Collisions can leave your vehicle a mess; however, you love your car, and you’re determined to have it repaired. By the time you’re finally done, no one will ever know your vehicle was in an accident. This also means you’re not staring at months of new car payments.
What happens when the insurance company doesn’t want to repair your vehicle? The insurance adjuster is calling it a total loss as a claim, but is there anything you can actually do to save your beloved vehicle from going to the scrap yard? Navigating Colorado’s total loss law can leave your head spinning so we’re answering some of your common questions.
Common Questions About Colorado’s Total Loss Law
Are you worried the insurance company is going to call your vehicle a total loss? Not sure what the law covers? We’re answering these and other questions.
When Does Colorado Consider a Vehicle Totaled?
Most states have a law or so detailing when a vehicle is considered a total loss. If your vehicle meets any of the following, it’s probably going to be called a loss:
- The cost of repairs plus the salvage value is at least 100% of the vehicle’s actual cash value.
- The vehicle is damaged to the point that it can’t be repaired to its pre-loss condition.
- The cost of repairs is uneconomical, including rental expenses, specialized labor, and part availability.
How does the insurance company know your vehicle’s pre-accident value? This is probably the easiest part of the process. Like pretty much everyone else, the insurance company is going to turn to the Kelley Blue Book. This is sort of the official reference for finding a vehicle’s total value.
What Happens If My Car is Totaled?
If you’re worried you’re not going to recover any compensation for your vehicle if it’s totaled, then take a deep breath. While it’s definitely not going to the repair shop, you’re probably still going to receive a settlement check to help you deal with things. Remember, referring back to the Kelley Blue Book? This is probably pretty close to the amount you’ll receive in compensation. Don’t forget that you’re checking its pre-accident value so this should help a little bit.
If there’s a deductible, it may be taken out of your settlement. This depends on the insurance you’re filing your claim with. If your claim is with the at-fault driver’s insurance provider, they’re usually responsible for covering any deductibles. On the other hand, if the claim is with your insurance provider, you’re usually on the hook for the deductible.
Can I Keep My Vehicle Even If It’s Declared a Total Loss?
This seems like a pretty simple yes or no question, but it can be surprisingly complicated. You can keep your vehicle if the insurance adjuster lists it as a total loss, but it’s probably not going to stay in your driveway.
Your insurance settlement includes the pre-accident value of your vehicle. In essence, once you accept the settlement check, the insurance company will own your totaled vehicle. Chances are, your vehicle now has a salvage title and this brings on a whole new set of rules. For example, you may find yourself essentially buying back your vehicle, which usually means getting it road-worthy, and this can quickly get expensive. The following must all be in good working order:
- Engine
- Transmission
- Tires
- Wheels
- Seats
- Exhaust
- Brakes
Getting a vehicle back in working condition after an accident can easily be as much as a new car sticker price.
What Happens to My Vehicle After It’s Considered Totaled?
Not a lot happens to your totaled vehicle after an accident until you settle your insurance claim; however, things start moving once you agree to the settlement offer. Now, it’s probably time to say goodbye to your car. The insurance company is probably going to have it sold to a Colorado scrap yard.
The junkyard will remove any usable parts. These the scrap yard can resell. Hey, at least everything from your totaled vehicle isn’t ending up in the scrap yard. Unfortunately, anything not salvaged ends up being crushed. Yep, this is when your vehicle turns into a compact, crushed metal square. The junkyard gets to keep any profits it makes from selling reusable parts. The insurance company gets the check from the salvage yard. Before you start yelling about fairness, keep in mind your settlement check probably included your vehicle’s blue book value.
Can I Insure a Totaled Vehicle?
Okay, we’re not sure why you want to pay for insurance on a vehicle that is not drivable. Even Colorado law doesn’t require vehicle owners to insure anything that can’t be driven on the road. There’s really no reason to shell out money on the monthly insurance premiums.
Once the vehicle is legal to drive, then start looking for car insurance. However, there’s a good chance you’re going to be limited to only liability insurance. Most Colorado insurance companies aren’t going to provide full coverage for a salvaged vehicle. The risks are simply too high for the insurance company to take. The reason insurance companies view full coverage as too high of a risk is there’s no guarantee the repairs will hold up in an accident.
What’s the Insurance Process Like if I Total a Leased Car?
This is a great question, and you may not be thrilled with the answer. The Kelley Blue Book is going to come out. Unfortunately, the listed value of your totaled vehicle probably isn’t going to cover the remaining balance on your lease.
There’s no reason why you can’t try to recover this expense in your personal injury claim against the at-fault driver. The remaining balance can be considered economic damage, but there’s also no guarantee you’ll receive compensation. If this is something you’re concerned about, consider taking out guaranteed auto protection (GAP) insurance. This add-on policy may cover what’s left on your vehicle lease after receiving your accident settlement.
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Do I Need an Attorney For a Colorado Totaled Vehicle Claim?
Chances are it’s a good idea to work with an experienced Colorado accident attorney. Navigating the claim process for a totaled vehicle can be a headache, especially if you’re still paying on the lease. Your attorney can help you navigate the process and ensure you receive compensation whether your vehicle is totaled or needs extensive repairs.
