- September 18, 2024
- Tucker Law
- Car Accident Lawsuits
You pay your monthly insurance premiums so you can be compensated for injuries and damage to your car if you’re in a car accident. However, just paying the premiums doesn’t mean you will get the money you need from your insurance company. Insurance companies do what they can to pay the least they can. But accident victims can help their efforts by understanding actual cash value (ACV), gathering evidence after a crash, and meeting with a lawyer.
Have you been in a car accident where your car was totaled? If so, Tucker Lawyers is ready to fight to get you the most compensation out of your property damage and personal injury claim. Call (516) 399-2364 for a free consultation today.
Understanding Actual Cash Value (ACV)
When it comes time to seek compensation for a totaled vehicle, there’s much more involved than simply asking an insurance company to pay up. First, you must gain an understanding of the concept of actual cash value (ACV).
Actual cash value is defined as the amount of money an insurance company will pay to replace a wrecked car with a similar one. In other words, it is how much your car was worth at the time of its totaling.
As you might know, value depreciation is a real phenomenon with vehicles. A car that was worth $50,000 new might only be worth $35,000 a few years after the sale. So instead of paying you $50,000 for a new car, the insurance company handling your case will likely use depreciation formulas to determine the actual cash value of the vehicle.
If your three-year-old car is totaled in a car accident, the insurance company will not cut you a check for a new model identical to yours. They will instead factor depreciation into the equation and pay you less.
Factors that play into a depreciation calculation for a vehicle include:
- Age of the vehicle
- Mileage
- Condition
- Pre-existing damage.
The make and specific model of the vehicle also heavily factor into the depreciation calculation.
Actual Cash Value vs. Replacement Cash Value
Replacement cash value is the cost of replacing your totaled vehicle without factoring in depreciation and deductions. Insurance companies typically pay actual cash value and not replacement cash value. However, some insurance policies may have replacement cash value provisions in them.
Gathering Evidence of Your Car’s Value
It likely comes as no surprise to you that insurance companies frequently refuse to pay the actual cash value of a vehicle unless compelled to do so. Instead, they throw resources at strategies that allow them to pay less or nothing whatsoever. Fortunately, an attorney can compel an insurance company to pay up or face significant legal recourse.
One way to keep these companies honest is by gathering and presenting proof of the value of your vehicle. If an insurance company refuses your request, simply provide your attorney with evidence of your car’s value.
Evidence of a car’s value will include those things listed above that factor into depreciation formulas as well as:
- Blue Book quotes
- Quotes from auto industry experts
- Sales data for similar vehicles.
If an insurance company says your vehicle is worth thousands of dollars less than you believe, don’t take its word for it. Remember that insurance companies would love to pay you pennies on the dollar for a vehicle replacement and will do so without enough evidence of its actual worth.
Tucker Lawyers knows how to properly evaluate car accident claims and get the money clients deserve.
Negotiating With Your Insurance Company
In most cases, insurance companies start out with seriously low compensation offers in the hopes that claimants will accept them because they don’t know better. If you do not have a lawyer and you receive an insurance offer for your vehicle, you can expect the offer to be well below what it should be.
Insurance companies know that the vast majority of unrepresented claimants understand very little about the claim process and how much they are entitled to. Proof of this is the numerous plaintiffs who walk away with sometimes up to 90% less than they deserve.
The settlement process must involve negotiations in order for a victim to get what they truly deserve. Otherwise, the victim will be left with a paltry payout for their destroyed vehicle.
Hiring a Car Accident Attorney
Ultimately, the top way to get the most money from insurance after your car is totaled is with the services of an experienced car accident lawyer. When you hire a lawyer, they will have the same exact goal as you: recovering as much accident compensation as possible.
As an experienced professional, your attorney understands the “game” involved in car accident compensation. They know insurance company tactics and tricks and have strategies and counters of their own.
Ultimately, your car accident attorney knows the law and knows how to confidently navigate the seemingly countless provisions governing car accidents and compensation claims. And insurance companies know that lawyers know the law, which is precisely why they change their tune when a claimant hires a lawyer.
Some of the many things an attorney can do to help you maximize your totaled car settlement include:
- Leaving no stone unturned in your accident investigation
- Consulting with industry experts for valuation purposes
- Managing all claim-related paperwork, forms, and documents
- Using the law to compel proper payment.
Your attorney will also represent you in court when necessary. However, most of these cases are resolved through settlement.
Get Effective Representation
If you’ve suffered an auto crash, you can take steps that will help your attorney in their efforts to recover the maximum compensation payout for your claim. In every case, contacting an attorney soon after a crash is necessary to preserve evidence and beat the statute of limitations.
For a free consultation and hope for the future, contact Tucker Lawyers today. We are ready to fight to get you the full compensation you deserve. Call (516) 399-2364 today.
Managing Attorney John. J. Tucker, Esq.
John has personally handled thousands of clients who were victims of another’s negligence and fights relentlessly for their rights. John enjoys bringing closure to a client’s matter so that the injured party can move forward with their life. His background enables him to evaluate complex liability related claims and bring resolution to claims in a record time frame. [ Attorney Bio ]