what type of lawyer do i need if a barrowed vehicle was totaled

by Mr. Ahmed Kozey 9 min read

What if I owe money on a totaled vehicle after an accident?

Nov 18, 2021 · If your vehicle was totaled in a car accident, an experienced car accident lawyer will thoroughly explain the options that are available to you and ensure that you receive the …

How does a power of attorney work in a car accident claim?

Do You Need a Lawyer? If your vehicle has been labeled a total loss after an accident, it might make sense to discuss your options with an experienced attorney, especially if you've also been injured or there are other accident-related loose ends to tie up. Learn more about getting a lawyer's help after a car accident.

What does it mean when a car is totaled?

If you've totaled your car in an accident, it might make sense to talk to an experienced car accident lawyer. Sometimes insurance companies underestimate your car's fair market value. A lawyer can help you understand your options and will negotiate for a better settlement so you can pay off your car loan.

Do insurance companies need power of attorney to move a title?

In other words, the costs associated with repairing the vehicle are more than the total value of the car. If your vehicle was totaled in a car accident, an experienced car accident lawyer will thoroughly explain the options that are available to you and ensure that you receive the financial compensation to which you are entitled.

What Is a Totaled Car?

A "totaled" car is one that a car insurance company decides is a "total loss." Most states set a threshold for when an insurer must total a car. For example, state law might require an insurer to total a car when the cost to repair it is more than 75% of the car's ACV. In another state, the threshold might be as high as 100% or as low as 50%.

What Happens When You Still Owe Money on a Totaled Car?

If your car is totaled after an accident and you haven't paid off your loan, your options will typically depend on:

Talk to a Lawyer

If you've totaled your car in an accident, it might make sense to talk to an experienced car accident lawyer. Sometimes insurance companies underestimate your car's fair market value. A lawyer can help you understand your options and will negotiate for a better settlement so you can pay off your car loan.

What happens if you get totaled in an accident?

When your vehicle is totaled and you are hurt in an accident, a number of issues can get between you and recovering the compensation you need. If the other driver was uninsured/underinsured or you cannot reach an agreeable settlement with the other driver’s insurance company, speak with a lawyer about your right to head to court. However, a lawsuit will take longer. It is not something to jump into lightly. For skillful help in handling your insurance claim, contact Staver Accident Injury Lawyers, P.C. at (312) 236-2900 or contact us online.

What to do if you are in an accident?

If you are in any type of accident, get the other driver’s contact and insurance information, specifically the auto insurance provider and policy number. When another driver is responsible for the accident, you will need to make a third-party claim against their policy . If your vehicle is totaled, you will need to fight to get as much money from the policy as possible to ensure you can purchase a new vehicle for you and your family.

Can you keep title of car after totaled in Illinois?

In most circumstances, you are not entitled to retain title of your vehicle once it has been deemed totaled. Illinois law only lets you keep your totaled vehicle if it has hail damage and can still be safely operated or if it is nine model years or older. If the insurance company takes ownership of your vehicle, it will sell it for salvage.

Can you pay off a car loan if it is totaled?

If you have an existing auto loan on the totaled vehicle, you must pay it off. The loan is not forgiven because the vehicle is irreparable. If your loan is less than the market value of your vehicle, then the insurance settlement should be enough to pay it off. However, if your loan is more than the cash value of your vehicle, then you are still responsible for the remainder. You must pay out of pocket unless you have GAP auto insurance, which can cover this difference.

What is a totaled vehicle?

What Is a "Totaled" Vehicle? Sometimes a vehicle is so seriously damaged in an accident that it is determined to be beyond repair, and the car insurance company deems it a "total loss.".

How to determine the value of a totaled vehicle?

In a vehicle damage claim after a car accident, the value of a totaled vehicle is determined using the "actual cash value" or current or fair market value. Several factors go into calculating the fair market value, including the vehicle’s make, model, age, condition, add-ons, and mileage.

How to check if you have gap coverage?

First, check your car insurance policy to see if you have gap coverage. If not, you should contact your insurance agent and look into purchasing gap coverage to avoid a situation where you have to pay the remainder of a loan on a totaled vehicle. Second, if your vehicle has been totaled, try to calculate the fair market value yourself, ...

What happens if you total your car?

If you've totaled your vehicle, then your insurance company will typically issue you a check for the value of your car before it was damaged in the accident. If you financed your vehicle, the check will be made out to both you and the lien holder (whoever issued you the car loan).

What happens if you owe money on a car loan?

If you financed your vehicle, and you still owe money on your car loan, you are still obligated to pay that loan even if you can no longer use the vehicle. Luckily, there are ways to protect yourself against this situation. Read on for the details. Guaranteed Asset Protection, more commonly known as “gap coverage,” can help bridge ...

What to do if your insurance is insufficient to pay off your car?

Third, if your insurance settlement is insufficient to pay off your car loan, consider contacting your lender to discuss repayment plans. Just remember that, although your vehicle is totaled, your obligation to pay your loan continues.

Can you pay off a car loan if you lose it?

The answer is, unfortunately, yes. Even if your car is deemed a total loss and you can no longer use it, you are still responsible for paying any balance left on the car loan. There is, however, one way to avoid having to pay the remainder of your car loan. Guaranteed Asset Protection, more commonly known as “gap coverage,” can help bridge ...

Your Rights if Your Vehicle is Totaled & You Are Not At Fault

No matter how serious the accident, accident victims are often unhappy because they find that an insurance company is unwilling to pay a fair amount for the damage to their vehicle. Many accident victims also find themselves upset at how they have been treated by the insurance company in the post-accident process.

How long should I expect to wait before the insurance company helps me?

If your car is a total loss, the law assumes that the auto insurance company will quickly come to your door with a check for the fair market value of your vehicle plus tax, title, and license allowing you to go out and purchase another car.

How much does the insurance company owe me for my vehicle?

Now that your car is a total loss, what are you entitled to receive? You are entitled to the fair market value of your car as determined by the insurance company.

We have 40 years of experience helping accident victims in these circumstances

For nearly 40 years, the personal injury attorneys of Roberts and Roberts have fought to protect Texas consumers against the negligence of other drivers and their auto insurance companies.

Free Consultation

You have nothing to lose by letting our attorneys advise you of your options. For a free, immediate attorney review of your case, contact us using the form below or call us at (903) 597-6000.

What Happens After Your Car Is Totaled?

It gets a little dicey with a car totaled cash value when dealing with insurance adjusters.

How Much Time Does It Take to Get a Car Totaled Insurance Check?

When you do not have a vehicle, it negatively affects every aspect of your life. From kids to jobs to school, America is a place that runs on personal transportation.

What Happens to a Car Totaled that Is Leased or Financed?

The complexities of receiving benefits increases if the car totaled was leased or financed. The thing is, you do not hold the title to the vehicle under these circumstances.

Need Help After Totaling Your Car and Suffering Accident Injuries?

There is not much that anyone can say when the decision is made that your vehicle is no mas. It is a matter of financial interest, but more importantly, it concerns public safety.

What happens when an insured vehicle is totaled?

When an insured vehicle is totaled, the insurance company is basically forced to "buy" the vehicle from the owner. The amount they pay is the amount of compensation the driver receives, minus any fees, taxes, etc.

Why do insurance companies ask for power of attorney?

Insurance companies ask for power of attorney in order to legally move the vehicle's title without having to get the owner's explicit permission each time the company needs to fill out a form, or so the company can sell the totaled vehicle to a salvage yard to compensate the driver.

What happens if a car is ruined?

If their vehicle is completely ruined in a car accident, they will have to work with their insurance company to get their total loss claim processed. The process of getting compensated by an insurance company for a wrecked vehicle often involves the driver giving the insurance company some form of power of attorney.

Who can make decisions on their own?

When it comes to legal, financial, and health matters, individuals are generally the only ones who can make important decisions on their own behalf. When an individual legally gives another person or entity the ability to make binding decisions for them, they are giving that entity or person power of attorney.

Does a power of attorney cover car insurance?

Additionally, the power of attorney granted to insurance companies is generally limited and covers only the necessary activities for fulfilling a car insurance claim.