Total Car Loss Claims in Illinois
Since 2015, the state of Illinois has experienced over 300,000 car crashes per year, according to the Illinois Department of Transportation.
If you find yourself among these statistics, rather than wait to receive money from the person who may have caused the accident, you may make a claim for a total vehicle loss with your insurance company.
Illinois is one of a number of states in the U.S. that requires your insurer to pay certain fees and taxes in computing what you are entitled to recover as a total vehicle loss if you purchase a replacement vehicle within 30 days.
The total vehicle loss formula used by insurance companies in Illinois might take the following factors into account:
- Actual cash value: What the car was worth before the accident
- Cost of repairs: The amount of money required to return the vehicle to its condition prior to the accident
- Salvage value: What money can be made by scrapping the vehicle or parting out
If the cost of repair and the value of salvaging are greater than the pre-crash value of the car, the result is a total loss.
Insurance Settlements for Total Loss Vehicles in Illinois
If you file an insurance claim in Illinois with your insurer so you can get money to purchase a replacement vehicle, your insurer must reimburse you actual cash value which Illinois courts have held includes sales tax plus mandatory vehicle fees. If you purchase a replacement vehicle within 30 days of you insurance settlement, you are entitled to recover sales tax, title and transfer fees.
Your insurance company will inspect the damages and decide whether the vehicle is worth repairing, or if it will be totaled.
If your insurance company decides the car is a total loss, you are entitled to a payout covering the value of the vehicle.
This amount is what the insurance company determines to be the fair market value of your car before it sustained the damages which also includes mandatory motor vehicle and taxes.
What Does Insurance Owe You After a Total Loss in Illinois
Insurance companies must consider factors such as the make, model, and year of the totaled vehicle for total loss claims in Illinois.
They will also make calculations based on mileage, value comparisons, and the car’s condition before the accident.
However, in some cases, total loss claims in Illinois have been met with settlements that fail to include required fees involving:
- Sales tax
- Title Fees
- Title transfer
- License plate transfer
If your insurance settlement involving a total car loss does not including these items, you may be owed additional money.
Contact Us About Your Total Loss Vehicle Settlement
If you have sustained a total vehicle loss in the state of Illinois, we would be happy to review your settlement documents, your insurance policy, and the invoice for your replacement vehicle to determine if you are owed additional money.