How Do Insurance Companies Value Totaled Cars in Philadelphia?
Learning how insurance companies value totaled cars, and how they determine whether or not a vehicle is totaled, is important. Otherwise, victims in Philadelphia might accept a settlement that’s not reflective of their property damage or injuries.
While insurance companies might pay car accident victims in Philadelphia the fair market value of their totaled vehicles, that doesn’t always happen. Insurance companies might not account for improvements you’ve made to your vehicle and might make deductions for previous damage when offering a settlement. Depending on the outcome of the total loss formula, your insurance company might not consider your car totaled and offer you a lesser settlement. Because dealing with insurance companies does not often yield satisfactory results for victims in Philadelphia, our attorneys can help victims file a lawsuit to recover the compensation they deserve for property damage and injuries.
For a free and confidential case evaluation with the Philadelphia car accident lawyers at The Reiff Law Firm, call today at (215) 709-6940.
How Do Insurance Companies Value Totaled Cars in Philadelphia?
When your vehicle is totaled in a car accident in Philadelphia, recovering compensation for property damage from your insurance company might be challenging. Certain things might allow an insurance company to reduce the settlement for your totaled vehicle, which might result in lesser compensation.
Suppose your car was recently totaled because of a negligent driver in Philadelphia, and that you filed a claim with your personal injury protection insurance or a negligent driver’s liability insurance. While you should be reimbursed for the actual cash value of your car, some things might get in the way.
For example, if you financed your car, you might not receive compensation for payments you’ve made or have yet to pay, lowering your settlement. Insurance companies might not consider any improvements you’ve made to your vehicle after purchasing it that increased its value. Car owners might add new tires, improved sound systems, or other features to their vehicles. Suppose your car was totaled in an accident in Philadelphia. In that case, an insurance company might offer your vehicle’s fair market value without including compensation for any improvements you made after purchasing.
Insurance companies might also make deductions from a vehicle’s fair market value for previous damage. It is important to carefully review an insurance company’s offer to catch any deductions to the fair market value that result in a lesser settlement. Because our West Chester car accident lawyers don’t settle, we can help you recover the compensation you deserve for property damage to your vehicle in a lawsuit against a negligent party.
How Do Philadelphia Insurance Companies Determine if a Car is Totaled?
Dealing with insurance companies after a car accident in Philadelphia can be complicated and result in an unsatisfactory settlement for victims, which is why our attorneys don’t settle. Although insurance companies use a formula to determine whether or not a car is totaled in Philadelphia, you might disagree with the result.
Pennsylvania insurance companies, including those in Philadelphia, use the total loss formula to determine whether or not a car is totaled after an accident. This requires an insurance company to evaluate the resale value of a car before an accident against the cost of repairs and scrap value of a vehicle after an accident. If the two cancel one another out, or the cost of repairs and scrap value of a car is greater than that of the initial resale value, the car will likely be considered totaled.
For example, suppose the resale value of your car before it was damaged in an accident was $20,000. Then, suppose the total cost of repairs after an accident was $15,000, and the salvage value was $6,000. An insurance company will subtract the total cost of repairs and the salvage value from the previous resale value, which in this case, would leave a deficit of $1,000. So, your car would be considered totaled.
While this seems pretty straightforward, it might not work in your favor, depending on the damage done to your vehicle. While you might think your car is totaled just by looking at it, an insurance company might disagree based on the total loss formula. Our Philadelphia personal injury lawyers can analyze a settlement offer from your insurance company to identify an incorrect assessment of your damaged vehicle.
Recovering Compensation After a Philadelphia Accident that Totaled Your Car
If your car was totaled or nearly totaled in an accident in Philadelphia, you will likely also be injured. Instead of trying to recover compensation for damage to your vehicle in an insurance claim, turn to our attorneys for help filing a lawsuit against a negligent driver.
While you might get some compensation from an insurance company for property damage after your car was totaled, you may not recover the appropriate compensation for other economic and non-economic damages. Victims whose cars are totaled in Philadelphia often sustain injuries that impact their lives financially and emotionally. In an insurance settlement, victims may not be properly compensated for all damages incurred because of a negligent driver.
That is why our Allentown car accident lawyers advise victims to sue instead of settle. Our attorneys can help you build a strong case against a negligent driver to recover compensation for damages to your vehicle and your person. Because Pennsylvania is a no-fault state, victims can only sue negligent drivers when their injuries are severe enough.
Suppose your insurance company denies your claim, refuses to pay you what you deserve for your totaled vehicle and injuries and acts in bad faith or in breach of contract in the process. In that case, our attorneys can help you file a lawsuit against your insurance company to recover the amount you’re entitled to.
Call Our Car Accident Lawyers in Philadelphia Today
For a free and confidential case evaluation with the Delaware County personal injury lawyers at The Reiff Law Firm, call today at (215) 709-6940.