1. What does total loss mean in Arizona auto insurance?

When the cost of repairs exceeds the car's actual cash value, the vehicle is deemed a total loss in Arizona. Simply put, the insurance company will declare the vehicle totaled if the cost of repairs exceeds its value. Your insurer will offer you a settlement based on the market value of your car before the accident, rather than covering the cost of repairs.

2. How do insurers determine a car’s value in a total loss appraisal in Arizona?

When a car is declared a total loss in Arizona, insurers calculate its actual cash value(ACV). Actual cash value is essentially what your car is worth prior to the accident, and to determine this, insurance companies look at certain factors, including the age of your vehicle. accident, repairs, and maintenance history, and the current market value of similar cars in your area. To determine the ACV, they can further consult databases, dealer lists, and recent sales information.

3. What is the total loss threshold in Arizona?

In Arizona, a car is deemed a total loss when the cost of repairs plus its salvage value is above the vehicle's actual cash value before the accident. This is because there is no one statutory "total loss threshold" in place. When replacing your car is more cost-effective than repairing it, the insurance company usually makes the decision and writes it off as a total loss.

4. What happens if you don’t agree with the insurance company’s valuation?

The first step in negotiating a better offer if you disagree with an insurance company's car valuation is to present proof of your car's fair market value, such as similar sales listings, proof of previous repairs, and records of maintenance. You are entitled to ask your insurer for a reevaluation after presenting your evidence. You can employ a third-party appraiser or mediator to figure out the fair value if the dispute doesn't go away. To guarantee just compensation, policyholders in Arizona have the right to negotiate and enforce the total loss appraisal clause. 

5. Do I need a lawyer for a total loss appraisal dispute in Arizona?

Although you probably don't require legal assistance right away, you should first collect supporting paperwork and evidence before speaking with your insurer and negotiating a higher settlement offer. But, if your insurance provider’s offer is extremely low and they refuse to explain why, or if the matter gets complicated, it's always better to contact an attorney or a claims expert to learn more about your rights and alternative options in Arizona. 

6. Can you keep your totaled vehicle in Arizona?

Yes, if you make an owner retention offer to your insurance provider, they will take the salvage value of your car out of your settlement, allowing you to keep your totaled car. You can choose this option if you believe your car is still salvageable. But there are also obligations associated with deciding to keep a totaled car; you need to comply with safety regulations, and must first file for a salvage title and then a rebuilt title.

If you’re navigating a total loss claim or an insurance dispute, ADR Claims can help ensure you get your fair compensation. Their expert team can advise and guide you to make your claims process smoother.