What Happens When Your Car Is Totaled in a Car Accident?

If you have been involved in a car accident in Indiana, and your car has been deemed a total loss, you may have many questions about the next steps. In Indiana, a car is considered “totaled” when the repair cost exceeds 70% of its actual cash value (ACV) before the accident. Insurance companies often refer to this as a “total loss.” The ACV is the car’s market value at the time of the accident, taking depreciation into account.

After an accident, your insurance company will evaluate your car to determine its ACV. This is based on the car’s make, model, age, mileage, and condition before the accident. Once the ACV is determined, they will compare it to the estimated repair costs to decide whether the car is a total loss.

If you disagree with the insurance company’s assessment, you can present your own research or hire a third-party appraiser to argue for a higher value.

What Happens After My Car Is Deemed a Total Loss?

Once your car is declared a total loss, your insurance company will pay you the vehicle’s ACV minus any deductible. If you have a loan on the car, the insurance payout will go to your lender first. If the amount paid by insurance is less than what you owe on your loan, you will still be responsible for paying the remaining balance. However, if you have gap insurance, it may cover the difference between the car’s ACV and the remaining loan balance.

If you own the car outright, the insurance company will pay you directly.

Can I Keep My Totaled Car in Indiana?

In some cases, you may be allowed to keep your totaled car, which will likely reduce the insurance payout. If you decide to keep the car, the insurer will deduct the vehicle’s salvage value from the settlement. You will also be responsible for obtaining a salvage title from the Indiana Bureau of Motor Vehicles (BMV). With a salvage title, the car can only be driven again if it is repaired and passes an inspection to be rebranded with a rebuilt title.

What Are My Options if My Car Is Totaled in a Car Accident?

If your car is totaled, you have a few options:

• Accept the Insurance Settlement: You can take the insurance payout based on your car’s ACV. You can use this money to buy a new car or pay off any remaining balance on a loan.
• Negotiate the Payout: If you believe the insurance company’s offer is too low, you can negotiate. Present evidence, such as recent sales of similar vehicles, to support your case for a higher settlement.
• Keep the Vehicle: To retain ownership of the totaled vehicle, you can accept a reduced payout and get a salvage title.

What Should I Do if I Was Not at Fault for the Accident?

If another driver was at fault for the accident that totaled your car, you could file a claim with their insurance company. Indiana is an at-fault state, meaning the responsible party’s insurance should cover your losses. However, the process may take longer as liability must be determined. Sometimes, you may need to pursue legal action if you believe the other party’s insurance is not offering fair compensation.

Do I Need an Attorney if My Car Is Totaled?

While not always necessary, hiring an attorney can be helpful, especially if you are facing disputes with your insurance company or the at-fault driver’s insurer. An attorney can ensure you receive fair compensation and help navigate complicated insurance claims, especially in cases of underpayment or disagreements over fault.

The Elkhart Car Accident Lawyers at Wilson & Kinsman, LLC Will Help You After a Crash

At Wilson & Kinsman, LLC, our experienced Elkhart car accident lawyers are here to help after a crash. We can assist you with navigating the insurance process and legal challenges. Call us at 574-522-1900 or contact us online to schedule a free consultation and learn how we can support you after your car is totaled in an accident. Located in Elkhart, South Bend, and St. Joseph County, Indiana, we serve clients in Goshen, Mishawaka, Granger, Osceola, Bristol, and La Porte.