Recovering compensation to pay for the repair or replacement of your vehicle after a car accident in Phoenix, AZ, requires you to prove the value of your vehicle. The at-fault driver’s insurance company may accept your property damage claim and offer you a payout amount. But how did they come up with this number?
Arizona Relies on a Total Loss Formula to Determine If Your Car Gets Totaled
In Arizona and in more than a dozen other states, a total loss formula (TLF) is necessary to determine the value of your car, and to see if your car will cost more to repair than it is worth. Using a total loss formula, the at-fault driver’s liability insurance company representative will look at the estimate from your repair shop or an estimate from their adjuster.
They will add the scrap value of your vehicle to this total. Then, they will compare this to the actual cash value (ACV) of your car as it was before the accident. If the car is worth more than the cost to repair it, they should payout to cover the repair costs.
If the value of the vehicle is not worth as much as repairs cost according to the TLF, they will dispose of your vehicle and should pay out replacement value. Whether their offer includes an accurate replacement price for your vehicle depends on how they determine the ACV.
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Insurance Companies Each Have Their Own System for Calculating ACV
Actual cash value is how much the car was worth as it was in the moments before the accident. While this may seem fairly straightforward, calculating this value is not always easy, and our attorneys rarely agree with an insurance company about the value of our client’s vehicle.
When you have an accident and contact the at-fault driver’s insurer, the insurance company will send an adjuster to evaluate your vehicle. They will look at a number of factors, including:
- Trim and options
- Overall condition
- Any additional factors that may significantly impact the price
Once the insurance company has this information and the details they need, they will enter it into the proprietary software they use to calculate ACV of vehicles. This computer program will give them what they consider to be the replacement value of your vehicle as it was at the time of the accident.
When we take on a car accident case, we also do our own calculations. We use a formula to determine the value of your car after a car accident in Phoenix, AZ that looks at current prices for the same make and model in a similar condition in Phoenix. If you trust us with your case, we will determine what we believe to be a fair settlement value and fight for a fair settlement on your behalf.
You May Be Eligible to Pursue a Diminished Value Claim
In some cases, your vehicle suffers significant damages, but the insurance company does not total the car. When this happens, you may qualify to not only recover repair costs but also file a diminished value claim.
We can help you pursue a diminished value claim by calculating the difference in your car’s actual cash value and its value following repairs. While your car may look like new, it will lose value because of the accident and subsequent repairs.
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A Zanes Law Car Accident Attorney Will Fight for a Fair Value for Your Car
When you did not suffer injuries and only have property damages to deal with, it may be tempting to handle your own claim for your car accident. However, it is important to understand how the insurance company comes up with what they consider fair value for your vehicle and what you can do to counter it. You may want to consider letting an attorney review any offer they make before you sign anything.
When you trust Zanes Law to handle your car accident case, we will put an accurate ACV on your vehicle and fight for a just settlement to cover your losses. We will reserve the right to take legal action on your behalf if necessary.
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Talk to a Car Accident Attorney in Phoenix, AZ, Today
If you suffered injuries or property damages in a Phoenix, AZ, car accident, the team from Zanes Law can help you pursue the damages you need to cover your medical bills, car repair or replacement, and more. We offer free case reviews, either over the phone or in a location that works best for you. We often meet clients at their home or in an area hospital.
You can sign up over the phone or during our initial meeting, and we can get to work for you right away. Call (833)-890-8329 today to schedule your complimentary consultation before the statute of limitations expires.
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