Were you involved in a significant motor vehicle collision in Stockton? If so, you may not currently be able to drive your vehicle. If the damage was bad enough, your car may not even be repairable at all. A car can be declared a total loss after a motor vehicle collision in California if the cost of repair is deemed too high given its pre-crash value. Here, our Stockton car accident lawyer explains what it means for a vehicle to be totaled in California.
California Uses the Total Loss Formula (TLF)
Some states have a statutory threshold of damages at which a vehicle is considered to be a total loss. However, that is not the case in California. Instead, our state uses the “total loss formula.”The 2004 California appellate court case of Martinez v. Enter. Rent-A-Car Co. explains the standard well: A vehicle is a total loss in California if “the cost of repairs plus the salvage value is greater than or equal to the actual cash value (ACV) of the vehicle.” In other words, a vehicle is a total loss if it is too expensive to repair given its inherent value. Here are the three key factors that you will need to determine for the calculation of a total loss:
- Cost of Repairs: First and foremost, you will need to determine the cost of repairs. Broadly speaking, the cost of repairs represents the total estimated expense to restore a damaged vehicle to its pre-accident condition. It is a comprehensive calculation. You must include parts, labor, and any additional fees necessary to complete the repairs. There can sometimes be disputes over how much it will cost to fix a vehicle after a crash. Repair estimates should typically be prepared by licensed mechanics or insurance adjusters.
- Salvage Value: Next, you will determine what is the salvage value of your vehicle. Even if it cannot be fully repaired and returned to the road, it is likely that your car still has some value for salvage purposes. In some cases, post-crash vehicles will have certain parts that can be reused. Though, in other cases, a totaled vehicle may be so damaged that it will be salvaged only for scrap metal. The salvage value is simply the amount a damaged vehicle can be sold for in its current, unrepaired state.
- Actual Cash Value: Finally, you need to know the actual cash value or (ACV) of your vehicle. To be clear, the ACV is a pre-crash determination. In other words, you will need to figure out what the car was worth right before it was totaled in the accident. The actual cash value (ACV) is the market value of the vehicle. It accounts for all relevant factors—from make and model to age, mileage, and condition. Insurers determine ACV by comparing the vehicle to similar models in the local market. The ACV is used as a baseline for calculating whether a vehicle is a total loss under California law.
Here is an example: Imagine that you were involved in a serious crash in Stockton. Your vehicle had an actual cash value estimated at $12,000 before the accident happened. After the accident, the salvage value—the sale value on the damaged state—was assessed at $3,000. A licensed mechanic estimated that the total cost to repair your vehicle is $10,000. Under California’s total loss formula, you must add the salvage value ($3,000) to the cost of repairs ($10,000). Since $13,000 exceeds the $12,000 actual cash value, your vehicle would be considered a total loss.
What If You Do Not Agree With the Insurance Company’s Value Estimate for Your Car?
The insurance company does not get to make the final decision on the value of your vehicle. You have the right to seek full and fair financial compensation for your property damage. Disputes often arise over a vehicle’s actual cash value. Insurers may undervalue the car by overlooking upgrades, specific features, or the local market more generally. You should carefully review the insurer’s valuation report for accuracy. If your car has been undervalued, you have the right to appeal. You should gather evidence to support your claim—such as recent appraisals, repair records, or listings of comparable vehicles in your area.
Total Loss Accidents Often Result in Physical Injuries
For a car to sustain enough damage to be considered a total loss, it probably took a significant hit. In many cases, accidents that result in vehicles being declared “totaled” also result in physical injuries. If you were hurt in a crash where your vehicle was totaled, it is imperative that you seek immediate medical attention. Your health and safety are the top priority. You have the right to pursue compensation for the full extent of your damages through a car accident injury claim. Beyond the costs to replace your totaled vehicle, you may also be entitled to recover compensation for:
- Ambulance transportation;
- Emergency room care;
- Hospital bills;
- Physical therapy;
- Loss of wages;
- Diminishment of earnings;
- Pain and suffering;
- Mental distress;
- Long-term disability;
- Loss of quality of life; and
- Wrongful death damages.
We Can Help With All Aspects of Your Claim in Stockton
Car accident claims are complicated. If your vehicle sustained so much damage that it is a total loss the case can be even more challenging—especially so if you suffered an injury in the collision. At Redkey Gordon Law Corp, we have the skills and experience to handle all aspects of your personal injury claim. Our team provides proactive and solutions-focused guidance and support. With $25 million recovered for victims and families, our case results show how we can help clients.
Contact Our Stockton, CA Auto Accident Attorneys Today
At Redkey Gordon Law Corp, our Stockton auto accident attorneys provide justice-focused advocacy to clients. You need full and fair financial support after a crash. If you have any questions or concerns about your vehicle being declared a total loss, please do not hesitate to contact us today. With an office in Stockton, we handle motor vehicle accident cases throughout Central California.