Home » Personal Injury: Frequently Asked Questions » Your Rights If Your Car is a Total Loss

Your Rights If Your Car is a Total Loss

Question:
The other driver’s insurance company has declared my car a total loss because of an accident. What is the insurance company required to pay me for my car?

Answer:

The Fair Market Value of Your Car

The insurance company only has to pay you the fair market value of your car at the time of the accident. The fair market value is what you could have reasonably expected to sell it for in your community. If you paid more for your car than it was worth, or if you owed more on your car than it was worth, you may lose money.

The Salvage Value

Even if it is a total loss, your car may still have salvage value. If you choose to keep your car, the insurance company can deduct its salvage value from the amount they pay you for your car.

Additional Payments

In addition to paying you the fair market value of your car, the insurance company must pay the towing and storage fee at the salvage yard. It must also reimburse you for the sales tax you will have to pay to get another car of similar value, as well as for the cost of the new license plates and title.

Sales Tax: 6.25%
New License Plates: $60.00 to $70.00
Title Transfer Fee: $28.00