- September 21, 2024
- Tucker Law
- Car Accident Lawsuits
Being in a serious car accident doesn’t just mean dealing with severe injuries. It can also mean totaling your car. If that occurs, you may feel helpless as to what your options are, especially if you are still paying on your car loan. If you’re in this situation, it’s important to know how insurance works with totaled cars and what you can expect from the process.
At Tucker Lawyers, our team of New York personal injury lawyers can help you understand what your rights are after an accident and what you need to do if you’ve totaled a car you were still paying for. We’ll guide you through the claims process.
Call Tucker Lawyers at (516) 399-2364 to schedule a free consultation
Understanding the Role of Gap Insurance
The Gap Between ACV and Loan Balance
Gap insurance, which stands for guaranteed asset protection insurance, is a type of auto insurance policy available in New York. It functions to cover the difference between the actual cash value (ACV) of the vehicle and what you owe on your car loan. Gap insurance only comes into play if the vehicle is totaled. One of the things our car accident lawyers always point out to clients is that gap insurance doesn’t cover the entire cost of a new car or car repairs or parts.
If you don’t have gap insurance, you would typically only receive the ACV of the vehicle at the time of the accident, minus your deductible. If the amount is less than what you owe, you’d be left to cover the rest. With gap insurance, you get coverage for the entire amount.
In New York, you can only get gap insurance if the car is less than three years old, you’re the original lease or loan holder, and you have both comprehensive and collision insurance on the vehicle.
Remember, you can only rely on gap insurance if the vehicle is declared a total loss. But what does that mean?
The definition of a total loss can depend on individual insurance companies, but in most cases, a vehicle is totaled when the costs of repairing it exceed a certain percentage of its value. The standard is around 80%. For example, if your vehicle is worth $10,000 and the repair bill would be $8,000, the insurance company would likely declare it a total loss. In that scenario, your gap insurance would pay you the $10,000.
Decades of experience make Tucker Lawyers qualified to represent you in a New York car accident claim.
Options If You Don’t Have Gap Insurance
If your car is totaled and you don’t have gap insurance, what are your options? For many people, the only way forward is to continue paying off the loan. It’s essential that you contact a car accident lawyer for help if that’s what you’re going through. This is especially important if you suffered serious injuries, because that gives you the chance to file a lawsuit if someone else’s negligent or wrongful actions led to the accident.
By filing a lawsuit outside of New York’s no-fault laws, you have a chance to claim additional damages, including non-economic losses like pain and suffering and loss of enjoyment of life. With these additional damages, you could pay off the remainder of the car loan.
Steps to Take After a Car Accident That Results in a Totaled Vehicle
It’s crucial to take the right steps after being in a New York accident that results in a total loss. These steps are especially important if you’re planning on filing a claim outside of the state’s no-fault laws.
The first thing you need to do after the accident is ensure you get medical attention. Call emergency services, even if you don’t think you’re seriously injured. Often, the shock of the accident can make it difficult to tell if you’re injured, so having professionals assess you is vital. This can also allow you to begin keeping a record of the injuries you suffered that your lawyer can rely on later when filing a lawsuit.
You then need to report the accident to the police. This is essential not only because the law requires that you do so, but also because you will need a police report for the claim. Make sure to offer the officer as many details about what happened as possible.
The next step is to exchange information with the other party and gather evidence from the scene to help show what happened. You will want to take pictures of the vehicles, the road, and even your injuries. If there were eyewitnesses, get their information, too, so that you have access to their testimony later on.
You then need to report the accident to your insurance company. Give a very basic outline of what occurred, and don’t mention fault. As soon as possible, hire a personal injury lawyer to start negotiations with your insurer or the at-fault party’s insurer.
Hire Experienced New York Car Accident Lawyers
Contact Tucker Lawyers for Help
Being in a car accident can leave you facing injuries, a totaled car, and financial distress. It can be even worse if your car is totaled and you don’t have gap insurance. However, there are things you can do to help yourself through this difficult time. The most important is to contact a personal injury lawyer who can help you get fair compensation.
At Tucker Lawyers, we have years of experience helping people through all types of personal injury claims. We will assess your case and start gathering evidence to demonstrate that you deserve compensation for your losses. Because one of the most complex aspects of these claims is negotiating with insurance companies, you need to have a team that will fight for you. That’s what we can do. With our years of litigation experience, we can also advocate for you in court.
Contact Tucker Lawyers by calling us at (516) 399-2364.
Managing Attorney John. J. Tucker, Esq.
John has personally handled thousands of clients who were victims of another’s negligence and fights relentlessly for their rights. John enjoys bringing closure to a client’s matter so that the injured party can move forward with their life. His background enables him to evaluate complex liability related claims and bring resolution to claims in a record time frame. [ Attorney Bio ]