When a vehicle is involved in an accident in Oklahoma, it may be considered a “total loss” if the cost of repairs exceeds 60% of its fair market value at the time of the incident, as outlined in Title 47 O.S. § 1111. Insurance companies use this threshold to determine whether a vehicle is totaled, considering factors such as repair costs and the vehicle’s fair market value.
Dealing with a Totaled Vehicle
If your vehicle is declared a total loss, you have several options:
- Accept the insurance company’s settlement offer and use the funds to purchase a replacement vehicle
- Keep the totaled vehicle and receive a reduced settlement, resulting in a salvage title
- Dispute the insurance company’s valuation of your car and negotiate a higher settlement
What Factors Do Insurance Companies Consider?
Insurance companies evaluate various factors when determining if a vehicle is a total loss, such as:
- The cost of repairs compared to the vehicle’s fair market value
- The vehicle’s fair market value, based on the National Auto Dealers Association guidebook or actual cash value
How Can You Disagree with the Insurance Company’s Assessment?
If you disagree with your insurance company’s assessment, you can:
- Obtain an independent appraisal of your vehicle’s value and repair costs. Two reputable Oklahoma auto appraisers:
- In Tulsa: Jerry Robarts, (918) 852-5987
- In OKC: Wiley Conley (405) 916-5544
- Negotiate with the insurance company to reach a fair settlement
- Consider mediation or litigation with the assistance of an experienced attorney
What Happens When the Other Driver’s Insurance Company Declares Your Vehicle a Total Loss?
If the other driver is at fault for the accident, their insurance company is responsible for compensating you for your totaled vehicle. In cases where the at-fault driver is uninsured or underinsured, you may need to rely on your insurance coverage to recover damages.
The Settlement Process for a Totaled Vehicle Claim
The time it takes to settle a totaled vehicle claim can vary depending on factors such as case complexity, the insurance companies’ responsiveness, and the workload of claims adjusters. On average, the process should not take more than a week to 10 days.
The settlement process typically involves the following steps:
- Filing the claim and providing the necessary documentation
- Assessment of the vehicle’s damage by the insurance company
- Determination of fault and liability
- Calculation of the vehicle’s actual cash value (ACV)
- Negotiation of the settlement amount, if necessary
- Acceptance of the settlement offer and release of the claim
Negotiating a Fair Settlement
To negotiate a fair settlement for your totaled vehicle, gather evidence to support your claim, such as:
- An independent appraisal of your vehicle’s value
- Comparable vehicle sales data to demonstrate your vehicle’s market value
- Documentation of any upgrades or regular maintenance that increased your vehicle’s value
How Do Outstanding Loans or Leases Affect a Totaled Vehicle?
The settlement process can become more complex if you still owe money on your totaled vehicle’s loan or lease. In most cases, the insurance company will pay the settlement amount directly to the lender or leasing company to cover the outstanding balance.
If the settlement amount is less than the outstanding balance, you may be responsible for paying the difference, known as the “gap.” Some auto loans and leases include gap insurance, which covers this difference. If you don’t have gap insurance, you may need to negotiate with your lender or leasing company to settle the remaining balance.
If the settlement amount exceeds the outstanding balance, you will receive the difference once the lender or leasing company has been paid. If this is the case, the insurance company should issue two checks.
Insurance Company Obligations and Oklahoma Law
Oklahoma law requires insurance companies to handle claims in good faith and deal fairly with policyholders. Note: this is with its policyholders, not the 3rd party hit by their insured. The Oklahoma Unfair Claims Settlement Practices Act (Title 36 O.S. § 1250.8(A)(2)) outlines the methods for adjusting and settling total loss claims, including offering a replacement vehicle or a cash settlement based on the actual cost to purchase a comparable car [Curtis v. Progressive Northern Insurance Company, W.D. Okla., No. CIV-17-01076-PRW].
In Government Employees Insurance Company v. Quine (Oklahoma Supreme Court, 264 P.3d 1245), the court emphasized that insurance companies must promptly investigate claims and place a fair value on them. If there is a legitimate dispute regarding the claim’s value, the insurer is not necessarily acting in bad faith by unconditionally refusing to tender a partial payment of underinsured motorist benefits.
Can I Choose Which Repair Shop?
Yes, you have the right to choose your own repair shop for a damage assessment. However, the insurance company may have a list of preferred repair shops they recommend. Using a preferred shop can sometimes streamline the process, as these shops have established relationships with the insurance company and are familiar with their procedures.
If you choose a different repair shop, ensure they are reputable and certified. Provide the insurance company with the shop’s assessment and repair estimate. The insurance company may send its adjuster to assess the damage and ensure the estimate is reasonable.
What to Do When the At-Fault Driver’s Insurer Denies Liability or Fails to Respond
If the at-fault driver’s insurance company is unresponsive or denies liability for the accident, you have several options:
- Contact your insurance company: If you have collision coverage, you can file a claim with your insurance company. They will pay for your damages and then seek reimbursement from the at-fault driver’s insurance company.
- Hire an attorney: If the at-fault driver’s insurance company denies liability or the case is complex, consider hiring an attorney. They can help you navigate the legal process and negotiate with the insurance company on your behalf. The next step is to file a lawsuit.
- File a complaint with the state insurance department: If you believe the at-fault driver’s insurance company is acting in bad faith or violating insurance regulations, you can file a complaint with your state’s insurance department. They will investigate the matter and take appropriate action if necessary.
Can You Keep Your Totaled Vehicle and Repair It Yourself?
You can keep your totaled vehicle and repair it yourself, known as “owner-retained salvage.” The insurance company will pay you the vehicle’s actual cash value minus its salvage value and your deductible. You will then be responsible for repairing the vehicle and obtaining a salvage title. Be aware that a salvage title can significantly reduce your car’s resale value and may make it difficult to insure or finance.
How Do Aftermarket Parts or Modifications Impact Vehicle Value?
Aftermarket parts and modifications can impact your vehicle’s value in different ways:
- Some upgrades, such as high-end audio systems or performance enhancements, may increase the car’s value, but only if previously disclosed to the insurance company and covered by higher premiums
- More commonly, aftermarket parts and modifications can decrease your vehicle’s value, as they may not be as reliable or desirable as original manufacturer parts
What If You Are Alleged to Be Partially at Fault?
If the other driver’s insurance company alleges that you were partially at fault for the accident, they may attempt to reduce your settlement based on Oklahoma’s comparative negligence laws. Under this system, your compensation will be reduced by the percentage of fault attributed to you.
How Can You Ensure a Fair Deal on a Replacement Vehicle?
To ensure you’re getting a fair deal on a replacement vehicle:
- Research the market value of the car you’re interested in using reputable sources like Kelley Blue Book or NADA Guides
- Compare prices from multiple dealerships and private sellers to find the best deal
- Have the vehicle inspected by a trusted mechanic to identify any potential issues or hidden damage
- Review the vehicle history report to check for past accidents, maintenance records, and ownership history
- Negotiate the price based on your research and the vehicle’s condition, and don’t be afraid to walk away if the deal isn’t fair or if you’re being pressured into a decision
Seek Legal Assistance from Experienced Oklahoma City Car Accident Attorneys
Dealing with a totaled vehicle claim after a car accident in Oklahoma City can be overwhelming and stressful. The dedicated car accident lawyers at Hasbrook & Hasbrook are here to provide the expert guidance and unwavering support you need during this challenging time.
Our team has the knowledge and experience to help you navigate the process of filing a total loss claim and fighting for the fair compensation you deserve.
Take the first step towards securing the best possible outcome for your claim by contacting Hasbrook & Hasbrook today. Call our office at 405-605-2426, schedule a conference or video call at your convenience, or contact us through our online form.