When your car is involved in a collision and is severely damaged, it costs a lot to repair. If this repair cost meets or exceeds a certain percentage of the car’s market value before its accident, the car is declared a total loss.
For instance, suppose you have a $57,000 car that recently crashed. Before that accident, your car’s market value was $55,000, due to wear and tear and depreciation caused by regular usage over the year. The fixed percentage is 50%. So, if your car’s repair cost matches or exceeds $27,500, it will be a total loss. This also refers to a car being totaled, which means there is no use in repairing the vehicle anymore.
The fixed percentage that indicates if a car is a total loss is called the Mississippi total loss threshold. This fixed percentage is set by the government and varies depending on the states. Some states have a 75% total loss threshold while others have 65%.
An ACV or Actual Cash Value of a vehicle refers to the market value of a vehicle before it had the accident and is used to determine if the car is a total loss. For instance, if your vehicle was worth $55,000 immediately before its accident, this is the ACV of your car. If your vehicle is totaled and you apply for an ACV settlement, the insurance company will pay you $55,000, and not the price you paid to purchase it.
After the car crashes and is declared a total loss, it still has some value without being repaired. This is the salvage value of your car; for example, if your car’s value is $5,000 after a major accident, this is the salvage value of your vehicle.
In Mississippi, a vehicle is declared a total loss when its repair cost after an accident equals or exceeds its actual cash value; however, it is pretty complex.
According to the Mississippi total loss guidelines, if your car’s repair cost is equal to or exceeds its ACV, the vehicle is a total loss. For instance, your vehicle was worth $55,000 immediately before the accident took place. If its repair cost is $55,000 or more, the car is a total loss; otherwise, it’s not.
Some insurance companies use TLF (total loss formula) to determine if a car is a total loss or not. It includes subtracting the salvage value of your vehicle from its actual cash value.
The determination of whether your car is a total loss or not can vary slightly due to the insurance company’s policies and specific details of the damage.
If a car owner disagrees with the insurance company’s valuation and the offered settlement offer, they are free to challenge and request a fairer settlement.
The process of claiming a total loss threshold in Mississippi is very complex; we break it down in simple terms in the following steps.
After an accident, immediately call your insurance company to let them know about it.
Share the details about the accident and the extent of the damage, along with supporting documents like photos and repair estimates.
The insurance company will send an adjuster to assess the car’s damage and evaluate it.
The adjuster will likely use an auto loss calculator to determine if the car is a total loss using the vehicle value of time in Mississippi.
When the vehicle is declared a total loss according to Mississippi total loss guidelines, the insurer will offer you a settlement amount. You can either accept the offered amount or challenge it and negotiate for a fairer settlement.
If you accept the payout, the insurance company will issue a salvage title for your car. It’s a certificate of destruction in Mississippi that indicates your vehicle is no longer eligible to run on roads.
After your car is titled salvage, you can keep it or relinquish its ownership to the insurance company. If you keep the car, you must repair it and undergo a driving test to prove the vehicle is still in good condition and can be driven on the roads. If you don’t keep the car, the insurance company will take it and sell it to a salvage yard.
The insurance company will notify the Department of Revenue about the total loss claim and the salvaging of the vehicle.
You can use 2 methods to get a fairer settlement amount for your vehicle.
You can hire an independent appraiser for a detailed appraisal report of your car. This will help you present a strong case and negotiate for a higher settlement amount.
Hire an attorney experienced in car accident cases; they will handle your case and help you get the best settlement amount from the insurance company.
We are ADR Claims, helping others with detailed and accurate appraisal reports. So, you can recover a fairer settlement amount for your damaged vehicle. From appraisal clause, heavy equipment appraisal, to lease return inspection, we. We offer multiple services at affordable prices.
Our quick and simple appraisal process can help you recoup vehicle-related losses.
