Getting into a car accident is stressful enough without having to figure out what happens to your vehicle afterward. If the car accident was serious enough, there is a possibility that the car can be totaled.
So, what does a total loss vehicle mean? In simple terms, it’s when the cost to fix your car is so high that repairing it doesn’t make financial sense compared to the car’s value. While that definition may sound straightforward, the way it’s applied comes with specific laws that can directly impact your claim.
This law matters because it affects how much compensation you may receive from your insurance company after an accident. Understanding the SC total loss threshold can help you know what to expect and make better decisions about your next steps.
Our experienced York, SC car accident lawyer can help you understand what steps to take.
Understanding What “Total Loss” Means in a Car Accident
A vehicle is declared a total loss when the cost to repair it to its pre-accident condition is higher than its actual cash value (ACV).
The insurance company has determined that it is not financially sensible to pay for repairs.
Instead, they will pay you the value of the car as it was the moment before the crash occurred.
For example, imagine your car is worth $8,000 right before the crash. If the repairs will run $7,000, your insurer may decide it doesn’t make sense to spend that much on repairs. Even if the car could be fixed, financially, it’s considered a total loss.
South Carolina’s Threshold for Declaring a Vehicle Totaled
According to South Carolina Code of Laws § 56-19-480, a vehicle is legally considered a total loss if the estimated cost of repairs (including all parts and labor) is equal to or greater than 75% of the vehicle’s value before the accident.
This 75% rule is the official SC total loss threshold. If the repair estimate meets or exceeds this percentage, the insurer is required to declare the vehicle a total loss and process the claim accordingly, which typically involves issuing a salvage title.
Here is a practical example:
- Your vehicle’s Cash Value (ACV) before the accident is determined to be $20,000.
- The South Carolina total loss threshold is 75% of the ACV, which is $15,000 ($20,000 x 0.75).
- A certified repair shop estimates the total cost to fix the damage is $16,000.
In this scenario, because the repair cost of $16,000 is greater than the $15,000 threshold, your vehicle must be declared a total loss under South Carolina law.
How Insurance Companies Calculate Vehicle Value vs. Repair Costs
The entire total loss determination hinges on the accuracy of two key assessments: the vehicle’s value and the estimated cost of repairs. Understanding how insurance companies arrive at these numbers is critical for ensuring you receive a fair settlement.
Calculating the Actual Cash Value (ACV):
Insurance companies use sophisticated software and databases to determine a vehicle’s ACV. The process involves:
1. Market Analysis
The adjuster will pull a report of recent sales of comparable vehicles in your specific market. A “comparable” vehicle is one of the same make, model, year, and similar mileage and options.
2. Condition Adjustments
The adjuster will make specific deductions or additions to the base value based on your car’s condition. This includes factors like significant rust, prior unrepaired damage, excessive wear and tear on the interior, or the condition of the tires. A vehicle in exceptionally clean, well-maintained condition may receive a positive adjustment.
3. Feature and Package Valuation
The report will account for your vehicle’s trim level and any factory-installed options, such as a sunroof, premium sound system, or advanced safety features.
Review the valuation report the insurer provides. Ensure they have accurately listed all of your vehicle’s parts and have not made unfair deductions for its condition.
Estimating the Cost of Repairs
The repair estimate is a detailed, line-by-line breakdown of what it would take to restore your vehicle to its pre-accident state.
- Initial Inspection: An insurance appraiser or a body shop estimator will perform a thorough visual inspection of the vehicle to identify all visible damage.
- Parts Sourcing: The estimate will list every part that needs to be replaced. Insurers may specify the use of OEM (Original Equipment Manufacturer) parts, aftermarket parts, or even used/salvage parts, which can significantly affect the total cost.
- Labor Rates: The estimate includes the number of hours required for each repair task, multiplied by the shop’s hourly labor rate. This covers everything from removing damaged panels to painting and reassembly.
- Hidden Damage: Initial estimates often include a disclaimer for potential “hidden damages” that may only be discovered once the vehicle is disassembled. If a shop begins repairs and finds a bent frame or other unseen issues, the cost can rise, potentially pushing the vehicle over the total loss threshold.
Steps to Take if Your Car Is Deemed a Total Loss in York
If your vehicle is declared a total loss, the insurance company will make a settlement offer. Here are the steps you should follow:
The first step is to ask your insurance company for a copy of the valuation report. This document will show how they calculated your car. Look it over carefully to see if they missed anything, such as recent repairs, new tires, or special features.
Next, gather your own evidence. Check local listings for similar cars being sold in York. Print out ads, collect receipts for maintenance, and compile any documentation that proves your car exceeds the insurance company’s valuation.
If you still disagree, you can request a review or even bring in an independent appraiser to give a second opinion. Sometimes, having another professional back you up can make the insurance company take your claim more seriously.
If you feel the insurance company isn’t fair, speaking with an experienced car accident lawyer in York can help you push back and fight for a better outcome.
Contact an Experienced York, SC Car Accident Lawyer
After a car accident in York, you may find yourself dealing with insurance companies, repair estimates, and confusing legal terms. Insurance companies don’t always make this process easy.
They may undervalue your car or push you to accept a settlement that doesn’t reflect your vehicle’s true worth. The legal team at Hunter | Everage is here to help.
We understand the specifics of the South Carolina total loss threshold and know how to stand up to insurance adjusters to protect our clients’ rights. We will fight for the full and fair compensation you deserve.
If you were in a car accident in York, SC, and are dealing with a total loss claim, contact us at 704-377-9157 to request a free consultation to discuss your case.