Wrecked Cars and the Insurance Company

Sarah Mallas Wayman

What You Should Know


By Sarah Mallas Wayman

Automobile collisions are part of the American experience and losses are often just damage to the car that do not include personal injuries. These are some important considerations you will find helpful if your automobile is seriously damaged.
If your car is beyond repair, it is totaled. The insurance carrier will declare this as a total loss if:
-Damage to the car is catastrophic and it can't be repaired safely,
-The cost of repair exceeds the value of the car itself; or
-The amount of damage is severe enough that Georgia insurance regulations require the car to be declared a total loss.

As a rule, the insurance claims adjuster will arrange inspection and inform you if the car is a total loss. Be sure to remove your personal items from the car.

If your policy covers a total loss, the insurance company will pay the actual cash value of your automobile less any deductible, then take ownership and sell the vehicle to a salvage company.

Your car may have already paid it off and be free of monthly car payments. However, you will only get the value of your car based on a comparison of sale prices of similar vehicles in your local area, taking into account the pre-accident condition of the car, including mileage and any damage not caused by the accident. Make sure to negotiate with the insurance for more. Remember, insurance companies are in the business of paying you as little as possible.

Payment for total loss depends on several factors:
If you own the vehicle, you will get paid.
If you lease, the leasing company gets paid.
If the vehicle is financed, the bank or finance company gets paid and if the settlement amount exceeds what you owe, you will receive the balance.
If the settlement amount is less than what you owe, you'll be responsible for paying the remaining loan balance.

If you have rental coverage, then ask your insurance company to pay for a rental vehicle after your accident. Typically, they will offer only 4-7 days.

It helps to have the advice and counsel of a good lawyer. If you need any help, contact me for an appointment.

Sincerely,

Sarah Mallas Wayman
7500 Hunters Woods Drive
Atlanta, GA 30350
(770) 804.8484
smwlaw@bellsouth.net