What Will Happen to My Car After An Accident?
When you are involved in a car accident, it is possible that you may be injured. In addition to dealing with whatever injuries you received in the accident, you will also be dealing with the damage that your vehicle sustained in the crash. After an accident, it is only natural to wonder what will become of your car and when you will be back on the road.
In thinking about your vehicle after an accident, the biggest question that you are likely to have is whether your vehicle will be repaired or replaced, or whether the insurance company will instead choose to reimburse you for it with cash. You may have strong feelings about what you desire the outcome to be, but the decision will be made by the insurance company, based upon what option will be the most cost effective for them.
Sometimes, it would cost the insurance company more to fix your vehicle than it would to reimburse you for the amount that your vehicle could have sold for on the date of the accident (its fair market value). When this happens, the insurance company is likely to tell you that it is “totaled”. To say that a vehicle has been “totaled” means that it has been rendered a total loss. In other words, if your car has been totaled, it is economically impracticable for the insurance company to pay to repair your car, so they will instead offer to replace it or reimburse you for it.
Since the determination of whether it is feasible to repair your car involves the estimated cost of repair and the fair market value of the car, it is important that you understand what fair market value means. The fair market value of a vehicle is what a buyer would expect to pay for a similar vehicle in the geographic area where you live. It accounts for things like the age of the car, its condition, mileage, and features. The insurance company is likely to use the Kelley Blue Book to determine the fair market value, as it is a trusted source for that information. There are also other reliable sources of fair market value, such as the local newspaper or online car buying websites. In cases where there is a dispute over the fair market value of a car, a valuation expert may be asked to weigh in on that topic.
If the insurance company decides that it will pay for the repairs to your car, you get to decide where the car will be repaired. The only requirement is that the repair shop be licensed. This is good news for people who know a mechanic that they trust with all of their automotive needs. It also ensures that you can choose a repair shop which is conveniently located near where you live or work. Besides the cost of repairs, the insurance company will pay prorated sales tax, tag, and registration fees, as well as reasonable storage and towing costs which may be incurred while your vehicle is at a garage and you are awaiting the insurance company’s decision on whether it will be repaired or replaced.
If your car has been damaged in an automobile accident, you could benefit from the assistance of a knowledgeable Memphis Automobile Accident Attorney. The accident attorneys at Bailey & Greer, PLLC may be able to help you. To learn more, call us at (888) 470-9143 to schedule a time to discuss your case with us. At Bailey & Greer, PLLC, we are small enough to care, big enough to fight, and experienced enough to win.