In Florida, a car is considered a total loss when the cost to repair it exceeds 80% of its ACV-actual cash value. See 319.30(3). This could be paid by the at fault drivers insurance company or your own insurance company although your recovery will be reduced by the amount of your deductible if you file the claim through your own insurance company.

Insurance companies decide on ACV by using various methods. These include:

• Comparable listings in the local market
• Industry databases and guidebooks
• Quotes from local dealerships
• Adding other factors such as age, mileage, modifications, etc.

If you owe any outstanding financing on your luxury car, then you are legally obligated to advise the insurance company of this and to give them the lender’s details. The insurance company will pay the lender first with any balance going to you. If you owe more than the vehicle is worth, all insurance money will go to the lender, and you are responsible for any outstanding amount.

In most cases, you will transfer the title to the insurance company, who will then apply for a salvage title. They will then issue payment to you and any lender. They may, upon request, allow you to keep the vehicle and will deduct any salvage value from your final settlement.

The only factors the insurance company looks at to make a decision are monetary ones. Most areas of a high-end vehicle can be repaired, so they will only declare a total loss when the cost of all repairs is more than the value, or, in the case of Florida, when total repair costs are more than 80% of the value.

If new damage is found once repairs have commenced, the insurance company will most likely continue to pay for the repairs, even if the total repair cost now exceeds the value of your sports or luxury car. If they refuse, contact The Collision Lawyer.