car accident lawyer Baltimore county

What if the Insurance Company Won’t Pay a Total Loss Claim in Maryland?

A total loss claim refers to a car insurance claim where the vehicle is considered a total loss, meaning the cost to repair it exceeds its actual cash value. In these cases, the insurance company will declare the car a total loss and pay for the actual cash value of the vehicle at issue rather than repairing it.

Fortunately, you can contact our legal team for help if an insurance company will not pay your total loss claim in Maryland. We will review the specifics of your case and fight for the full extent of compensation you deserve.

In the aftermath of your collision, seek help from our experienced Maryland car accident lawyers at Rice, Murtha & Psoras by dialing (410) 694-7291 for a free case assessment.

What to Do if an Insurance Company Will Not Pay Your Total Loss Claim in Maryland

If an insurance company refuses to pay your total loss claim after your Maryland car accident, this can leave you in a very difficult situation. You may be unable to replace your vehicle and get your life back on track. Thankfully, there are certain actions you can take that may help you obtain the payment you are owed.

Obtain Legal Representation

The most important step is to obtain experienced legal representation. Our car accident attorneys have in-depth knowledge of Maryland insurance regulations and laws related to total loss claims. We can advise you on your options and rights. Further, we can also handle communications and negotiations with the insurance company on your behalf. This takes the burden off of you during what is likely a very stressful time.

Submit a Demand Letter

Our team can also send a demand letter to the insurance company formally contesting their denial of your claim. This letter provides evidence to back up your position and demands that your claim is paid immediately. The letter may spark the insurance company to reconsider your case. If not, this latter lays the groundwork for additional legal action.

Pursue Legal Action

If necessary, our team will file a lawsuit against the insurance company to recover your total loss claim settlement. A lawsuit should typically be your last resort, but it may be essential if the insurer refuses to provide fair compensation after good faith efforts to reach a resolution. Support and guidance from our legal professionals can improve your chances of getting a favorable outcome in your case.

What is a Total Loss Claim in Maryland?

When you are in a serious car accident, one of the first things your insurance company will do is assess the damage to determine if your vehicle is repairable or if it is considered a total loss. If the cost to repair your vehicle exceeds its actual cash value, your insurance company will deem it a total loss.

This means the damage is so extensive that the insurance company has decided it does not make financial sense to repair the vehicle. Instead, they will pay you the actual cash value of the car, which is determined based on its market value prior to the accident. This payment from the insurance company is considered a total loss settlement.

For many accident victims, getting this total loss settlement can be extremely frustrating. You may have been emotionally attached to your vehicle or feel the settlement does not adequately compensate you for the dramatic impact the accident has had on your life.

This is why it is critical to have our legal team by your side when reviewing your total loss claim. The lawyers at our firm understand the complex formulas insurance companies use to calculate actual cash value and can determine if a settlement offer is fair.

Common Reasons that Total Loss Claims are Denied in Maryland

There are many reasons why an insurance company may deny a total loss claim in Maryland. For example, any of the following may be used to justify your claim’s denial:

Dispute Over Vehicle Value

One of the most common reasons an insurer may deny a total loss claim is if there is a dispute over the actual cash value of the vehicle. The insurance company may argue that the car was worth less than what you claim prior to the accident. They may say repairs would be less than the vehicle’s value, so it does not meet the threshold for a total loss. Our legal team can contest the insurer’s vehicle valuation with supporting evidence such as comparable sales and expert assessments.

Lack of Maintenance Records

Insurers may deny a claim if you lack documentation showing routine maintenance and repairs made to the vehicle. Records prove the condition of the car before the accident and support its value. Our team can gather these records from repair shops you used over the years.

Aftermarket Parts

Aftermarket parts are another factor that should be considered when valuing your claim. Modifications like non-factory wheels, an upgraded sound system, or custom paint job can lead to a lower valuation. Insurance companies depreciate aftermarket parts faster. Your attorney can negotiate a fairer value and settlement based on the parts. They may need to involve auto experts to appraise the upgrades.

Dispute Over Accident Details

If there are liability disputes over who caused the accident, an insurer may argue total loss should be covered under the at-fault driver’s policy. Police reports, witness statements, and accident reconstruction can help prove you were not at fault.

Previous Damage

Prior damage not caused by the accident in question may lead the insurer to lower the vehicle’s pre-loss value. You must prove any past damage was repaired and did not impact the car’s value before this incident.

Call Our Car Accident Lawyers for Help with Your Total Loss Claim in Maryland

If you need help with a total loss claim in Maryland, get help from our experienced Woodlawn car accident lawyers at Rice, Murtha & Psoras by dialing (410) 694-7291 for a free evaluation of your case.