Claiming Damages for a Totaled Car After an Accident
If an accident resulted in damage to your car exceeding the vehicle’s worth, your vehicle is considered too damaged to fix. In this situation, your insurance company will offer your car’s actual cash value (ACV). The ACV is the value of your vehicle right before the accident occurred, not the purchase price.
Insurance companies will calculate ACV by determining the cost to replace the car minus the vehicle’s depreciated value. If you believe that the insurance company is not offering you a fair ACV, do not hesitate to contact our auto accident lawyers in Charleston, SC, at your earliest convenience.
When is a Car Considered Totaled in Charleston, SC?
Each state sets its threshold for defining a vehicle as a total loss. In South Carolina, any vehicle that is considered a 75% loss or more of its fair market value is deemed totaled. However, an insurance company may set a different threshold for when it considers a vehicle to be totaled.
For example, under state law, a vehicle worth $20,000 is considered totaled if it has $15,000 or more in repair costs. However, your insurance company may deem your vehicle totaled if damages are 60% of the ACV. So, if your car has $12,000 in repair costs, your insurer will declare the vehicle a total loss and pay you, its ACV.
Insurance Coverage Options in Charleston, SC
Given the circumstances of the damage to your vehicle, you may be able to file a total loss claim under any of the following types of coverage:
Property Damage Liability
South Carolina requires each driver to carry at least $25,000 of property damage coverage per accident. You can file a total loss claim under their insurance if the other driver is at fault.
Uninsured Motorist Coverage
If the other driver does not have insurance, you can file a claim under your uninsured motorist (UM) coverage. South Carolina law requires all drivers to carry this type of insurance, with coverage limits being the same as your liability insurance.
Collision Coverage
You may file a claim under your collision coverage if your car collided with another vehicle, a tree, or a stationary object. Collision coverage is not required by law, but may be required by your lender.
Comprehensive Coverage
Suppose your vehicle was damaged for any other reason, including natural weather events, fire, vandalism, theft, or falling objects. In that case, you can file a total loss claim under your comprehensive coverage. Comprehensive coverage will also cover the cost of replacing your windshield, with insurance companies prohibited from imposing a deductible for windshield repairs or replacement. Although comprehensive coverage is not required by law, it may be required by your lender.
GAP Coverage
GAP insurance is an acronym for Guaranteed Auto Protection. If your car is totaled, GAP insurance will pay out the difference between your settlement and what you still owe on the car. For example, if your insurance company pays out $15,000, but you still owe $17,500, GAP insurance will cover the remaining $2,500. GAP insurance is optional but highly recommended if you have an auto loan.
Bodily Injury Claim
If you suffered any injuries, you must file a separate bodily injury claim. If the other driver is insured and responsible for the collision, you can file a bodily injury claim under their liability insurance. South Carolina requires drivers to carry a minimum of $25,000 of bodily injury coverage per person and $50,000 of bodily injury per accident.
You can always file a UM claim if the other driver does not have insurance. Another option could be filing a MedPay claim, which would cover medical expenses for you and your passengers. This applies regardless of fault. Unlike UM coverage, MedPay coverage is optional.
Speak with Our Auto Accident Attorneys Today
A car accident can happen quickly, throwing your life into chaos. At John Price Law Firm, we understand the stress a car accident can have on someone, especially if your vehicle is a total loss. If you have recently fallen victim to a crash in which your vehicle repairs exceeded the cash value of your car, our auto accident lawyers in Charleston want to hear from you. To schedule your free consultation, contact us online or call today.