Many concerns arise when you experience a car accident, including covering the costs of your auto repairs. As long as you have the proper insurance coverage, you should be able to cover all costs associated with your auto accident. You should consult with a Covington accident attorney at Dickman Law Office to ensure you receive all the coverage you should.

Determination of Damages

If your auto is severely damaged in an accident, the insurance company may decide it is a total loss. A total loss occurs when the car in not repairable or the costs associated with the repairs is more than the value of the car. If your car is deemed “totaled,” insurance will pay you the value of the car prior to the accident minus the deductible that your policy entails. If you have a loan on your car, you will be obligated to pay that loan in full with the money you receive. There are two ways to determine the value of your car, fair market value and replacement value. The method your insurance company uses will depend upon the coverage you have.

  • Fair market value – dependent upon the make, model, age and condition (pre-accident) of your auto along with depreciation. Insurance companies have a vast database to search the industry’s standards for fair market value.
  • Replacement value – this value is determined by the amount it will require to replace your car with a similar auto minus your deductible. Replacement value is usually greater than fair market value. Monthly premiums are higher for this type of coverage.

In addition to the settlement you receive if your car is totaled, your insurance policy can include gap coverage if you have paid for it. Gap coverage will pay any remaining balance on a car loan or lease if the settlement for a totaled car is less than what you owe on the car. Some auto dealerships sell gap coverage and most insurance companies offer it to their clients.

Covington Accident Attorney

If you are involved in an auto accident, it is in your best interest to enlist the help of an accident attorney. Dickman Law Office offers guidance throughout the claim’s process to protect our client’s rights and ensure they receive the settlement they are owed. Call today for a free consultation.