One of the most frustrating calls people receive after a car accident is hearing the insurance
company say their vehicle is a “total loss.”
Many people assume that means the vehicle is completely destroyed, but that is not always the
case.
In Louisiana, a vehicle may be considered a total loss when the cost to repair it reaches 75% or
more of the vehicle’s market value. Even damage that looks repairable can sometimes result in a
total loss determination, especially with older vehicles or vehicles that already have high
mileage.
When a vehicle is declared a total loss, the insurance company will typically owe the “actual
cash value” (ACV) of the vehicle.
This does not always match the Kelley Blue Book value people find online. Instead, insurance
companies often look at comparable vehicles being sold in the area and calculate an average
market value. They may also reduce the value based on prior damage or the overall condition of
the vehicle before the accident.
The insurance company should also include applicable sales tax and license fees in the settlement
offer.
If you recently put money into your vehicle, it is important to provide receipts and
documentation. Things like new tires, a replacement engine, major repairs, or a new battery may
help support a higher vehicle value.
If there is a loan on the vehicle, the insurance company will usually pay the lienholder directly
first. If there is money remaining after the loan is paid off, you should receive the difference.
Unfortunately, many people discover they owe more on the vehicle than the insurance company
is willing to pay. In those situations, GAP insurance may help cover the remaining balance. GAP
coverage is commonly purchased when financing a vehicle and is designed to cover the
difference between what is owed and the vehicle’s actual cash value.
In some situations, yes.
If you want to keep the vehicle instead of turning it over to the insurance company, you may be
able to accept a reduced settlement amount and retain the car. The amount deducted is often
referred to as the “salvage value.”
However, there are important things to understand before making that decision. A vehicle
declared a total loss will usually require a salvage title through the Louisiana DMV, even if it is
repaired and returned to the road. That process can become complicated and may affect the
future resale value of the vehicle.
At Flattmann Law, we regularly help people navigate insurance issues after serious car accidents,
including disputes involving total loss vehicles and insurance settlements.
If you have questions after a wreck or feel the insurance company is not treating you fairly,
contact Flattmann Law today for a free and confidential consultation.
We represent clients throughout St. Tammany Parish, Tangipahoa Parish, Washington Parish,
and communities across the Northshore including Covington, Mandeville, Slidell, Hammond,
Madisonville, and the New Orleans metro area.
Call (985) 590-6182 today.
When you ask for Grady, you get Grady. At Flattmann Law, we make sure that your consultations and cases are not assigned to a junior associate. Grady will personally be on the phone with you or meet you in person to discuss your individual situation. We will represent you not only as your attorney, but also as your neighbor.
Our legal library is full of articles on a variety of topics related to personal injury claims in Louisiana. Learn about how accidents happen, what to do when you are a victim, and how an attorney can help you fight for the compensation you may deserve.
