What To Do If Your Vehicle Is Totaled in Texas

You have probably heard the word “totaled” as it relates to vehicle damage, but do you know what this term really means – and what it could mean for your car accident claim? An experienced San Antonio car accident attorney can help walk you through this process and fight for a fair evaluation.

What Is a Total Loss?

Broadly, a vehicle is considered a total loss when the cost of repairing it exceeds its value. The value of a vehicle is based on the actual cash value, explained below. If your vehicle is considered a total loss, the insurance company pays for the actual cash value, rather than the anticipated repair costs.

Once a vehicle is considered totaled, the insurance company can take ownership of it and sell it for salvage or parts. While some states use a fixed percentage, such as 80% or 90% of the vehicle’s value, Texas uses a 100% threshold in its total loss formula. If the combined repair costs and salvage value are 100% or more than the vehicle’s actual cash value, it is considered a total loss. Generally, the insurance adjuster makes an official decision whether a vehicle is considered total or not.

How a Vehicle’s Actual Cash Value Is Calculated

The actual cash value is the vehicle’s fair market value immediately before the accident. Car accidents can severely negatively impact a vehicle’s value, so it’s crucial to have a good understanding of the vehicle’s estimated worth immediately before an accident happened. 

Various factors affect the actual cash value of a vehicle, such as:

• The vehicle’s make, model, and year
• Mileage
• Overall condition of the vehicle
• Depreciation due to the age of the vehicle or prior accidents
• Optional equipment or upgrades in the vehicle
• Comparable sales of similar vehicles in the area

What If I Disagree with the Insurance Company’s Estimate on My Vehicle’s Value?

Insurance companies often use individualized valuation systems, so one company can calculate one value for a vehicle, and another can calculate another. If you think your vehicle is worth more than what the insurance company is offering, the Texas Department of Insurance recommends doing the following:

• Get quotes from used car dealers about the estimated value of your car
• Check prices online
• Look for local ads for similar vehicles
• Document any special features or custom parts your vehicle has

You can try to negotiate for a higher value that reflects these factors.

What If You Have a Car Loan?

If you have financed your vehicle, the insurance company pays the lender before it pays you any remaining money. If you owe more on the vehicle than the insurance company pays, you are responsible for paying the remaining balance unless you have GAP insurance, which covers the difference.

Contact The Aguirre Law Firm for a Free Consultation for Legal Assistance

If you would like help negotiating the actual cash value of your vehicle or other aspects of your car accident claim, The Aguirre Law Firm can help. Contact us today for a free case review.