While a repair shop may perform an evaluation of the damage to a vehicle after an accident, it typically is the insurance company that determines if your truck is repaired or replaced after an accident in Indianapolis, IN.
How an Insurance Company Makes the Decision to Repair or Replace a Vehicle
Insurance companies are always regulated at the state level. This means the insurance company must follow the state-mandated guidelines when it determines if your truck is repaired or replaced after an accident in Indianapolis, IN.
In the state of Indiana, whether the vehicle is repaired or replaced is determined by the total loss formula (TLF). Each state sets its own specific thresholds. For the state of Indiana, that threshold is 70%. That means for a vehicle to be considered a total loss, the cost of repairs must meet or exceed 70% of the actual cash value of the truck at the time of the accident.
For example, if a truck is worth $10,000, and the repair shop estimates that it will cost $6,000 to do the repairs, the truck is considered repairable. However, if the shop estimates that the repairs will cost $7,000 or more, that 70% threshold has been met and the truck will be considered a total loss.
So even if the cost of the vehicle exceeds the cost of performing repairs, if repairs would cost over 70% of the cost of the vehicle before the accident took place, insurance companies consider it a total loss.
How Insurance Companies Establish Actual Cash Value for Your Vehicle
Insurance companies find the actual cash value (ACV) of a truck by looking at specific variables, including:
- The general condition of the car before the accident
- The make and model
It is a very similar process that is used in the Kelley Blue Book system. You can even use Kelley Blue Book if you would like a second opinion about the estimate for ACV.
Indiana Is Not a No-Fault State
If you have been in a car accident in the state of Indiana, it is important to know that Indiana follows a fault system of law. In Indiana, if you are injured or have property damage as a result of a truck accident, you pursue damages with the at-fault driver’s insurance company, rather than your own insurance company.
If you or a family member has been injured in a truck accident in the state of Indiana, you may be entitled to compensation for your damages. Call Sevenish Law Firm, P.C., right away at (317) 636-7777 for a free, no-obligation review of your case. Our firm has handled many cases like yours, and we are proud of the results we have achieved for our clients.
A member of our team is available and ready to get started on your case today. Having legal help can help you face an insurance company that determines if your truck is repaired or replaced after an accident in Indianapolis, IN. Remember that you have a limited amount of time to pursue legal action after an accident due to Indiana’s statute of limitations.