What Drivers Need To Know About Salvage Value After An Accident

Dealing with the aftermath of a Florida car crash is often stressful, especially when your car is significantly damaged. If this is true for you, a key consideration you could encounter during the insurance claim process is the salvage value of your vehicle.

To protect your finances today and into the future, talk to a seasoned Miami personal injury lawyer about what salvage value is, how it affects your insurance payout, and what strategies will assist you in navigating this challenging time more effectively.

Determining the Salvage Value of a Vehicle

Salvage value refers to the estimated amount an insurance company can recover by selling your damaged vehicle to a salvage yard. Should your car be declared a total loss after an accident, an insurance company will go through the process of determining if the cost of repairs exceeds the car’s actual cash value (ACV) or if the vehicle is simply not safe to repair. If so, the insurance company pays you the ACV of your car, minus your deductible and the salvage value.

The salvage value is typically calculated based on the market demand for the car’s parts and the overall condition of the vehicle. Of course, every situation has its own factors that can influence a car’s salvage value, such as the following.

• Make and model. There are situations where certain makes and models have parts that are in higher demand, which can increase the salvage value.
• Age and mileage. Older cars with high mileage generally have lower salvage values due to wear and tear.
• Damage extent. The more damaged the car, the less valuable it is to salvage yards, which lowers the salvage value.
• Market conditions. Current market conditions and the availability of similar vehicles can also impact the value of a damaged car.

Then, for example, if the actual value of your car is $10,000, your insurance deductible is $500, and the salvage value is determined to be $1,500, the insurance payout calculation would be $10,000 minus the $500 deductible minus the $1,500 salvage value. This means the final payout you would be eligible to receive from the insurance company would be set at $8,000.

Options for a Total Loss

After your car is declared a total loss, you generally have two options. One, you can accept the insurance payout. Then the insurance company takes possession of the car and sells it to a salvage yard. Or, you can choose to keep the damaged car, but you need to keep in mind that the car may not be road safe again, even with repairs.

If you have recently been informed your car is likely totaled and you find yourself overwhelmed or unsure about next steps, connect with Miami personal injury lawyer. Consulting with a talented attorney can provide the guidance and support you need to navigate your claim and protect your rights.

Could you keep your car? Share your post-accident goals with the attorneys at Spencer Morgan Law. Call 305-423-3800 to book a confidential consultation.