Getting into a car accident is stressful, but finding out your vehicle is totaled can worsen things. Suddenly, you are dealing with insurance headaches, potential financial loss, and the hassle of finding a replacement.
If you don’t understand how insurers determine a total loss, you could end up accepting a payout that doesn’t cover your needs.
A knowledgeable car accident lawyer can help you challenge unfair insurance decisions, negotiate for a better settlement, and ensure you receive the compensation you deserve.
This article explores a common question: When is a car considered totaled?
Key Takeaways:
- A vehicle is deemed “totaled” when repair costs exceed its actual cash value (ACV) or it’s damaged beyond safe repair.
- In Nevada, a car is typically considered a total loss if repair costs exceed 65% of its ACV.
- Insurers assess damage, repair costs, and ACV to determine if a vehicle meets the total loss criteria.
- Certain repair costs, like painting and electronic part replacements, are excluded from total loss calculations. Vehicles over 10 years old needing only bolt-on parts may also be exceptions.
- Policyholders can dispute unfair settlements by providing evidence of their vehicle’s true value, such as recent repairs or comparable sales.
What Does “Totaled” Mean?
A car is considered “totaled” when the cost to repair it exceeds its actual cash value (ACV) or when it’s damaged beyond safe repair. Insurance companies determine a total loss by comparing repair costs to the vehicle’s worth before the accident.
In Nevada, a car is typically deemed a total loss if repairs exceed 65% of its ACV. Once totaled, the vehicle is usually issued a salvage title, meaning it cannot be driven without significant repairs and re-inspection.
Factors Considered in Determining a Total Loss
Insurance companies evaluate several factors to decide if a car is totaled. These key considerations determine whether repairing the vehicle is financially practical.
Repair Costs vs. Value
A car is declared a total loss if the estimated repair costs exceed a certain percentage of its actual cash value (ACV) before the accident. If fixing the vehicle is more expensive than it is worth, the insurer will likely total it.
State-Specific Laws and Thresholds
Each state sets its total loss threshold. A car is considered totaled in Nevada if repair costs exceed 65% of its ACV. This means even moderate damage can result in a total loss determination.
Salvage Value
The salvage value is what the damaged vehicle is worth after an accident. The car is totaled if the salvage value plus repair costs exceed the ACV. A totaled vehicle typically receives a salvage title, restricting its use until proper repairs and inspections are completed.
The Role of Insurance Companies
Insurance companies play a key role in determining whether a car is considered totaled after an accident. Once a claim is filed, the insurer assesses the vehicle’s damage, repair costs, and actual cash value (ACV) to decide if it meets the total loss threshold.
If the car is totaled, the insurer typically offers a settlement based on the ACV minus any deductible. However, these offers may be lower than expected, as insurers often use market data and depreciation to calculate value.
Policyholders can challenge an unfair settlement by providing evidence of their vehicle’s true worth, such as recent repairs, custom features, or comparable sales. A lawyer can help negotiate with the insurance company to ensure fair compensation.
Exceptions to the Law
Nevada’s total loss laws have several exceptions that may prevent a vehicle from being declared totaled, even if repair costs seem high.
For example, certain repair costs are excluded from the total loss calculation, such as:
- Painting any part of the vehicle.
- Replacing electronic parts per manufacturer specifications.
- Towing expenses.
Additionally, vehicles 10 or older are not considered totaled if they only require bolt-on parts like the hood, trunk lid, fender, doors, or grille assembly. This means an older car needing a trunk replacement wouldn’t be totaled, even if repairs exceed 65% of its value.
Understanding these exceptions can help drivers challenge incorrect total loss determinations and seek a fair outcome from their insurance provider.
Making a Total Loss Vehicle Claim
Filing a total loss claim involves several steps, beginning with an insurance adjuster assessing the damage. After you report the accident, the insurer will send an adjuster to inspect the vehicle and determine its fair market value before the crash.
The adjuster may also request you take the car to an approved body shop for a repair estimate. The vehicle will be declared totaled if repair costs exceed Nevada’s 65% total loss threshold.
Once a total loss is confirmed, the insurance company will offer a settlement check based on the car’s actual cash value (ACV). In most cases, the insurer will take possession of the vehicle unless you repurchase it with a salvage title.
Keeping a Totaled Vehicle
If you keep your totaled vehicle, your insurance payout will be reduced. Instead of receiving the entire actual cash value (ACV), the insurer will deduct:
- Your policy deductible.
- The estimated salvage value, or what the car could sell for at a salvage yard.
For example, if your car’s ACV is $12,000, but your deductible is $2,000, and the salvage value is $1,000, you would receive $9,000 instead of $10,000.
You can use the money to repair the vehicle or sell it yourself. However, repairing a totaled car can be risky– hidden damage may lead to unexpected repair costs. If the vehicle has frame damage or corrosion, fixing it could be more expensive than it’s worth.
Paying to Fix a Vehicle: What Insurance Do You Use?
If your car is damaged in an accident, the type of insurance that covers repairs depends on who is at fault and what coverage you have.
If another driver caused the crash, their liability insurance should cover your vehicle repairs. Nevada law requires all drivers to carry at least $20,000 in property damage coverage, which pays for damage to another person’s car.
If you were at fault or another driver did not cause the accident, collision insurance can help cover repairs. This no-fault coverage applies regardless of who caused the crash. Comprehensive insurance, on the other hand, covers non-collision damage, such as vandalism or storm damage.
In Nevada, collision and comprehensive insurance are optional, but if you have a car loan, your lender may require you to carry both until the loan is paid off.
What to Do if You Disagree With a Total Loss Assessment
If you believe your car was unfairly declared totaled or that the insurance payout is too low, you have options to challenge the decision:
- Review the insurer’s valuation: Request a detailed breakdown of how they determined your car’s value and compare it with market prices.
- Gather independent estimates: Get an appraisal from a trusted mechanic or auto body shop to see if repair costs are lower than the insurer claimed.
- Check comparable vehicle listings: Look up similar make, model, year, and condition vehicles for sale in your area to prove your car’s higher value.
- Negotiate with your insurer: Present your evidence and request a reassessment.
- Consult a lawyer: If the insurer refuses to reconsider, an experienced attorney can help fight for a fair settlement.
Need Legal Assistance?
If your car has been declared totaled and you face challenges with the insurance company, having an experienced lawyer is essential. A skilled car accident attorney can help you navigate the complexities of insurance claims, challenge unfair assessments, and ensure you receive the compensation you are entitled to.
At Ladah Injury & Car Accident Lawyers Las Vegas, we specialize in fighting for your rights and working to get you the best possible outcome for your situation.
Call (702) 252-0055 or contact us online to schedule a free consultation today.
Conclusion
Determining whether a car is totaled in Nevada depends on specific legal thresholds, repair costs, and insurance assessments.
With the state’s 65% total loss threshold, understanding how insurers evaluate vehicle damage is essential. While exceptions exist, policyholders should be proactive in reviewing and disputing unfair settlement offers. Providing documentation, such as recent repairs and comparable vehicle values, can strengthen your case. If you believe your insurer is undervaluing your totaled vehicle, consulting a legal expert can help protect your rights.
Knowing the process ensures you receive fair compensation and make informed decisions after an accident.
