If your insurance company decides to not repair the damage that happened to your vehicle after a car accident, your car may be written off. Unfortunately, your preference is not a factor here, and how you feel about your vehicle will not matter. Even if you owe money on the vehicle still, your insurance company can decide to write off the car. Under Section 6.6 of Ontario’s standard automobile policy, it is stated that an insurance company holds the “right to repair, replace or rebuild the automobile rather than pay for the damage.”
After an accident, if your car meets any of the criteria below, it may be declared a total write-off.
- If the necessary repairs to the car will exceed the total value of the vehicle
- If the structural damage to the vehicle is too severe to be fixed
- If the airbags were deployed, several thousand dollars will be required to repair the car. When the airbags are deployed, this is typically a sign of significant structural or physical damage to the vehicle.
How Is Vehicle Write-Off Value Calculated?
There is currently no industry standard that determines whether or not a vehicle should be written off. However, most insurance companies will calculate vehicles’ write-off value using an actual cash value versus repair costs and salvage value equation.
In these situations, your insurance company will consider your vehicle type. The make, model, and year of the vehicle, will all impact what the car‘s actual cash value may be. You should not expect your car to be worth the same amount as it was when you purchased it.
If your car has been customized at all this can impact your actual cash value of your car either positively or negatively. If you have extras, custom equipment, moderations, or alterations that were done to your vehicle, this will change how much the car is worth.
The kilometer mileage on your vehicle will significantly impact its value. If your mileage is unusually low, or unusually high, it will change how much your car is worth.
Lastly, the sale price will factor into the actual cash value of your vehicle. The insurer will review the present price range for vehicles similar to yours, sold in your local market.
If the repair cost of the vehicle, plus the salvage value, is greater than the actual cash value, the vehicle is considered a write-off.
How Is The Cost Of Labor Calculated?
Vehicle repairs, including the cost of labor, can only be estimated by a mechanic who is trained to work on cars. Typically, your insurance company will handle the interaction between the insurer and the mechanic on their own. Sometimes, an insurance company will have a preferred shop in which they prefer all of their repairs to be facilitated in.
However, it’s important to remember that you have the right to choose your own mechanic after a car accident. However, if you do choose to select your mechanic, you are then responsible for managing the interaction between the repair shop and the insurance company.
If the repair cost of the vehicle, plus the salvage value, is greater than the actual cash value, the vehicle is considered a write-off. If the vehicle does not meet the criteria, the vehicle will then be repaired.
How Can I Afford To Pay For Expenses After A Car Accident?
As a car accident victim, you could be entitled to compensation for your medical expenses lawsuit just pain and suffering, and more. Being in a car accident is an overwhelming, stressful experience. The injuries you sustain in an accident could affect you physically, emotionally, and financially. There’s a lot on your plate in the days, weeks, and months following a car accident. The last thing you should have to deal with is the added stress of having to file a personal injury claim to protect your right to compensation. That’s why it’s so important to contact our professional lawyer for auto accident compensation as soon as possible after a crash.
Schedule A Free Consultation With A Halifax Car Accident Lawyer Today
If your car has been badly damaged in an accident, you need the help of an attorney. An attorney can help you recover faster by filing a personal injury claim that seeks to award you with the compensation you need to move forward.
At McKiggan Hebert Lawyers, we offer a free, no-obligation consultation to any Nova Scotia accident victim who needs help getting their life back on track after an accident.