No one goes about their day expecting to be involved in a car crash. Even with strict traffic laws in place, these tragic accidents still happen all the time. If you have been involved in one and your car has been damaged, it is crucial to get the guidance you need that can help protect your rights. Here is what you need to know:
How is a car totaled in California?
The state follows a “Total Loss Formula” to determine whether a damaged car is still salvageable. To start the process, your insurer will require you to have your car towed to an approved auto shop and have its mechanic determine your car’s condition.
If your car’s repair costs and salvage value exceed its actual cash value (ACV), it will be considered as totaled. In this situation, your insurer will offer to pay you for your car’s ACV, minus your deductible.
Can I reject my insurer’s settlement offer?
Yes. You may reject your insurance company’s first offer if you believe that your car’s ACV is lower than what you would expect to receive. You can dispute their offer by hiring your own appraiser or seeking a car accident attorney’s guidance in the matter.
Depending on the appraisal results you present, your insurer may increase its settlement amount — especially if you have compelling evidence that proves why your car is worth more than what they initially offered you.
What will happen after I accept their settlement?
If you accept your insurer’s settlement, they will apply for a nonrepairable vehicle certificate on your behalf and surrender your car’s license plate/s to the state’s Department of Motor Vehicles (DMV) within 10 days from the date of settlement.
You are in control of what’s ahead
Although it is unfortunate that you may have lost your car, you can still protect your rights by learning about the process and ensuring that your insurance company’s settlement is worth what you truly deserve to receive.