After your Colorado car accident, one of the most frustrating things you will likely have to handle will be dealing with the insurance company. Waiting to speak to insurance agents, scheduling and attending estimates on your vehicle, discovering where to have your vehicle looked at, determining how much damage was done and the costs of repairs, finding out if the insurance company will pay for the damage are all tedious, time consuming and taxing questions you will want answered. Even if you do not have medical bills and doctor visits to deal with, you will need to determine how much property damage has been done and what it will take to get back on the road quickly and safely. If your car accident caused what appears to be extensive damage to your vehicle, you may be wondering if your car was “totaled,” or if the insurance company will consider it a total loss.
Most people think that if the actual cash value of their vehicle is deemed to be less than the costs to repair their car, then the car will be considered totaled or a total loss. However, this is not always accurate. Other factors aside from actual cash value and costs of repairs come in to play when deciding whether a car is totaled, and every insurance company has their own set of criteria and each state has different regulations. In Colorado, the threshold for deeming your car a total loss is strict – 100%. Moreover, there is not one set formula in the insurance industry for computing actual cash value of your vehicle.
In Colorado, most insurance companies utilize a Total Loss Formula (TLF) when determining if your vehicle has been totaled. According to this method, the salvage value of your vehicle will be added to the costs of repairing your vehicle. This amount is then compared to the actual cash value of your car, and if the salvage/repair sum is greater than or equal to the actual cash value, most insurance companies will deem your vehicle a total loss. Unfortunately, only qualified insurance appraisers who work for the insurance company are authorized to make this determination.
In the event your car is considered a total loss, the insurance company will typically pay you the actual cash value of your car at the time the accident occurred, minus the amount of your insurance deductible. And depending on how old your car was at the time of your accident, some insurance companies will replace “newer” vehicles (usually 4-6 months or newer) with brand new cars of the same make and model.
If you have been injured in any type of car accident, you need a personal injury attorney to review your case and determine which parties may be at fault. The personal injury attorneys at the Law Office of Jeremy Rosenthal have decades of experience representing those injured in all sorts of auto accident and other personal injury cases. We will fight to get you the compensation you deserve.
Call us today for a free consultation at (303) 825 – 2223 or visit us online.