Dealing with a Totaled Car After an Accident: What You Need to Know

Car accidents can be frightening experiences, no matter how minor or severe they are. Even if you come out unscathed, the aftermath of a collision can be complex and overwhelming. One of the most common outcomes of an accident is being informed that your car has been “totaled.” However, comprehending what it means to have a totaled car and understanding your options can be perplexing.

In the next few paragraphs, we will delve into what you should do if your insurance company declares that your vehicle is totaled in Oregon. We’ll help you navigate through the process so that you can make well informed decisions about your next steps.

When a vehicle is involved in an accident, it can be categorized as either a “structural total loss” or a “financial total loss.” The former means that the car has sustained such severe damage that it is no longer deemed safe to drive. This outcome is understandable and straightforward.

However, confusion often arises when a vehicle is considered a financial total loss but can still be driven or repaired. Many people assume that being “totaled” implies that the car is irreparably damaged beyond recognition. However, this term refers to the point when the cost of repairing the damages comes close to or exceeds the Fair Market Value or FMV of the vehicle.

For instance, a car with an fair market value of $40,000 would require extensive damage before being declared totaled. In contrast, a vehicle with an fair market value of $5,000 would need much less damage to reach this status. Therefore, what constitutes a totaled car in Oregon depends on if the damage costs are more than 80 percent of the fair market value of the vehicle.

After an accident, insurance companies may undervalue your vehicle if they consider it totaled. They often try to minimize the settlement amount, which can be frustrating for car owners. Fortunately, in Oregon, you have the right to dispute the insurer’s offer if you believe that they have not accurately appraised your vehicle. In most cases, insurance companies will initially offer much less than your car’s actual worth.

In Oregon, insurers use a specific formula to determine whether a vehicle is repairable or should be considered totaled. If the cost of the repairs exceed 80 percent of the FMV, then the vehicle will be totaled. It can also be totaled due to parts availability, age of the vehicle or if the repair is so intensive that it will take too long. If this happens, you have several options available to you.

Getting a Fair Value for Your Vehicle After It’s Declared Totaled

If your vehicle is declared a total loss, the insurance company must provide you with an appraisal report. However, if you disagree with their valuation, you can hire an independent auto appraiser to conduct your assessment. Your goal will be to demonstrate that your car is worth more than what the insurer is offering.

Oregon insurance policies include an “appraisal clause” that allows you to use an independent appraiser. If this results in an increase in your settlement offer, the insurer will reimburse you for the cost of hiring the appraiser.

To ensure that you get a fair value for your vehicle, consider speaking to a certified Oregon auto appraiser like Ken Nix at Leverage Auto Appraisals. Insurance carriers often use valuations such as CCC One and Mitchell or JD Powers to justify low settlements. Hiring an Oregon Certified Auto Appraiser can also help navigate the negotiation process when dealing with aggressive insurers and advocate for you throughout the complicated settlement process involving recovering your true fair market value.