When Your Car Is A "Total Loss"

After a car accident, we understand the desire to get things handled so you can move on with your life. One of the things you may have to deal with is getting your car fixed, or getting a new car. You may hear from the insurance company that your car is a “total loss.” But what does it mean when your car is considered a total loss?

Standard for Determining “Total Loss”

The standard for determining whether a vehicle is declared a total loss (or “totaled”), is by the State of Florida, not the insurance companies. Under Florida law, if repairs exceed 80% of the actual cash value of the vehicle, then it can be declared a total loss.S 319.30(3)(a)(2) Fla. Stat. (2016).

Examples of Total Loss

Essentially, in Florida a car is considered totaled when the cost to repair it will cost more than 80% of the fair market value of the car. Consider the following examples:

• A car that will cost $4,100 to fix after an accident, and is worth $5,000, is considered a total loss, or totaled. In this case, the cost to fix the car is more than 80% of the car’s value.
• A car that will cost $2,500 to fix after an accident, and is worth $5,000, is not considered a total loss. In this case, the cost to fix the car is less than 80% of the car’s value. Pursuant to the specific terms of the policy, the insurance company would likely pay to fix the car.

In cases where the vehicle is deemed a total loss, the insurance company will not pay to fix the car. In Florida the insurance company may elect to pay a cash settlement based upon the actual cost to purchase a comparable vehicle, or may elect to offer a comparable replacement vehicle. S 626.9743 Fla. Stat. (2016).

Recovery For Damage To Your Vehicle

The attorneys at Draper Law Office can help you in the recovery of property damage to your vehicle, as well as for medical bills, lost wages, and other related expenses. In the case of serious injury, you may also be entitled to damages for pain and suffering, physical impairment, scarring, disfigurement, and diminished capacity for the enjoyment of life.

Contact us today to find out exactly what you are entitled to after a motor vehicle accident in the Central Florida area. The consultation is free and we do not get paid unless we make a recovery in your case. Our offices are conveniently located in Orlando, and Kissimmee to better serve you.