Your Options After a Total Loss in a Car Accident
When your vehicle is declared a total loss following a car accident, it means the cost to repair your car exceeds its actual value. Insurance companies calculate this not only based on repair costs but also consider factors like rental car expenses while your car is out of service and the potential salvage value of your vehicle.
Agreeing with the Insurer
If you accept the insurance company’s total loss assessment and the payout amount, the process is straightforward. You’ll sign over your car’s title to the insurer, who will typically pay off any lienholder first. If the payout exceeds what you owe on the vehicle, the remaining funds go to you.
In some situations, you may choose to keep your vehicle through a process called owner retained salvage. Here, the insurance company deducts what it could sell the car for as salvage from your claim payment. Texas law requires proper notification to the state, and there are specific steps your car must meet before it can be legally driven again. Keep in mind, a salvage title reduces your car’s resale value and may make it harder to insure.
Disagreeing with the Vehicle’s Value
If you believe the insurer undervalued your car, you have several options:
Negotiate – Ask how the company determined your car’s value. Check that all relevant details like mileage, condition, and features were accurately considered.
Provide Documentation – Submit receipts for recent upgrades, custom parts, or maintenance. While insurers may not pay for all enhancements, some improvements (like a rebuilt engine) can add value.
Get Independent Quotes – Compare prices from used car dealers or online listings to support your claim.
If negotiations fail, you can request to speak with a claims supervisor or seek an appraisal. You can also file a complaint with the Texas Department of Insurance (TDI) if you feel the company has treated you unfairly.
Disagreeing with the Total Loss Determination
In some cases, you may want to repair your car instead of accepting a total loss. Let the insurer know immediately if repairs are feasible. Remember:
Repair estimates are preliminary, and additional damage may be discovered during the process.
If repair costs exceed the insurance payout, you are responsible for the difference.
Cars with salvage titles are worth less and may be difficult to sell or insure.
Just like with a total loss, the insurer must notify the state if you retain your vehicle, and Texas law dictates the necessary steps to make the car roadworthy.
Legal Guidance is Crucial
Total loss situations can be complicated, especially if you disagree with the insurer’s valuation or decision. Hiring a personal injury attorney can help protect your rights, ensure accurate compensation, and guide you through negotiations, appraisals, or filing a lawsuit if necessary. Attorneys can also make sure all state requirements are met if you choose to retain your car after a total loss.
