Ross Moore, founder of Ross Moore Law, is an experienced personal injury attorney serving Georgia and Tennessee. He is knowledgeable and confident in all types of personal injury cases, particularly the ones that end up in court.

When Your Car Is Totaled and Insurance Isn’t Enough: What to Do Next in Your Accident Claim

Being in a car accident can be a traumatic experience, and when someone totals your car, the aftermath can feel overwhelming. Questions about claims, legal rights, and fair compensation often arise as you navigate the stressful process of recovering from the incident. If you’re wondering whether you can sue the at-fault driver or pursue legal action to cover your losses, you’re not alone. Many individuals in your situation are unsure of their options or how to handle the complexities of claim policies, liability, and compensation claims.

In this blog, we’ll guide you through the steps to take after your car is totaled, from filing a claim to pursuing legal action, and emphasize the importance of working with an experienced car accident lawyer to secure fair compensation.

Your Legal Rights After a Total Loss Accident

Yes, you can sue the driver who totaled your car, but whether you should file a lawsuit depends on several factors. In most cases, your first step is to file a car accident claim with the at-fault driver’s insurance company. However, if the insurance claim doesn’t fully cover your losses—or if the claim is denied or undervalued—you have the legal right to pursue a lawsuit for additional compensation.

When Does It Make Sense to Sue After Your Car Is Totaled?

Filing a lawsuit may be necessary if:

The insurance claim payout is too low: If the car accident claim settlement doesn’t cover the actual cash value of your totaled vehicle, you can challenge the valuation or sue for the difference.
You suffered injuries beyond property damage: When your car accident claim involves medical expenses, lost wages, or pain and suffering in addition to your totaled car, a lawsuit can help you recover full compensation.
The at-fault driver is uninsured or underinsured: If the negligent driver lacks adequate insurance coverage, your claim options may be limited, and a lawsuit against the driver personally may be your best path forward.
The claim was wrongfully denied: Insurance companies sometimes deny valid car accident claims. If you believe your totaled vehicle claim was unfairly rejected, legal action can force the insurer to reconsider.
Gap insurance doesn’t cover your loan balance: Even after your claim is paid, you might still owe money on a totaled car if the settlement doesn’t cover your outstanding loan. A lawsuit can help recover the shortfall.

Understanding the Difference Between an Insurance Claim and a Lawsuit

Filing a car accident claim is typically faster and less expensive than going to court. Most totaled car situations are resolved through the claim process alone. However, when the claim falls short or the insurance company refuses to negotiate fairly, a lawsuit becomes the next logical step to protect your financial interests.

Before deciding whether to sue, consult with an experienced car accident attorney who can evaluate your claim, calculate your total damages, and determine whether pursuing legal action will result in better compensation than accepting the insurance company’s offer for your totaled vehicle.

Reporting the Car Accident and Filing a Claim

When your car is totaled, the first step is to report the accident. Prompt notification is crucial. You need to inform both the at-fault driver’s and your own insurance company as soon as possible. Delaying this can complicate your claim and affect your compensation.

Essential Details to Include in Your Accident Claim Report

When filing your report, include specific details to help your case. Mention the accident date and time, the location of the crash, and a description of how the accident occurred. Document the extent of the car damage as well. If possible, take photos of the scene and your vehicle. This evidence can be valuable during the claims process.

Make sure to gather witness statements if there are any. Their accounts can support your version of events. Also, any police report numbers or citations issued at the scene must be collected. These records will strengthen your claim and clarify the circumstances surrounding the accident.

Determining Liability and Insurance Coverage

Understanding liability in a car accident is crucial for recovering damages. Liability refers to who is responsible for the accident and its consequences. In most cases, the at-fault driver’s insurance will cover property damage. This means if another driver caused your car to be totaled, their insurance company should pay for the damages to your vehicle.

Assessing Liability

To assess liability, insurance companies will investigate the accident details. They will look at police reports, witness statements, and any available evidence. Factors such as traffic laws and driving conditions can influence the determination of fault. If you can demonstrate that the other driver was negligent, you may have a stronger case for compensation.

Role of the At-Fault Driver’s Insurance Claim

Once liability is established, the at-fault driver’s insurance company will be responsible for covering your property damage. This includes the cost to repair your vehicle or the actual cash value (ACV) if your car is totaled. If the other driver is uninsured or underinsured, you may need to turn to your own policy for coverage.

Utilizing Your Own Collision Coverage

In cases where liability is disputed or the at-fault driver lacks insurance, you can utilize your own collision coverage. This type of coverage helps cover repair costs or the value of your totaled vehicle, regardless of who was at fault. It can be a valuable resource when navigating complex claims situations or dealing with uncooperative insurance companies.

Importance of Documentation

To support your claim, document everything related to the accident. Take photos of the accident scene, gather witness statements, and keep records of all communication with insurance companies. This documentation will be essential in proving liability and ensuring you receive the compensation you deserve.

Calculating the Value of the Totaled Vehicle

When your car is declared to be totaled, understanding how insurance companies determine its value is essential. This process involves evaluating the car’s actual cash value (ACV) and comparing it to the estimated repair costs.

How Insurance Companies Determine Total Loss

Insurance companies typically declare a vehicle as totaled when the cost to repair it exceeds a certain percentage of its ACV. The ACV is the market value of your car right before the accident. To calculate this, insurers consider various factors, including:

Make and Model:The brand and type of your vehicle play a significant role in its market value.
Age and Condition: Older cars or those in poor condition will have a lower ACV.
Mileage: Higher mileage can decrease the car’s value.
Local Market Trends: The demand for your specific vehicle in your area can influence its worth.

If the estimated repair costs are higher than the ACV, the insurance company will classify your car as totaled. This means they will not cover repairs but will instead offer you a settlement based on the ACV.

Implications of a Vehicle Being Declared a Total Loss

Once your vehicle is deemed totaled, it has significant implications for you as the owner. The insurance company will typically provide you with a settlement offer based on the ACV. It’s important to understand that this amount may not cover your outstanding car loan if you financed your vehicle.

In some cases, the settlement might leave you with a gap between what you owe on the loan and what the insurance company pays. This is where GAP coverage can be beneficial, as it covers the difference between the car’s value and the loan balance.

What to Do If You Disagree with the Adjuster’s Estimate

After an accident, it’s common to feel frustrated if the adjuster’s estimate for your totaled car seems unfair. Understanding how to challenge this estimate can help you secure a better settlement. Here are steps to take if you disagree with the assessment.

Gather Evidence for the Fair Market Value of Your Vehicle

To effectively dispute the adjuster’s estimate, start by collecting evidence that supports your claim for a higher vehicle value. Here are some key pieces of evidence to gather:

Research Comparable Sales: Look for listings of similar vehicles in your area. Websites like Kelley Blue Book, Edmunds, and local classifieds can provide insights into what similar cars are selling for.
Document Vehicle Condition: Take detailed photos of your car before the accident. Highlight any upgrades or features that could increase its value, such as new tires, a premium sound system, or a recent paint job.
Collect Maintenance Records: Show that your vehicle was well-maintained. Receipts for regular services can demonstrate that your car was in good condition before the accident, which may justify a higher valuation.

Options for Filing a Property Damage Lawsuit

If you still find the settlement to be insufficient after presenting your evidence, you may consider filing a property damage lawsuit. Here are steps to guide you through this process:

Consult with a Car Accident Attorney: An attorney can provide valuable insights into the viability of your case. They can assess whether the insurance company’s offer is reasonable based on the evidence you’ve gathered.
Prepare for Court: If you decide to pursue legal action, be ready to present your evidence in court. This includes all documentation and any witnesses who can support your claim.
Understand Your State’s Laws: Each state has specific laws regarding property damage claims. Be aware of the statute of limitations, which dictates how long you have to file a lawsuit after the accident.

Legal Options for Seeking Compensation

When someone totals your car, you may wonder about your legal options for recovering damages. Understanding these options is crucial for ensuring you receive fair compensation for your losses.

Conditions for Suing the At-Fault Driver

You can sue the at-fault driver if you have incurred damages beyond just property damage. These damages can include medical expenses, lost wages, and pain and suffering. To pursue a lawsuit, you must establish that the other driver was negligent and that their actions directly caused the accident. Gathering evidence, such as police reports, witness statements, and photos from the accident scene, can strengthen your case.

Statute of Limitations

In Georgia, the statute of limitations for filing a lawsuit related to a car accident is two years from the date of the accident. This time limit applies to claims involving personal injury or property damage, including the loss of value to your vehicle. Failing to file within this period can prevent you from recovering any compensation. However, if the claim is solely against your own coverage under an uninsured motorist policy, the time limit may extend depending on your policy terms.

Pursuing Compensation Through Insurance Claims

Before considering a lawsuit, you should first address your claim. If the at-fault driver’s insurance offers a settlement, you may want to evaluate it carefully. If the offer does not cover your damages, you can negotiate or potentially file a claim against your own policy, especially if you have collision coverage.

Filing a Lawsuit

If negotiations fail and you believe you deserve more compensation than what has been offered, you can file a lawsuit against the at-fault driver. This process involves drafting a complaint that outlines your case, filing it with the appropriate court, and serving the defendant with the lawsuit. From there, the legal process can include discovery, settlement negotiations, and potentially a trial.

Get Help From a Georgia Car Accident Claims Lawyer Before You Make a Costly Mistake

If your vehicle was totaled in a crash, the aftermath can quickly become overwhelming—claim disputes, low settlement offers, and unanswered questions about your rights. You don’t have to tackle the car accident claims process alone. An experienced car accident claims lawyer at Ross Moore Law can step in, protect your claim, and ensure the insurance company doesn’t take advantage of you.

Our team understands how total-loss claims work, how insurers calculate value, and what it takes to fight back when your payout doesn’t reflect the true cost of your loss. With Ross Moore Law on your side, you’ll have a dedicated legal team focused on maximizing your accident claim and guiding you through every step of the process.