While it may not be your primary concern, wondering what happens after your car is totaled in an accident is a natural inquiry. Cars are more expensive now than ever, and at the forefront of your mind might be what you will do if your car is totaled, but you are not at fault for the wreck. Many questions can arise.
This blog discusses all you need to know about what happens when a car is totaled in North Carolina. Call our North Carolina car accident lawyers today.
What Determines If a Car Is Totaled After an Accident?
First and foremost, what determines if a car is totaled after an accident might come as a surprise. Your car does not have to be completely smashed or damaged to be totaled. It is totaled if the damage is so severe that the total repair cost is equal to or greater than 75% of the actual cash value (ACV). In other words, a totaled car is one that is so damaged that it has no value and will cost more to repair than it is worth.
Determining an accurate and fair ACV is vital because the higher the value, the more money you will receive toward a new car. ACV is typically based on the local market value, and insurance companies often look to the Kelley Blue Book or similar databases to determine what your pre-accident car would have sold for in the region. Remember, the higher the ACV, the more the insurance company has to pay out, so calculating the lowest ACV possible is in their best interest.
Therefore, do not necessarily take the first offer the insurer makes you. You can challenge the ACV if you believe you deserve more. You can present evidence to the insurer to counter their ACV offer by doing simple research to determine the local market.
Fault vs. No-Fault
North Carolina has a fault insurance system, meaning the driver deemed at fault for the accident is responsible for paying for damages. If your car is totaled but you were not at fault, the at-fault driver’s insurance should pay the ACV for your vehicle, with no deductible assessed.
If your car is totaled but you were at fault, your insurance carrier will pay your ACV less your applicable deductible.
What Happens to Your Car After an Accident?
The time between the accident and determining whether the car is totaled can be days or weeks. So, what happens to your car after an accident?
Remain at the Scene
Immediately after the crash, your car must remain at the scene until a police officer responds. While you and your car must stay at the scene, if it is dangerously obstructing traffic and you can safely move it to the shoulder or off to the side, you should always do so.
Tow
Once the police respond, investigate, and write a report, you will likely need to have it towed to a nearby repair shop or a salvage yard if it is undrivable. Once there, an insurance adjuster will evaluate the damage, estimate the cost of the damage, and determine how to proceed.
Storage
You may be responsible for storage fees depending on where your car is towed. This is most common if your car ends up in a salvage yard or impound lot. Your insurance company may pay your storage fees for a certain number of days. You will need to check your policy documents or ask the insurance adjuster.
Repair or Reimburse
Once the insurance adjuster has reviewed the damage, they will determine whether the car is repairable or should be deemed a total loss. They will either agree to pay for repairs or write you a check for the car’s ACV.
If you believe they are offering less than the car is worth, you can challenge their assessment of the ACV.
North Carolina Car Accident Lawyer
At Mehta & McConnell, PLLC, we have over 30 years of combined experience representing auto accident victims after a severe crash. Let us advocate for you if you have been injured and sustained substantial property damage. Contact us today for a free case assessment and learn how we can help.