{"id":2467,"date":"2023-12-04T13:34:43","date_gmt":"2023-12-04T19:34:43","guid":{"rendered":"https:\/\/jdsilvalaw.com\/?p=2467"},"modified":"2023-12-04T13:34:43","modified_gmt":"2023-12-04T19:34:43","slug":"texas-total-loss","status":"publish","type":"post","link":"https:\/\/jdsilvalaw.com\/blog\/car-accidents\/texas-total-loss\/","title":{"rendered":"Understanding How Texas Total Loss Threshold Works"},"content":{"rendered":"
Getting in a car accident is traumatic, especially when your collision results in injuries and property damage<\/a>. Dealing with the insurance company adds another layer of stress to your recovery process. The goal of the insurance is to pay out as little compensation as possible.<\/p>\n One of the ways insurance companies pay you less than you deserve is by declaring your vehicle a total loss when it is clearly not damaged beyond repair. Understanding how the total loss threshold in Texas works can help you obtain the most satisfactory results in your motor vehicle accident claim. Our Pearland car accident lawyers<\/a> at J.D. Silva & Associates can help you understand the claims process and get the compensation you deserve after your car accident.<\/p>\n A total loss threshold is when a motor vehicle\u2019s loss value reaches a certain percentage of its market value. In other words, it is the point where it is more costly to repair your damaged vehicle than it is to replace it. A vehicle\u2019s total loss threshold can be calculated by a simple percentage threshold or total loss formula.<\/p>\n Each state has a formula or specific percentage at which it declares your vehicle a total loss. Texas uses a simple percentage threshold. The total loss threshold in Texas is 100%, meaning that a vehicle must be declared totaled if the cost of repairing it is more than 100% of its actual cash value (ACV).<\/p>\n According to the Texas Administrative Code<\/a>, the actual cash value of your vehicle is determined as of your auto accident date. It is based on the retail value of your vehicle according to the National Automobile Dealers Association (NADA) guide or an equivalent used car guide, such as Kelley Blue Book. Your vehicle\u2019s ACV is based on several factors, discussed below.<\/p>\n Insurance companies consider certain factors when determining whether to declare your vehicle a total loss after a car accident. Typically, the company will send out an adjuster to inspect your vehicle. The adjuster will consider the following factors when evaluating your motor vehicle accident claim:<\/p>\n It is wise to have a general idea of your vehicle\u2019s ACV prior to accepting any auto accident settlement<\/a> offer from the insurance company. It is strongly recommended that you consult with a car accident lawyer in Pearland prior to speaking with an insurance adjuster. The personal injury attorneys at J.D. Silva & Associates are knowledgeable regarding the total loss threshold in Texas and can communicate and negotiate with the insurance company on your behalf.<\/p><\/blockquote>\n In some collisions, it will be obvious that your vehicle is a total loss. However, sometimes a vehicle does not have to look like it has been damaged in an car accident to be considered totaled. For instance, if a vehicle is damaged in a flood, it may not have visible damage, but it can still be considered a total loss based on the extent of repairs needed to get it back on the road.<\/p>\n To qualify for a total loss settlement in Texas, there must be insurance coverage that will cover your loss in the event of an accident. The following coverages may be applicable to your auto accident:<\/p>\n Sometimes the total loss amount the insurance company offers you, based on your vehicle\u2019s ACV and salvage value<\/a>, is not enough to buy a replacement vehicle. This is often the case when you have a loan or lease on your vehicle. The insurance company will pay your finance or lease company what you owe them before paying you any leftover balance.<\/p>\n While you may agree with the insurance adjuster\u2019s assessment that your vehicle is a total loss, you also may not agree with their valuation. In some instances, you may believe your vehicle is worth more than what they purport. If this is the case after your car accident, you can negotiate<\/a> with the insurance company if you are not satisfied with the amount offered for your vehicle.<\/p>\n To successfully negotiate with the insurance adjuster, you must demonstrate that the settlement amount they are offering you is not enough. There are certain factors you can use to support your claim that your vehicle is worth more than the insurance company is offering. For example, your vehicle may be worth more if it has optional features or upgrades, excellent maintenance history, and \/ or new tires.<\/p><\/blockquote>\n Your best option for negotiating the value of your vehicle is by retaining a Pearland car accident attorney. Consulting with a lawyer can help you if the insurance company is offering you less than the cost of the damages you have suffered in your wreck. We can negotiate the value of your car to get you maximum compensation for your car accident lawsuit<\/a>.<\/p>\n If the insurance company does not offer you enough money for your totaled vehicle to purchase a replacement, you may need to consider using any optional add-on insurance coverages you have. These optional policies can include new car replacement and gap coverage. New car replacement will replace your total loss vehicle with a comparable vehicle, and gap coverage will pay for any remaining balance owed toward your financed or leased vehicle that has been declared totaled.<\/p>\n If you are unsatisfied with the insurance company\u2019s payout after your car accident, you can also opt to keep your totaled vehicle. You could potentially receive compensation for a portion of the repairs and still keep your vehicle, or you could try to make more money by selling your car\u2019s parts yourself. If you choose to keep your totaled vehicle, you will need to apply for a salvage title<\/a>, which may make it difficult to insure your vehicle and \/ or sell it later.<\/p>\n Another option after receiving an unsatisfactory offer from the insurance company for your total loss vehicle is to file a lawsuit. You may be able to collect compensation from the party liable for your auto accident for both your vehicle damage and any injuries you received. Another option may be to file a legal claim against the insurance company for bad faith if it can be proven that it knowingly offered you an unfair amount for your totaled vehicle.<\/p>\nTexas Total Loss Threshold<\/h2>\n
Considerations When Assessing Your Vehicle\u2019s Actual Cash Value<\/h2>\n
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Declaring Your Vehicle A Total Loss in Texas<\/h2>\n
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Negotiating a Texas Total Loss<\/h2>\n
Options for When Your Texas Total Loss Payment is Not Enough<\/h2>\n
Get Help for Your Total Loss Vehicle from a Car Accident Attorney in Texas<\/h2>\n