Total Loss Claim in Florida

Interpreting Total Loss

The Total Loss

When your car meets with a devastating accident on the road and repair costs equal to or exceed a certain point, the vehicle is considered a total loss. This means your car is no longer worth repairing, and you can buy a new vehicle.

The Threshold

The point that determines whether a car is a total loss or not after an accident is called the 'total loss threshold'. Simply put, the total loss threshold is the percentage of the car's ACV (actual cash value) before the accident used to total a vehicle. The total loss threshold can range from 50% to 100% depending on local laws and the insurance policy.

The Claim

A total loss claims in Florida allows you to seek compensation after your vehicle is totaled. Other than your car being damaged in an accident, you can also file the claim if it's stolen and not recoverable. Remember that when you file a total loss claim, the insurance company doesn’t pay for its repair. They pay you for the vehicle’s ACV (Actual Cash Value) or IDV (Insured Declared Value) minus deductibles.

Important Laws Regarding Total Loss Claims in Florida

Before you file a total loss claim after your car is totaled, you must know the specific rules related to it. The important laws regarding a total loss claim in Florida are as follows:

The 80% Rule

Under the Florida Statute, your car is officially totaled if the estimated repair cost equals or exceeds 80% of the car’s ACV prior to the accident. Insurers also consider salvage value in addition to the threshold. If the sum of the repair costs and the damaged car’s estimated sold price exceeds ACV, they total the vehicle.

ACV & Valuation Rights

In Florida, insurers must value your car based on local, comparable vehicles. They need to use valuation manuals, like NADA, Kelley Blue Book, etc. If you agree on a third valuation method, insurers must use it to determine whether your car is a total loss.

Payout Requirements

Once you are awarded a total loss settlement, the insurer is obligated to pay for the ACV plus sales tax, title transfer, and licence transfer fees.

Third-Party Comparable Restrictions

They are not allowed to claim junk or heavily damaged cars as comparables, as this reduces your payout. The cars used as comparables must be of the same manufacturer and have similar body type, options, and mileage. These cars should be in better condition than yours and available for inspection near your residence.

Lienholder Payoffs

In case you have a car loan, insurers must provide a check jointly payable to you and the lienholder to clear the debt.

Calculating Total Loss Value in Florida?

Insurers use a specific formula to determine both the total loss designation and your settlement amount.

Determine ACV

It is the value your car had before the accident, taking into consideration depreciation, the market, the car’s condition, and mileage.

Calculate the 80% Threshold

If the repair costs ≥ 0.80 x ACV, the car is a total loss.

Determine the Payout

Your final settlement amount is calculated as:

Payout = ACV - Deductible

Filing a Total Loss Claim

Filing a total loss claim in Florida is a process with many steps. Here is a rundown of the entire procedure.

• First of all, call the insurance company and let them know about the accident and you filing a total loss claim in Florida.
• Call the police and inform them about the collision, so they file a case.
• Take videos and photos of the damage and other papers like insurance, the FIR, and the RC copy.
• When the insurer visits the spot, assist them in assessing your car and submit all the required documents.
• The insurer will assign a surveyor to evaluate your car’s lost value and repair costs.
• If the repair cost is equal to or more than the ACV, prior to the car’s accident, it’s declared a total loss.
• Next, the insurer will estimate the total loss claim settlement amount and tell you.
• Then you will surrender your car’s registration certificate to the RTO for deregistration.
• In Florida, insurers approve or deny a claim within 90 days and disburse the amount within 20 days of finalizing the settlement.

Steps to Maximize Your Claim Settlement Amount

If you have filed a total loss claim in Florida and feel like the insurer is offering a low payout, then take the following steps for a fair settlement.

• Let the insurance company make their first offer to learn the baseline, but remember not to accept it immediately.
• Use reputable platforms to find cars with the same manufacturing year, make, model, and similar mileage in your locality.
• Submit the recent maintenance receipts to the insurance adjuster, as they increase your payout.
• Review the insurance company’s valuation report and challenge their flawed comparables.
• Don’t agree to a final amount or sign the claim without checking all the documents or having pending medical injury claims.
• If you and the insurer can’t agree on a settlement amount, invoke the appraisal clause. This allows both of you to hire an appraiser and determine an agreeable amount.

Expert Total Loss Claim Assistance

When your car meets with an accident and is damaged extensively, only filing a total loss claim in Florida is the solution. We are ADR Claims, a team of skilled and experienced auto appraisers. We will help you navigate the entire process. We also offer other services, like fleet and commercial appraisals, lease return inspection, heavy equipment appraisal, etc. Contact us to book your appraisal service.