Total Loss Threshold for Texas
After a major accident, your vehicle may be damaged beyond repair. Your vehicle may be considered totaled, or a total loss.
In Texas, a vehicle is considered a total loss when the cost to repair it equals or exceeds 100% of its actual cash value (ACV). This means that if repairing your car would cost as much as or more than its pre-accident market value, the insurance company can declare it a total loss.
Texas uses the following formula to determine if a vehicle is a total loss:
Cost of Repairs + Salvage Value ≥ Actual Cash Value (ACV)
If this equation holds true, the vehicle is typically deemed a total loss. The actual cash value of your vehicle depends on the condition of your vehicle right before the accident. It is based on the retail value of your vehicle according to the National Automobile Dealers Association (NADA) guide or Kelley Blue Book.
Sounds fair enough, but keep in mind that the goal of the insurance company is to pay out as little compensation as possible. Many will give you a lowball offer by declaring your vehicle a total loss when it is not damaged beyond repair.
Because of this, it’s a good idea to understand the process. The insurance company will send out an adjuster to inspect your vehicle. The adjuster will evaluate the damage based on the following factors:
- Your vehicle’s make and model
- The age of your vehicle
- The mileage on your vehicle
- The general condition of your vehicle before the crash
- Any optional equipment your vehicle has
To qualify for a total loss settlement, there must be insurance coverage. The following coverages may apply:
- Comprehensive coverage. This applies to damage from vandalism or a weather-related accident.
- Collision coverage. This applies to an accident for which you are at fault.
- Liability coverage. This applies to an accident where another driver was liable.
- Uninsured or underinsured coverage. This applies to an accident where the at-fault driver does not have adequate coverage
Options After a Total Loss Declaration
After a major accident, you have three options for a total loss declaration:
- Accept the settlement. You can accept the insurer’s payout, which is usually the ACV minus any deductible.
- Dispute the valuation. If you believe the valuation is too low, you have the right to negotiate. Provide evidence such as dealer quotes or an independent appraisal to support your claim.
- Retain the vehicle. You may keep your totaled car. In this case, the insurance company will deduct the vehicle’s salvage value from your settlement. Note that the car will receive a salvage title, which can affect its resale value and ability to be insured.
Contact a Personal Injury Lawyer
After a major accident, you want to ensure your insurance company gives you a fair valuation of your vehicle.
You should never negotiate with the insurance company without the assistance of a professional. A Houston car accident attorney from The West Law Office, PLLC can help you gather evidence. Fill out the online form or call (281) 347-3247 to schedule a consultation.
Source:
totallossappraisals.com/total-loss-threshold-50-states/texas/