When a car is heavily damaged in an accident, and its repair cost is equal to or exceeds a certain percentage of the vehicle cash value before the accident, the vehicle is considered a total loss. If your car is worth $13,000 before the accident, 50% is the set percentage limit, and if the repair cost is more than 50%, the vehicle will become a total loss.
The total loss threshold in Kentucky is the percentage at which a car is deemed a total loss. This percentage can vary depending on the state and is 75% in Kentucky. So, if your car’s repair cost is more than 75% of its actual cash value, the insurance company can title your vehicle a total loss.
ACV and salvage value are two terms you must know to learn about the total loss threshold in Kentucky.
ACV stands for the actual cash value of the vehicle and is the market value your car had before its accident. When you file a total loss threshold claim and receive the payment, it’s called the ACV settlement. A car’s ACV is affected by several factors, including the vehicle’s age, mileage, market demand, and many other things.
After your car is declared a total loss, the damaged vehicle will have some remaining worth that people would pay for. The leftover market value for the car is its salvage value.
Here are a few things about the Kentucky total loss threshold laws that will help you better understand the process:
The total loss threshold limit in Kentucky is 75% of the market value for the vehicle before its accident.
The car’s retail value for the 75% rule is determined by the NADA (National Automobile Dealers Association) guide.
The actual cash value for the vehicle is calculated using market research and sales comparison to establish a fair market price for the car.
As per Kentucky total loss threshold laws, repair parts, and labor costs are both included in repair costs, and if it reaches or exceeds 75%, the car is deemed a total loss.
The insurance company decides whether a car is a total loss or not. The company uses repair estimates and the set total loss threshold limit to make the decision.
After a car is totaled, its owner receives the actual cash value for the vehicle minus its deductibles, and the car is titled salvage.
If you are confused about how to file a total loss threshold claim in Kentucky, we break down the process in the following steps:
After the accident, you first need to assess the car yourself and check how much damage it has.
In the second step, you need to collect all the documents related to your car. These documents include the car’s RC, photographs of the damage, repair estimates, insurance documents, and other related documents. These documents will serve as evidence and help you present a strong case for a fair claim settlement.
Then, you need to contact the insurance company and let them know about the accident. You should also call the police for an investigation.
Following your call, the insurance company will send an adjuster to inspect the vehicle and determine its extent of damage.
The insurer will then determine the actual cash value for the vehicle using the NADA guide. It is the fair market value for the vehicle before its accident.
If your car is declared a total loss, the insurance company will offer you a settlement amount based on ACV minus deductibles.
Once the car is deemed a total loss, the insurance company issues a salvage title for it. You will need to apply for the title within 15 days after your car is declared a total loss.
The insurance provider will most likely offer a low settlement amount. So, how to get a fair settlement? There are 3 ways to do it:
First of all, don’t accept the first settlement you are offered. Instead, you should negotiate for a higher amount, as you are offering all the documents.
If your insurance company denies giving a higher settlement, hire a professional appraiser. They will inspect the car and provide you with its detailed appraisal report. You can present this appraisal report to the insurance company and demand a higher settlement.
It is the final solution! You can hire an attorney, and they will handle the case for you and help you receive the best possible settlement.
We are ADR Claim, an independent professional appraisal company devoted to helping you get the best settlement amount for a total loss threshold claim in Kentucky. We assess your car with care and provide you with a detailed appraisal report that consists of the accurate market value of your damaged car. We also teach you about the claim settlement process, making it easier for you.
From inspections to appraisals, we offer various services with full dedication and have years of experience in this field. So, if your car is declared a total loss, don't worry, because we are here to help you. Call us for a free quote now!
Our quick and simple appraisal process can help you recoup vehicle-related losses.
