If Your Airbags Deploy, Is Your Car Totaled?

If My Airbags Deploy, Is My Car Automatically Totaled?

No. Just because your airbags deploy after a car accident does not mean your vehicle is automatically considered a loss. A total loss is usually declared when the threshold of the cost of repairing your vehicle exceeds the actual cash value (ACV) of your vehicle.

Every state has its own threshold to determine total loss, and it doesn’t necessarily boil down to whether airbags are deployed or not.

How Does Airbag Deployment Affect the Value of a Vehicle?

There are two main ways in which a vehicle airbag deployment affects its value: the repair costs and its market value.

After an airbag is deployed, the entire airbag module must be replaced or reset. Repair also extends to other parts of the vehicle, like the seatbelt pretensioner (the mechanisms that lock up a seatbelt during the crash), the dashboard, steering column, interior panels, and other components in the front and sides of your vehicle. The cost for all these repairs can run anywhere from $2,000 to upward of $10,000.

Additionally, even if your vehicle is fully repaired after an airbag deployment, the vehicle’s Carfax or AutoCheck report will show that your vehicle has been in a collision where the airbags were deployed, and this can reduce the overall resale value of your vehicle.

Why Can Airbags Be Expensive To Replace?

A single airbag replacement runs anywhere from $1,000 to $3,000, and it’s not uncommon for multiple airbags to be deployed in an accident.

If your car crash deployed side airbags, then those systems can be more complex to repair, costing anywhere from $2,000 to $5,000.

What Other Damage May Cause a Car To Be Declared a Total Loss?

Airbags are not the only factor that can cause your vehicle to be declared a total loss after a car accident. There are other issues that an insurance company may consider factors for a vehicle to be totaled.

• Structural damage is the most serious type of damage and occurs when your vehicle’s crumple zones are crushed because of the impact of the collision.
• If your vehicle was submerged in water or otherwise sustained flood damage, this can be equally devastating. Electrical wiring, engine parts, and other components can all be damaged to a point of excessive cost that is not worth the vehicle’s actual cash value.
• Fire and severe weather damage can also fall under the territory of total loss.

How Is the Value of a Totaled Car Determined?

There are standard total loss thresholds formulas that determine whether your vehicle is a total loss or not. Most states will use one of two methods. The fixed percentage method and the total loss formula.

• The fixed percentage method is when the repair cost exceeds a set percentage of a vehicle crash value. Colorado uses a 100% fixed percentage threshold as outlined by C.R.S. § 42-6-102, meaning that a vehicle is considered a total loss when the repair costs reach or go over 100% of the car’s ACV.
• Under the total loss formula, all repair costs are added to the total cost of your vehicle’s salvage value (your vehicle’s worth if it’s sold for parts or scrap). If this sum is equal or exceeds the actual cost value, then your vehicle is considered totaled.

How Do Insurance Companies Decide if a Car Is Totaled?

Insurance companies follow the same methodology when determining whether your vehicle is totaled after your car accident. Insurance companies inspect the vehicle, review photos, and take estimates from repair shops to determine what the repair cost is. From there, they will compare it to your vehicle’s actual cash value.

There are also other factors that insurance adjusters will take into consideration, as well as to determine whether your vehicle is a loss or not. These factors include the age of your vehicle, how many miles are on your vehicle, the trim level, and what the sale price of comparable vehicles are in your local market.

If you think your vehicle’s assessed value, according to the insurance adjusters, is much lower than it should be, having documentation, like maintenance records, upgrades, and data related to comparable listings, support your claim that your vehicle should be worth more.

What Happens After an Insurance Company Declares Your Car a Total Loss?

Once your vehicle is determined to be a total loss, your insurance company will pay you out the actual cash value, minus your deductible. If your vehicle has a lease or a loan, this payment will typically go to your lending or leasing company first. Any remaining balance will then go to you.

You’ll also need to remove any of your personal belongings from the vehicle, return the license plates, and your vehicle will either be towed away to a junk yard or to an auction company.

Can You Keep or Repair a Car That Has Been Declared Totaled?

In many states, you are allowed to keep your vehicle; however, the insurance company will only pay you out your vehicle’s actual cash value minus the salvage value (the cost that it’s worth if sold for parts or scraps).

If you keep the vehicle, it will now have a salvaged title. Salvage titles indicate that the vehicle was previously declared a total loss. In order to legally drive the vehicle again, you must repair it, have it pass a state inspection, and you must apply for a rebuilt title.

This can be a good avenue to explore if you have the time, money, and energy to rebuild a vehicle. However, salvaged vehicles that now have rebuilt titles are often harder to sell and insure. Plus, many lenders won’t provide finance support for a vehicle that has a rebuilt title.

How Can Bachus & Schanker Help After a Car Accident?

If your insurance company has determined that your vehicle is a total loss, you may have grounds to push back with the right legal support. The attorneys at Bachus & Schanker understand how insurance companies evaluate total loss claims, how they calculate ACV, and the tactics they use to minimize claims.

Our attorneys can review whether your valuation is fair, whether the repair estimate is complete, and, most importantly, whether you’re being offered the compensation you deserve.

If you’ve also suffered a personal injury in the collision as well, our attorneys can help you navigate the nuances of your case, so you get the full compensation you might be entitled to.

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