transfers, the insurance company will issue the settlement payment to you. We strongly recommend working with an attorney throughout this process. We can help ensure that you receive a fair settlement.

What Happens When Your Car Is Totaled But Still Drivable?

When motor vehicles are declared a total loss but remain drivable, the insurance company will calculate their actual cash values (ACV) and offer a settlement based on this amount minus the deductible. If you choose to keep the vehicle, you may need to accept a reduced settlement amount, reflecting the car’s salvage value, and obtain a salvage title from your state’s DMV.

Before it can be legally driven again, the car may require repairs and must pass a safety inspection, after which it can be re-registered, often with a rebuilt title. Remember, insuring a car with a salvage or rebuilt title can be challenging. Insurers may potentially offer limited coverage, and the vehicle’s resale value will be significantly diminished.

If My Car Is Totaled, Will the Insurance Pay It Off?

The type of insurance coverage used if the car is totaled depends on the kind of loss. Collision coverage covers total losses due to accidents with other vehicles or objects. Comprehensive coverage covers total losses due to severe weather, vandalism, or collisions with animals.

If the insurance company declares your car a total loss, they will use the appropriate coverage to pay you the ACV of your vehicle at the time of the accident. This should compensate you for the loss of your vehicle so that you can replace it.

How Much Will Insurance Pay for My Totaled Car?

The amount your insurance company will pay for your totaled car depends on several factors, including the terms of your insurance policy, the actual cash value (ACV) of your vehicle, and any applicable deductibles.

• Actual Cash Value (ACV): Insurance companies typically determine the ACV of your car based on its pre-accident market value, considering factors such as its age, mileage, condition, and any upgrades or modifications.
• Deductible: If your insurance policy includes a deductible, you’ll be responsible for paying this amount out of pocket before the insurance company issues a payment for your totaled car.
• Coverage Limits: Your insurance policy may have coverage limits that cap the maximum amount the company will pay for a totaled car.
• Additional Coverage: If you have additional coverage options like gap insurance, it may cover the difference between the ACV of your car and the amount you owe on a loan or lease.

Totaled Car Value Calculator

Most totaled car value calculators will ask for similar information. This information generally includes the following.

• Vehicle details: You provide details about your car, including its make, model, year, trim level, mileage, condition, and any additional features or options. The calculator uses this information to assess the vehicle’s ACV before the accident. It takes into account factors such as depreciation, market trends, and regional pricing variations.
• Accident details: You input details about the accident that led to the total loss, including the extent of the damage and whether the car is drivable or not. Based on the information provided, the calculator estimates the total loss value of your car, factoring in depreciation and the condition of the vehicle post-accident.

Kelley Blue Book Totaled Vehicle Actual Cash Value

The Kelley Blue Book is an essential resource for those looking to price new and used vehicles. It provides a fair market range of prices that car buyers may pay for a specific car using information like make, model, style, and year. Kelley Blue Book can be an invaluable source of pricing information about vehicles, particularly when it comes to the car’s ACV before the accident.

How to Get the Most Money from Insurance for Totaled Car

To maximize the payout from insurance for a totaled car, gather thorough documentation of the accident, including photos, repair estimates, and the car’s pre-accident value. Research the actual cash value (ACV) of your car using reputable sources and negotiate with the insurance adjuster, providing evidence to support your valuation.

Consider retaining ownership of the car and inquire about salvage value, as this could affect the settlement offer. If unsure, seek guidance from a legal professional to ensure you receive the highest possible compensation.

Who Gets the Insurance Check When a Car Is Totaled?

When a car is totaled, the company typically issues the insurance settlement check to the vehicle owner. However, if there is a lienholder, such as a bank or finance company, with a financial interest in the car, the insurance company may issue the check jointly to both the vehicle owner and the lienholder.

In such cases, the check must be endorsed by both parties before it can be cashed or used to pay off the loan. If the settlement amount exceeds the outstanding loan balance, the remaining funds are typically paid to the vehicle owner. Keep in mind that, depending on the circumstances of the accident, your insurance premium may increase after the accident.

How Long Does It Take to Get Insurance Check for Totaled Car?

The timeline for receiving an insurance check for a totaled car can vary depending on several factors, including the complexity of the claim, the responsiveness of the parties involved, and the insurance company’s internal claims process. In general, insurance companies strive to process claims as quickly as possible, but it typically takes anywhere from a few days to a few weeks to receive the settlement check.

Factors that can affect the timeline include the need for a thorough investigation of the accident, appraisal of the vehicle’s value, coordination with any lienholders, and review and approval of the claim by the insurance company. Promptly providing all required documentation and cooperating with the insurance adjuster can help expedite the process.

What to Do When Your Car Is Totaled and You Still Owe Money

If your car is totaled and you still owe money on it, you should notify the insurance company, file a claim, and work with the insurer to determine the payout amount based on the car’s actual cash value (ACV). If the insurance payout is insufficient to cover the remaining balance on the loan or lease, you may need to explore options such as gap insurance coverage, negotiating with the insurer, or establishing a payment plan to settle the debt. It’s crucial to promptly communicate with the insurance company to address the situation effectively and minimize financial impact.

The Car Insurance Company Wants to Total My Car, But I Want to Keep It – What Now?

If the car insurance company wants to total your car, but you want to keep it, you can negotiate with the insurer to reach an agreement. Typically, you’ll need to accept a reduced settlement amount, which factors in the salvage value of the vehicle.

Once you agree on the terms, the insurance company will deduct the salvage value from the total settlement amount and issue you a check for the remainder. Remember that you’ll need to obtain a salvage title for the car from your state’s Department of Motor Vehicles, and repairs may be necessary to make the vehicle roadworthy again.

My Car Is Totaled, and I Only Have Liability Insurance – What Can I Do?

If your car is totaled and you only have liability insurance, unfortunately, your insurance policy may not cover the damage to your vehicle. In this situation, you’ll need to explore other options for replacing your car or covering the costs of repairs. Consider paying for repairs out of pocket, purchasing a replacement vehicle using personal funds or financing, or exploring public transportation options if feasible.

Do I Pay My Deductible Before or After My Car Is Fixed?

If you decide to repair your totaled car, you typically pay your deductible after your car is fixed and the repairs are completed. When you file a claim with your insurance company for car repairs, the repair shop will often bill your own insurer directly for the cost of repairs, minus your deductible.

Once the repairs are finished, the repair shop will provide you with an invoice that outlines the total cost of repairs, including your deductible amount. You’ll then pay the deductible directly to the repair shop or to your insurance company, depending on their specific procedures.

Total Loss Settlement Process

The total loss settlement process involves several steps. First, the insurance company assesses the extent of damage to the vehicle and determines if it meets the criteria for being declared a total loss. If so, they calculate the actual cash value (ACV) of the car before the accident and subtract any salvage value. The insurance company then offers a settlement payment to the policyholder based on this calculation.

Once the settlement is agreed upon, the policyholder typically signs over the vehicle’s title to the insurance company and receives the settlement payment, minus any deductible. If the policyholder chooses to keep the totaled vehicle, the insurance company deducts the salvage value from the settlement amount, and the policyholder retains ownership but may need to obtain a salvage title.

Contact a Southfield, Michigan Car Accident Attorney at Lipton Law

As experienced advocates in navigating total loss car claims, Lipton Law is dedicated to guiding you through every step of the process with compassion and skill. Our team understands the complexities of Michigan’s no-fault insurance laws and will work tirelessly to ensure you receive the maximum compensation for your totaled vehicle.

Whether negotiating with insurance companies or providing legal representation in dispute resolution, we are committed to protecting your rights and securing the best possible outcome for your case. Trust Lipton Law to be your steadfast ally during this challenging time. Contact us today for a consultation, and let us help you move forward with confidence.