FIVE THINGS TO KNOW FOR A TOTAL LOSS CLAIM

• Legally, if the cost to repair is more than 65% of the car’s value, it is a total loss;
• The cost of painting the vehicle is not included in the repair cost for total loss purposes;
• The cost of replacing electronic components in accordance with the specifications of the manufacturer does not count toward the repair cost for total loss purposes;
• Although you may get to decide whether or not your car is a total loss, you have the right to argue the total loss call with the insurance company;
• The fair market value of the vehicle is not a set number and is negotiable. The insurance company may try to tell you it’s not negotiable;

The insurance company may often tell you your car is a total loss and that you have no choice.  However, if you believe your vehicle can be repaired and you do not want to have your vehicle assessed as a total loss, you have the right to challenge this decision.  One of the most common misconceptions that we see in our office is what the meaning of total loss is in the context of an auto accident. Clients often think that total loss means they will get a new car. Unfortunately, that is not the reality.

Total loss claims can be difficult. The total loss of the vehicle often places an already injured victim in a very difficult predicament. The total loss of a vehicle does not mean that you receive a new car. It only means that you receive the fair market value of the vehicle that you owned. Often times, clients are even upside down in their vehicle meaning that they owe more than the vehicle is worth. If you do not have gap insurance on the vehicle, this means you could wind up with a car payment and no car. This is a position that we at TheOneLawyer.com desperately try to avoid for our clients. In those type of situations, we will vigorously argue the total loss assessment. Obviously, sometimes a vehicle is so violently damaged that there really is no choice but to call it a total loss. However, often insurance companies would rather assess a total loss then to attempt to repair and run the risk of finding additional damage once the repair has begun. For this reason, it is important to work with a stellar body shop and attorney to prevent being in the situation of having no vehicle and an outstanding car loan. Under Nevada law if the cost of repairing the vehicle exceeds 65% of the fair market value of the car it is considered a total loss by state law. In the state of Nevada, whether a car is a total loss is governed by Nevada Revised Statute 487.790. Specifically, NRS 487.790 states as:

 

NRS 487.790  “Total loss vehicle” defined.

1.  “Total loss vehicle” means a motor vehicle:

(a) Of a type which is subject to registration; and

(b) Which has been wrecked, destroyed or otherwise damaged to such an extent that the cost of repair is 65 percent or more of the fair market value of the vehicle immediately before it was wrecked, destroyed or otherwise damaged, except that, for the purposes of this paragraph, the cost of repair does not include the cost of:

(1) Painting any portion of the vehicle;

(2) Replacing electronic components in accordance with the specifications of the manufacturer; or

(3) Towing the vehicle.

2.  The term does not include:

(a) A nonrepairable vehicle;

(b) A motor vehicle which is 10 model years old or older and which, to restore the vehicle to its condition before it was wrecked, destroyed or otherwise damaged and regardless of cost, requires the replacement of only:

(1) The hood;

(2) The trunk lid;

(3) A fender;

(4) Two or fewer of the following parts or assemblies, which may be bolted or unbolted:

(I) Doors;

(II) A grill assembly;

(III) A bumper assembly;

(IV) A headlight assembly; or

(V) A taillight assembly; or

(5) Any combination of subparagraph (1), (2), (3) or (4);

(c) A motor vehicle, regardless of the age of the vehicle, for which the cost to repair the vehicle is less than 65 percent of the fair market value of the vehicle immediately before the vehicle was wrecked, destroyed or otherwise damaged, except that, for the purposes of this paragraph, the cost of repair does not include the cost of:

(1) Painting any portion of the vehicle;

(2) Replacing electronic components in accordance with the specifications of the manufacturer; or

(3) Towing the vehicle; or

(d) A motor vehicle that was stolen and subsequently recovered if the motor vehicle:

(1) Has no structural damage; and

(2) Is missing only tires, wheels, audio or video equipment, or some combination thereof.

3.  For the purposes of this section, the model year of manufacture is calculated based on a year beginning on January 1 of the calendar year in which the damage occurs.

(Added to NRS by 1995, 1573; A 2003, 1911; 2005, 1245; 2011, 1663)

 

There is a lot of room for negotiation and argument within the terms of the statute. First, fair market value is always arguable. In order to determine what the fair market value of the vehicle is you can locate as many of the same vehicles for sale, referred to as comparables, to determine the sales prices.  The bluebook is really no longer effective in determining fair market value. With the Internet fair market value is determined by the for sale of comparable vehicles.

Once the fair market value has been determined, there are qualifiers Built into the statute is the total loss statute regarding paint repair and component parts. This is an area that insurance companies often ignore. The cost of all paint repairs can be deducted from the repair estimate for purposes of the 65%. This  can swing the value as to whether or not is a state loss under state law.

In addition to deducting the paint costs, many electronic component parts that may need to be replaced on your vehicle can also be deducted from the total loss repair cost in determining whether it’s a total loss. This is because replacing a part with a used part is just as effective and does not deter from the value of the vehicle or the integrity.   These parts generally include starters, alternators, batteries, power windows, power steering, headlights and other exterior lights, windshield wipers, defrosters, air conditioning systems, computerized engine diagnostics, cooling system repair & services, emissions repair, Fuel system injectors, fuel pumps & lines, and even water pumps.

What this means is that if the cost to repair your car is more than 65% of the fair market value of the vehicle, excluding the cost of paint repairs and component parts, it must be declared a total loss by state law.  As noted above, even though this definition may seem clear on its face, there are a lot of variables. These variables include determining what will be the actual cost to repair the car and deducting the appropriate exclusions under the statue.

CONTACT TheOneLawyer.com IF YOUR VEHICLE IS TOTAL LOSS

By contacting a lawyer immediately, you can receive the most money for your vehicle. At my office, we are happy to handle the total loss of your vehicle at no cost along with your personal injury claim.  Having worked in the insurance industry as an attorney for 9 years before opening our boutique law firm specializing in helping injured people, I reviewed thousands of total loss claims.   With extensive experience in the insurance field, I can help you review your total loss to maximize the money you get for your vehicle.

At TheOneLawyer.com, we are here to serve our community and provide legal services in the Henderson and Las Vegas area. We are a boutique law firm providing experienced and personal representation to injured clients.  At the Law Offices of Laura Payne-Hunt, TheOneLawyer.com we provide professional and personal service to each and every one of our clients on various legal matters and have over 15 years of experience in reviewing insurance policies and in Nevada insurance law.   If you have a question regarding any type of personal injury or paying your medical bills from an accident, please do not hesitate to call the offices of TheOneLawyer.com and speak directly to attorney Laura Marie Payne-Hunt, Esq. a Henderson Injury Attorney for over 15 years.  Laura is recognized as one of Nevada’s Top 100 Lawyers.  She has the experience and knowledge to obtain the maximum settlement you deserve.  Please call our office if you or a loved one is injured.  We can make sure that you receive the care you need and deserve and advise on how to preserve evidence.

At our office, we are experienced in helping injured victims get the compensation they are entitled to.  Insurance companies never have the best interest of the injured person at the top of their priorities.  They want to pay as little on every claim as possible.  Having worked for an insurance company as an attorney for 9 years before opening my boutique law firm specializing in helping injured people, I have reviewed thousands of auto accident claims and policy provisions.

At the Henderson and Las Vegas Accident injury law offices of TheOneLaweyer.com, Laura Marie Payne-Hunt and her staff are here to help you and your family in the event that accidents and tragedies occur.  For any of your legal needs, do not hesitate to contact our Henderson and Las Vegas Accident injury offices.  TheOneLawyer.com is a boutique, family-owned law firm that specializes in helping injured people and the community of Las Vegas and Henderson Nevada with legal issues involving auto accidents, wrongful deaths, slip and falls, truck accidents, injuries to children, bicycle accidents, dog bites, product liability claims, and all types of injury claims.  Please do not hesitate to call us anytime you have a legal question or you or a loved one has sustained an injury at 702-450-(HUNT) 4868 and text 24/7 at 702-600-0032.