What To Do If Your Car Is Totaled After An Accident In Colorado
If a vehicle is seriously damaged in an accident, it may not be worth fixing. The insurance company may call it a total loss, also known as a “totaled vehicle.” When this happens, it’s important that the insurance company pays you fairly. Knowing what to do when your car is totaled can ensure you get the compensation you deserve.
Our Colorado car accident attorneys share how to know if your car is a total loss and what steps you should take next.
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When Is A Car Considered Totaled?
When a vehicle is damaged to the point that it would cost more to repair it than its actual estimated worth, it is considered a total loss. Generally, you can look up the actual value of a vehicle by consulting with a dealership or using popular online valuation tools like Kelley Blue Book.
As with most states, in Colorado, a vehicle is considered a total loss when:
- 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
When a car is a total loss after an accident, there is no repair process. With an auto total loss accident, the owner receives compensation based on the car’s value and the insurance policy.
What Happens If I Total My Car?
If your car was totaled in an accident, it doesn’t get fixed. Instead, you’ll need to file a claim with the insurance company, and then you’ll get paid the value of the vehicle minus any deductible with an insurance total loss payout.
How Much Will Insurance Pay For My Totaled Car In Colorado?
Insurance should pay you the current market value of the vehicle. There may also be a deductible that is taken out of the payment. You can use the Kelley Blue Book value of your car to get an idea of the current market value for your vehicle. You should also consider other factors, such as the state of your vehicle and whether you have upgraded or enhanced it in a manner that would make its value higher.
It’s important to understand that the current market value of the car is different from what you paid for the car. Vehicles, especially if you have purchased a new vehicle from the dealership, will generally decrease in value.
Despite these factors, you also have the right to evaluate the insurance company’s determination of the current market value of the vehicle. This is where the support of legal representation can be valuable. An auto accident attorney versed in Colorado auto laws can help you recover the damages you may be entitled to.
Do You Pay A Deductible If A Car Is Totaled?
You may need to pay a deductible if the payment comes from your own insurance policy. This is not related to your accident, but insurance companies often have deductible thresholds that need to be met before benefits can be applied.
If the other driver is at fault for the accident, their insurance pays for the value of the totaled vehicle. In that case, there should be no deductible that you’ll have to pay out.
How To Get The Most Money From Insurance For Totaled Cars In Colorado
When you receive a proposed offer from the insurance company, it’s important to remember that you can respond to the offer for your totaled vehicle. If you feel you are undercompensated, you can push back with a counteroffer. To get the most money from comprehensive coverage insurance for a totaled car, your counteroffer should consider the following:
- The specific features of the vehicle. For example, are there any features or upgrades that your vehicle has that heighten its overall value? (Retail value — not trade-in value).
- Improvements and upgrades made to the vehicle recently, like new tires. (However, some policies don’t cover aftermarket modifications).
- Comparable vehicles in the area with similar mileage and features.
With research and documentation, you can make a counteroffer to get more money for your totaled car. You can also speak with an experienced Colorado car accident lawyer to help you get the compensation you deserve.
Can I Still Keep My Car Even If It’s Declared A Total Loss?
If your car is declared a total loss, you must make it roadworthy again before you drive it. In this case, you may have to “buy it back” if you’ve already received a settlement check. Colorado law creates rules for the title of salvage vehicles. Under these rules, all the major parts and systems of the vehicle must be in working condition, including:
- Engine
- Transmission
- Tires
- Wheels
- Seats
- Exhaust
- Brakes
What Happens After A Car Is Totaled In A Colorado Auto Accident?
Most totaled cars, even if they are leased or rental cars, are typically sold off to a junkyard where they are scrapped. Usable parts are taken, and the rest of the car is crushed. Some vehicles are repaired and can be driven again after an inspection by a state-certified mechanic. However, coverage for a rebuilt salvage vehicle is more limited than for other vehicles. If a vehicle is rebuilt, it will be listed as “salvaged” on the vehicle title. Because of this label, salvaged vehicles will typically always yield lower market rates because of their history.
Who Keeps The Money When A Totaled Vehicle Is Scrapped?
More often than not, after your vehicle is scrapped, the insurance company keeps the money they make from scrapping your vehicle. They pay you for its value minus any deductible, but they keep what they get from parts and scraping the totaled car. While not a lucrative business, this is one way insurance companies can recover some of their costs after a payout for a totaled vehicle.
If My Vehicle Is A Total Loss Vehicle, Can It Still Be Insured?
A total loss vehicle cannot be driven legally, so you cannot purchase car insurance for it. The vehicle must be repaired and inspected to be declared safe to drive. Once it has been declared rebuilt from a salvaged title, you can look for car insurance.
Many insurance companies sell only property damage liability coverage for salvaged vehicles, which can put you at financial risk if you’re involved in another crash. This is an important factor to consider if you decide to pursue fixing up a total loss to a driveable state.
What Happens If You Total A Leased Car?
The terms of the lease continue even if you’ve totaled the car. Usually, the value of the car is less than what you owe on the lease, so you may have to cover the difference.
Whenever you enter into a lease agreement, you should always check if your lease agreement has guaranteed auto protection (GAP) insurance. GAP coverage may pay the difference. If you have it, you may not have to pay out of pocket if the value of the vehicle is less than what’s remaining on the lease.
GAP insurance is optional when leasing a vehicle, but it’s a way to protect you from a significant, unexpected loss.
Speak With A Colorado Auto Accident Attorney You Can Trust
If you’ve been in a serious accident and your vehicle was totaled as a result, our Colorado car accident lawyers can help you understand your rights and whether you deserve compensation for physical injuries or pain and suffering.
In addition, if another party is at fault for the accident, their insurance should pay you for your totaled vehicle. Our legal team can help you understand your options so you can pursue the compensation you may be entitled to.
For those involved in an accident where you were hit from behind, contact our Colorado rear-end accident attorney team for specialized representation. Our lawyers work to help victims receive fair payment for their insurance claims. We are located near you in Denver, Fort Collins, Colorado Springs, Aurora, Englewood, and throughout Colorado. Our attorneys are ready to serve you and fight for the compensation you deserve.
Sources:
Understanding Colorado Law Regarding Total Loss Vehicles. (2024).
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Written and Legally Reviewed By: Kyle Bachus
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Kyle is a member of the Colorado Bar associations and has served on the Board of Directors of the Colorado Trial Lawyers Association for more than twenty years in total. Over the years, Kyle has achieved justice for many clients. He has served on numerous committees and repeatedly won recognition from his peers at both the state and national level. He is proud of the role he has played in the passage of state and national legislation to protect consumers and is a frequent speaker and guest lecturer.
