What Happens When Your Car is Totaled in Utah?

A violent car accident can easily damage a vehicle, causing shattered windshields, crumpled fenders, deployed airbags, bent frames, broken axles, and damaged engine components. But when the damage extends beyond cosmetic issues and compromises your vehicle’s structural integrity, your vehicle might be considered totaled. In this situation, you may be entitled to compensation that can help you purchase a new vehicle. If you have been in this situation, reach out to our car accident attorneys in St. George to learn more about your options.

When Is a Car Deemed Totaled After an Accident?

Insurance companies declare a vehicle “totaled” when the repair costs exceed the car’s actual cash value. Utah has a total loss threshold rule, which means that your vehicle will be legally considered a total loss if repair costs reach a specific percentage of your car’s pre-accident value. After an accident, your insurer will conduct a thorough inspection of your damaged vehicle before determining whether it is a total loss. This assessment considers multiple factors, including your car’s pre-accident condition, structural damage, and salvage value.

When insurers declare your car a total loss, they only pay the vehicle’s market value on the accident date. If you owe $15,000 but your car’s market value is only $10,000, you’ll still owe $5,00 on your loan despite no longer having the vehicle. However, other forms of insurance coverage can help bridge this gap, as long as they are valid at the time of the crash.

Who Pays for Vehicle Replacement After a Utah Car Crash?

Multiple forms of insurance coverage may pay for the cost of your totaled vehicle. Utah is a no-fault insurance state that requires drivers to carry personal injury protection (PIP) coverage, which pays for their own losses after a collision. However, PIP does not cover vehicle damage claims.

If another driver caused the accident, their property damage liability insurance should cover your vehicle’s replacement up to their policy limits. However, insurance companies only pay up to policy limits. If the at-fault driver caused $25,000 in damage to your car but carries only $10,000 in property damage coverage, their insurer will pay just $10,000. 

 If the driver’s policy limits don’t fully cover your loss or if you caused the accident, you will need to use your own collision coverage. This optional form of insurance pays for your vehicle damage regardless of fault, making it valuable protection despite its higher premium cost. 

How Can I Appeal the Insurance Company’s Decision?

If you disagree with the insurer’s valuation of your vehicle, you have several options: accept their offer, negotiate for a higher amount, or pursue legal action. To dispute the company’s decision, you will need evidence proving your car’s condition and value, such as photos showing your pre-accident state or documents showing upgrades or customizations made to the vehicle. You can also obtain a professional appraisal to determine your car’s true worth.

Trust We Win Injury Law to Fight for You

Dealing with a totaled vehicle can leave you feeling stranded—both literally and in your negotiations with insurance companies. At We Win Injury Law, we understand the frustration of inadequate settlement offers and the stress of being without reliable transportation. Our attorneys have helped countless Utah drivers secure fair compensation for their totaled vehicles and related damages. Contact us today at (435) 688-9558 for a free consultation and discover how we can help you get back on the road with the full compensation you deserve.