What Does “Total Loss” Mean Following an Accident

total loss car accident

After a serious auto accident, figuring out how to deal with a heavily damaged vehicle is not always a simple matter. In some cases, a car may be so damaged that it is not possible or feasible to have it repaired. When a vehicle is considered a “total loss,” an insurance company will not typically pay to repair it. Instead, the insurance company will pay the owner for the value of the vehicle, or in some cases, replace the vehicle with a comparable one. 

Dealing with insurance companies can be frustrating and stressful, especially if you do not understand the law. The experienced personal injury attorneys at Williams Elleby Howard & Easter, help accident victims who have suffered a personal injury with all aspects of their auto accident claims. If you would like to discuss your case, contact Williams Elleby Howard & Easter, today by calling 833-LEGALGA. 

Total Loss Insurance Claims in Georgia 

A vehicle is considered “totaled” if the cost of repairs is greater than the value that the vehicle would have after repairs. However, many insurance companies consider not only whether a vehicle is totaled, but also whether it is a “total loss.” Generally, a vehicle is considered a total loss if the cost of repairs plus the salvage value of the vehicle is greater than the value the vehicle would have after repairs. This is commonly referred to as the total loss formula. 

Cost of Repairs > Value of Repaired Vehicle = Totaled 

Cost of Repairs + Salvage Value > Value of Repaired Vehicle = Total Loss 

Some states also have laws that create a total loss threshold, which dictate when an insurance company may consider a vehicle a total loss. Most states that have laws like these hold that an insurance company may only consider a vehicle a total loss if the cost of repairs is 75-80% of the value of the repaired vehicle. However, Georgia does not have statutory or regulatory total loss threshold. Insurance companies are free to make this determination on their own based their own total loss thresholds or the total loss formula. Therefore, whether a vehicle is considered a total loss following an accident depends not just on the extent of the damage, but also on the insurance company. 

Total loss vehicle claims are governed by the Title 120 Chapter 2 Section 52.06 of the Official Code of Georgia. Under this law, “if the insurer determines the insured vehicle to be a total loss, and the insurance policy provides for the adjustment and settlement of first party vehicle claims on the basis of actual cash value or replacement, the insurer may elect to pay a cash equivalent settlement or replace the insured vehicle.” 

What Do I Do if the Insurance Company Says My Vehicle is a Total Loss 

If you have been in an accident and your insurance company has declared that your vehicle is a total loss, you should be prepared for the fact that you will only receive the fair market value of the vehicle. Georgia states that the fair market value is whatever it would cost “to purchase a comparable automobile by the same manufacturer, same model year, with similar body style, similar options and mileage, including all applicable taxes, license fees and other fees incident to the transfer of ownership of a comparable automobile.” By law, insurance companies are able to come up with this cost by simply finding comparable vehicles in the area that are for sale, or by consulting with the Kelley Blue Book (or a similar accepted source) valuation for a vehicle. 

Insurance companies also have the option of providing an insured with a comparable replacement vehicle. The law states that “the insurer may elect to replace the insured vehicle, including all applicable taxes, license fees, and other fees necessary to transfer ownership.” However, an insured is under no obligation to accept an offered replacement vehicle. If a replacement vehicle is rejected, the insured gets the cash value. 

For More Information, Contact Williams Elleby Howard & Easter, Today 

Williams Elleby Howard & Easter, is dedicated to helping accident victims get the compensation they deserve. The personal injury attorneys at Williams Elleby Howard & Easter, understand how stressful motor vehicle accidents can be for victims and their families. That is why they work hard to provide thorough, compassionate, and effective service to each of their clients. If you have been in an accident and would like to discuss your case, contact Williams Elleby Howard & Easter, today by calling 833-LEGALGA.

Georgia Court of Appeals Recently Discusses the “Family Purpose Doctrine” in Car Accident Case

family purpose doctrine accident

A recent case decided by the Georgia Court of Appeals, Anderson v. Lewis, has helped to further define the application of Georgia’s family purpose doctrine. This case involved a Georgia auto accident. The driver that caused the accident was driving his grandfather’s vehicle at the time. The plaintiff, Teena Anderson, named both the grandson and the vehicle owner, the grandfather, as defendants. Anderson claimed that the latter should be liable according to the family purpose doctrine. 

The Family Purpose Doctrine 

Typically, a person is not liable for the negligence of someone else. But sometimes, as a matter of fairness, it is necessary to look beyond the person directly responsible to see if other parties should be obligated to compensate the victim. This is called vicarious liability. The most common application of vicarious liability occurs when employers are sued for the negligence of their employees. However, vicarious liability can also apply to family members. 

Under Georgia’s family purpose doctrine, “when an owner of a vehicle maintains the vehicle for the use and convenience of his family, that owner may be held liable for the negligence of a family member who was using the vehicle for a family purpose.”  Therefore, when a family member causes an auto accident while driving the family car in service of the family, for instance by getting groceries or giving a family member a ride, the car owner may be liable. The legal basis for the family purpose doctrine comes from Georgia case law, as well as from Georgia’s vicarious liability statute, which states that “every person shall be liable for torts committed by his wife, his child, or his servant by his command or in the prosecution and within the scope of his business, whether the same are committed by negligence or voluntarily.” 

Application of the Doctrine in Anderson 

It was clear that the family purpose doctrine applied in Anderson. The grandson was found to be using the vehicle for a family purpose when the accident occurred. However, the plaintiff was unable to serve the grandson with notice of the lawsuit, and without service of process a party cannot be sued. The claim against the grandson was therefore dismissed. 

After that, the grandfather argued that since the driver was no longer a defendant, the claim against him should also be dismissed. He argued that vicarious liability can only apply when the party that directly caused the accident is found to have been negligent. If the party accused of causing the accident is found not to have been negligent, then there can be no vicarious liability. Georgia law is clear that if there is “a judgment on the merits in favor of the servant” then there cannot be vicarious liability against the master. The trial court agreed with the grandfather’s argument and dismissed Anderson’s claim. Anderson appealed. 

The Appeal Court’s Opinion 

The Court of Appeals of Georgia overturned the trial court decision. Although the claim against the grandson was dismissed, it did not constitute a “judgment on the merits.” There was never any judicial determination that the grandson wasn’t negligent. Therefore, even though the grandson was no longer a party to the lawsuit, the Court of Appeals held that Anderson could still continue on with her lawsuit against the grandfather. This case shows that the family purpose doctrine can apply against a defendant even if the family member directly responsible is not a defendant in the lawsuit. 

Find the Best Georgia Car Accident Attorney for Your Case 

The State of Georgia has many attorneys that handle car accident claims.  Some are very good and others are not.  If you are considering hiring an attorney for your case, you should consider interviewing more than one firm before making your decision. 

If you schedule a free consultation with one of our experienced Georgia personal injury attorneys at Williams Elleby Howard & Easter, we can help you understand whether the family purpose doctrine may apply in your case. Victims of accidents caused by the negligence of someone else deserve to be compensated for their harm. 

Williams Elleby Howard & Easter, is a law firm dedicated to providing knowledgeable, accessible, and effective service to each of its personal injury clients. Our attorneys handle all types of personal injury claims throughout the State of Georgia, including auto accidents, workplace injuries, defective products, premises liability, and malpractice cases. We offer free consultations and accept cases on a contingency fee basis, meaning our clients don’t pay a dime in attorney fees unless and until we win their case. To schedule a case evaluation, call Williams Elleby Howard & Easter, today at 833-LEGALGA.