Total Car Loss Claims in New Jersey
Since 2001, the state of New Jersey has experienced over 250,000 car crashes per year, according to the Department of Transportation of New Jersey.
If you find yourself among these statistics, rather than wait to receive money from the person who may be liable, you may make a claim for a total vehicle loss with your insurance company.
New Jersey 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.
The total vehicle loss formula used by insurance companies in New Jersey 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 New Jersey
If you file an insurance claim after a car accident with your insurer so you can get money to purchase a replacement vehicle, 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 loss, you are entitled to a pay out covering the cost of the vehicle which should include sales tax plus mandatory motor vehicle fees.
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 fees and taxes.
What Does Insurance Owe You After a Total Car Loss in New Jersey
Insurance companies in New Jersey must consider factors such as the make, model, and year of the totaled vehicle.
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 New Jersey have been met with settlements that fail to include important fees involving:
- Sales tax
- Vehicle registration
- Title transfer
- License plate transfer
- Any other motor vehicle fees made mandatory in New Jersey
If your insurance settlement involving a total car loss is 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 New Jersey, 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.
Anderson + Wanca works with attorneys licensed throughout the United States and have filed a number of cases in state and federal court in New Jersey.