You are just thinking about how badly your car was damaged in the accident in South Carolina, and the insurance company declares your vehicle a total loss. It decides it by assessing the damage in the vehicle and determining if it is worth repairing. But how does the company do that? Well, they use Total Loss Threshold South Carolina and make a decision. Let us learn more to understand the state’s law regarding a total loss vehicle.
Not any car owner in South Carolina would want to be stuck in a total loss automotive situation. But accidents happen and come with different challenges. And sometimes, the damage is so extensive that it is beyond repair. Your insurance company evaluates the damage and decides if the vehicle is worth repairing or declaring totaled.
It uses the state’s rules regarding this situation, which is called the Total Loss Threshold. South Carolina uses a fixed percentage threshold which is 75%. If the fair market value of your car is exact or less than the repair estimate, the vehicle will be deemed a total loss.
But not all states in the US use the threshold method to determine a total loss vehicle. Some states, like Ohio or Illinois, use a total loss formula. It is the method that includes the total of repair cost and salvage value, which is compared with the ACV and suggests a total loss.
South Carolina does not use the total loss formula. Like New York, it applies the 75% Total Loss Threshold SC. A car insurance company uses this method to make the decision. They start the process by calculating the actual cash value, or ACV then the repair estimate. And, evaluate if the repair cost is equal to or more than 75% of the actual cash value. If the result is positive, they declare your vehicle a total loss.
On the contrary, if the repair cost is less than the set percentage, your vehicle will be repaired and ready to be back on the road.
Before we delve into the process of how the rule works, let us break down actual cash value and how it is determined:
Actual cash value is the worth of your vehicle right before the time of the accident. It is also known as pre-cash value or fair market value what an insurance company pays you for your damaged car minus the deductible. It is calculated based on some key aspects such as the condition of your car, its age, model, make, and upgrades.
Now, let us understand the 75% Total Loss Threshold SC with the help of an example:
Suppose your car’s value before the accident was $10,000.00. Now the repair estimate is $8,000.00, which exceeds the fixed 75% of its ACV. It means your car is a total loss.
After you know that your car is deemed totaled, you might be thinking about what to do next. Remember that taking the right steps at the right time is possible if you are aware of the options under the Total Loss Threshold South Carolina.
After calculating your vehicle’s ACV, the insurers will offer you a settlement amount, reducing the deductible. Then, you are obliged to transfer the vehicle’s ownership to the insurance company by signing over the title.
If you want to retain your car, you need to be involved in some important paperwork, such as a salvage and rebuilt title application. Moreover, you need to apply for the inspection process.
When you are at fault for the collision, you will have to use your insurance policy that takes into account a totaled vehicle. And, if it is another driver’s fault, they have to use their insurance coverage to compensate for your loss due to severe car damage.
In such a case, if the other driver does not have any policy coverage, you might have to use your car insurance to recover the loss.
Here are the things in your control when you believe your car is worth more:
It is very evident to have a stressful time after knowing that your car is declared a total loss. But you might have unexpected problems if you do not understand the Total Loss Threshold South Carolina.
It helps you know how insurers made this decision, what your car’s real worth and whether the settlement offer is fair or not. And, if not, you know what to do next. Furthermore, you can better prepare yourself by keeping all the records or receipts ready for further processing.
If you are thinking that you need to deal with the whole situation on your own, you shouldn’t. ADR Claims is here to help every step of the way. If you have just started the total loss claim process and things are not working as they should be, you can get in touch with us.
We can help you by offering reliable assistance in the claim process, guidance in the paperwork, and support in ensuring a fair settlement. Don’t let confusion or frustration hold you back. Contact the ADR-Claims team and ensure reliable support at every step of the process.
Our quick and simple appraisal process can help you recoup vehicle-related losses.
