Does Georgia Have a Total Loss Threshold for Cars?

Georgia does not have a total loss threshold for cars. The insurance company will use a specific set of criteria to determine if your vehicle is totaled. An experienced Atlanta car accident lawyer can explain how insurers assess your vehicle and make the final call.

A lawyer can also negotiate a settlement that allows you to replace your vehicle, cover medical expenses, and move past your accident. Let’s take a closer look at how insurance companies determine if a car is totaled and the legal services that a dedicated attorney can offer during this difficult time. 

How Insurers Determine Total Loss Threshold for Cars in Georgia

As mentioned above, the insurance company will determine whether your car is a total loss after an accident. It’s important to understand that there are two methods the insurer may use to assess your vehicle and decide if it should be considered totaled. 

The first method the insurance provider may use is fairly simple. It involves comparing the total cost of repairs the vehicle would need to be driveable and its value. If the cost of repairs is greater than the vehicle’s value, the car is considered totaled. For example, if your vehicle is worth $15,000 and repairs would cost $20,000, the vehicle is a total loss.

The second method insurers use to assess seriously damaged vehicles involves comparing the estimated repair cost with a percentage of the vehicle’s value. The majority of insurers will look to see if the cost of repairs will exceed 70% of the car’s value. Whether your insurer uses the first or second method, you’ll want to work with an attorney to guide you through the process.

How Insurers Compensate You for a Totaled Vehicle

Now that you know more about Georgia’s total loss threshold for cars, it’s time to discuss how the insurance company may compensate you for your vehicle should it be considered totaled. There are two ways that the insurance provider may handle this situation. Depending on the insurer, they may use one of the two following methods:

• Replacement: In some cases, the insurance company may choose to replace your vehicle with a similar one. If your insurer uses the replacement method, they’ll provide you with a vehicle with the same or a similar make, model, and year. 
• Cash equivalent: Sometimes, instead of replacing your vehicle, your attorney will provide a payment equal to the value of your vehicle before the accident. This will allow you to [purchase a replacement vehicle with the same or similar make, model, and year.

While getting compensated for your totaled car may seem simple on paper, it can actually be a complicated process. To ensure you get the money you need to replace your vehicle or an adequate replacement from the insurer, you’ll want to work with an attorney. 

What Happens if You’re Still Paying Off Your Car Loan

If you are still paying off your car loan and get into an accident that has totaled your vehicle, it won’t impact the amount of compensation you’ll receive from the insurance company. That said, you’ll still have to finish paying off your loan even though your car is no longer driveable.

That said, if you purchased gap insurance when you signed up for your insurance policy, you might not be on the hook for the rest of your loan. Situations like this can be complex, so you’ll want to hire an attorney to advise you. A lawyer can explain the total loss threshold for cars in Georgia and answer any questions you have about paying off the rest of your loan. 

How a Car Accident Lawyer Can Help You After an Accident

If your car has been seriously damaged in a collision, seeking compensation from the insurance company by yourself can lead to a failed claim. Instead of pursuing damages on your own, you’ll want to work with a skilled lawyer. An attorney can draw on their experience and their firm’s resources to get the most out of your claim.

Here’s what a lawyer can do to get the compensation you need to move forward with your life:

• Investigate the accident
• Collect evidence like police reports, medical records, and photos of vehicle damage
• File a strong insurance claim on your behalf
• Negotiate with insurers to obtain a settlement that covers your losses
• Explain the total loss threshold for Georgia car accidents
• Take your case to court
• Abide by important filing requirements and deadlines

Get Started on Your Car Accident Claim Today

Dealing with the insurance company after a serious car wreck can be intimidating and confusing. Fortunately, the attorneys at John Foy & Associates are here to guide you through the claims process and ensure you get the settlement you need to cover your losses, replace your vehicle, and get back on the open road.

Contact us today to schedule a free consultation and learn more about your legal options. We’ll meet with you to discuss the compensation you could receive from a claim and answer any questions you have about Georgia’s total loss threshold for cars. We look forward to hearing from you soon.