Who Decides if My Car is Totaled after a Tampa Bay, Florida Area Auto Accident?

When all is said and done, an insurance company will decide if your car has been totaled in an auto accident. Whether your accident occurred in Tampa, Clearwater, Temple Terrace, or Brandon, all insurance policies are written to give the insurance company the last word on if a car is totaled or not. However, just because a car is totaled, it does not necessarily mean you have to give the car to the insurance company in return for a payoff.

To an insurance company, “totaled” means the cost to repair the car is at least 70-80 percent of the car's value. In some cases, an insurance company may total a car that has been damaged up to only 51 percent of its value. Due to this fact, your car may be deemed totaled even if it is still drivable. It all depends on what the insurance company believes will be the most financially practical option. Here are some factors your insurance company will consider when deciding whether to repair or total your car:

• The cost of repairs
• The cost of storing your car
• The cost of a rental car while your car is repaired
• The amount that can be recuperated by selling your car to a salvage yard

Once the car is deemed a total loss, the insurance company will pay you the Actual Cash Value of your car, minus your deductible (assuming you have sufficient coverage through your insurance policy or the at-fault driver's insurance policy). Then the insurance company will recoup whatever money it can by selling your car to a salvage yard for spare parts. The insurance company gets to keep the money it gets for selling your totaled car.

What if you want to keep your car and pay for the repairs yourself? You may be able to do so, depending on how your auto insurance policy is written. If you want to keep your car, ask the adjuster what you can do. Insurance companies typically make some attempt to keep their customers happy, so it is possible that you can work out a deal in which the insurance company pays you cash value, minus the deductible and any money the insurance would have received from the salvage yard.

What if you disagree with what the insurance company calls the Actual Cash Value of your car? You can pay for your own inspection and appraisal of the car from a dealership, body shop, or other person with expertise and then submit your appraisal to the insurance company. This may help you negotiate a higher value for your car.

Another negotiation tool you can use in getting the most for your totaled car is to speak to your insurance company and the at-fault driver's insurance company. (Do not tell either insurance company about your comparison quote shopping, however, so that they do not influence each other.) Let's say your insurance company is willing to give you $6,000 and the other insurance company will give you $7,000. You will be better off taking the second quote. If the accident was not your fault, remember that the deductable on your property damage is something that you will get back within 6 months or so after your insurance company settles the claim it has against the at fault driver's insurance.

Finally, an unfortunate fact about how auto insurance works is that, if the actual cash value is less than the amount you owe on a car loan, you still will be responsible for paying off the car loan. The only way to avoid this calamity is to get gap insurance with your car insurance. Gap insurance will pay off the remainder of your car loan if you owe more than the car is worth and the car is totaled in an accident.

Tampa auto accidents lawyer Dale Appell, P.A. assists residents of the greater Tampa Bay, Florida and beyond with their insurance claims after car accidents with serious injuries. Please call or e-mail us for a free assessment of your case if you are in west central Florida including Temple Terrace, Riverview, St Petersburg, Tampa, Hernando, Hillsborough, Tarpon Springs, Odessa, Pinellas Park, Hudson, and Clearwater.