Consequences of Your Vehicle Being Declared A “Total Loss” Following A Motor Vehicle Collision

Following a motor vehicle collision which you were involved in, you will most likely be finding yourself in a situation in which you need to file a claim with your insurance company in order to receive compensation for your losses. As a result of this claim, an investigation is conducted with the purpose of obtaining information surrounding the accident for your insurer.

Throughout this investigation, your insurance company will determine whether it makes financial sense for your vehicle to be repaired or whether it should be determined a so called “total loss”. Is the latter the case, then your insurer will set out to obtain the current market value of your destroyed vehicle in order to offer you monetary compensation for the loss.

Given the business-like nature of insurance companies, you may not be surprised to hear that their assessment of a car’s value is oftentimes, inaccurate and far below the actual value of your now destroyed vehicle. In order to obtain fair compensation, it may be wise to conduct your own investigation or hire a Personal Injury Lawyer in Oakville and uncover the true value, in order to dispute the offered amount. Should this still not lead to a satisfying outcome, you may even have the option of filing a lawsuit against your insurer over this matter.

How Insurance Companies Conduct Their Research

Once your claim has been received, your insurer will begin their investigation into the current market value of the make and model of your car which was destroyed during the accident. They will do this by researching the price it is currently sold for on the market. Unsurprisingly, they generally only include the lowest prices in their estimation and forgo the higher ones available.

As a result, the compensation offered to you will be far lower than what your car would have been worth if you sold or bought it right now. Their finding will generally be transferred to you in the form a report which lists available vehicles of the same make and model as yours around the area, together with the monetary amount they are willing to offer as compensation for your loss.

Necessary Steps To Disputing Their Findings

1. Closely review their report
2. Conduct your own investigation
3. Request a higher, more appropriate payout
4. Should Step 3 fail, file a claim

If the latter is necessary, you will most likely end up with your claim going to the small claims court. Prior to your court hearing, it would be wise to obtain a lawyer who can inform you of the extend of your rights and help you be properly prepared.