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| Car crash |
Car accidents always leave you with various hefty bills, from your medical bills to repair costs. Besides the money you have to pay towards your bills, you might have to deal with the loss of wages when you cannot return to work due to your injuries and the emotional trauma they experience can have on you.
Suppose that you were driving a car that you bought through an auto financing loan, you had yet to complete making all the payments on it, and a car accident entirely totals your car. In that case, it is unlikely that your insurance policy will cover the entire accident. You may need additional help to cover the losses you have incurred in this traumatizing accident.
But the question is: What are your options when dealing with a car crash in a vehicle you have not yet paid off being totalled?
Many people in similar circumstances are unsure about how to proceed and their options when dealing with the aftermath. Working with experienced Miami car accident attorneys can help you identify the best course of action in such a scenario.
This post will guide you to understand how to deal with such a situation, so you know what to expect when working with a Miami car accident attorney after an accident.
Did Your Insurance Company Deem Your Car A Total Loss?
A total loss declaration by an insurance company comes when the estimated expenses to repair the car are higher than a set percentage of your car’s worth. While the cut-off percentage can vary from one insurance company to another, 80% is the likeliest amount. Unfortunately, you also have to factor in depreciating value. Automobiles lose their value over time, and some lose it more quickly than others.
Suppose that you have a relatively new car worth $10,000 and it was involved in a car accident. The insurance company will consider it a total loss if the repair costs are higher than $8,000. If the expenses to repair the car are lower than $8,000, your insurance company will handle the repairs within your policy.
If the insurance company deems your car a total loss, it will write you a check valued at the amount your car is worth to help you pay it off. It is unfortunate, but you have to pay off your car loan even if your car is no longer salvageable.
Getting a check from your insurance company for a total loss can be a little beneficial for you if you do not have a lot more left to pay off your auto financing loan. You can end up with some spare change after paying off the remaining value of the loan. In such situations, you can use the additional money left over to put towards securing a loan for a new vehicle.
Consider Using Gap Insurance
Not many people have gap insurance policies in their name. It would be the perfect time to cash in on the policy if you had the foresight to get gap coverage. Gap insurance is a type of coverage that helps policyholders pay off the remaining amount on their auto financing loan for their vehicle totalled in car accidents, and they owe more than the value.
Suppose that you bought your car with the optional gap insurance, your car was worth $20,000, and you still owed $14,000 after a few years of making your payments towards the loan when the car was totalled in an accident. In that case, your insurance policy will cover the value of the car. Let’s say that the value of the car after a few years was $12,000. After you use the check from your insurance company to put towards paying off the loan, you will have to come up with $2,000 left to pay off the debt.
If you do not have gap coverage, you will need to pay the remaining $2,000 out of pocket. If you have gap insurance, you will not need to worry about the remaining amount.
Consider Filing A Lawsuit For Additional Compensation
Suppose that you do not have gap coverage and need additional help to cover the cost of paying off the loan. In that case, you can consider working with an experienced car accident attorney to explore the option of filing a lawsuit. Your lawyer will most likely negotiate with your insurance company to help you get a fairer amount in compensation. If that does not work out, your lawyer might suggest suing the other driver in a personal injury claim outside Florida’s no-fault system to cover the losses.
However, Florida’s no-fault system is complex, and not all cases qualify to move out of it. Florida considers all the drivers involved in a car accident at fault for causing the crash, and they have to work with their own insurers to secure financial help. It might be possible for you to explore filing a lawsuit against the other driver. However, a lawyer can help you determine whether it would be the best course of action to seek extra compensation in your case.
Speak To Trusted Car Accident Lawyers
It is no secret that you can expect to contend with a mountain of bills after a car accident. The last thing you want to worry about when your car is totalled is paying off the rest of the auto financing loan. While paying the car off will be necessary, there are legal avenues you can explore to minimize the cost to yourself.
If you have been involved in a Florida car accident that totaled your car and have not finished paying it off, consider contacting Frankl Kominsky Injury Lawyers. The team of Miami car accident lawyers has a track record for getting desirable outcomes for its clients.
Experienced auto accident attorneys often work on cases where their clients have not yet paid off their car and seen it totalled in a crash. With their knowledge of Florida’s legal system and expert negotiation skills, the right attorney can identify reasonable solutions to help you get additional compensation in your car accident case. Working with lawyers who have dealt with cases like these with successful results in the past is essential to secure the greatest chance of success in getting your rightful compensation.
