You’ve had your car for years. It’s been reliable, safe, and efficient for its tenure, and you wouldn’t dream of trading it in for a newer model. It still runs well, is in peak condition, and—as an added bonus—you just paid it off. With relatively low miles and your extended warranty, you foresee a nice future with this particular set of wheels.
One day as you’re driving, however, a car sideswipes you in heavy traffic. You weren’t hurt, but your car did suffer damage down the entire passenger side. You notify the insurance company of the accident, and it is agreed that the other driver is completely at fault. Then you get the news—your car will be totaled.
The insurer informs you that the cost of repairing the damage is worth more than the current value of your car, and offers you compensation for the loss of your car. Surely the vehicle you cared for so meticulously is worth more…right?
The insurance company determines whether or not repairing your vehicle is “worth it” by comparing the cost of repair to the actual cash value of your car. This amount is typically decided upon by referencing the Kelley Blue Book, which looks at what cars similar to your own are selling for based on:
- The year, make, and model of your car
- Your car’s mileage
- Your geographic region
- The car’s condition
The Kelley Blue Book does not take into consideration, however, several important things that could impact the value of your car, such as newly-replaced parts and improvements. It is not uncommon for insurance companies to offer you less than your car may be truly worth, or to overestimate the cost of needed repairs. It is important that you present the estimates made by a repair shop you trust to ensure that you receive a solid offer either way.
After your accident, an attorney can help you navigate the complex settlement and compensation process. To learn more about the post-accident process in New Jersey as well as your rights after another driver has negligently injured you, contact my office today via live chat or phone.
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