What if Insurance Isn’t Enough to Pay for a Totaled Car?

In North Carolina, you may incur significant out-of-pocket costs if your car is totaled in an accident and the insurance payout isn’t enough to cover the full value or remaining loan balance. Understanding all your rights and options,  including pursuing a personal injury claim, , is essential to protecting your financial interests after a serious collision.

You need to protect yourself if you’ve been injured in a crash and your car has been totaled. The Rhine Law Firm, P.C., like most firms, does not directly handle property claims.  We focus our work and attention on obtaining the compensation you deserve for injuries and related losses when your car has been totaled and you’re left to deal with recovery and lost wages.   Call today for a free case evaluation.

Negotiating a Higher Payout for a Property Damage Claim

If you file a property damage claim after your car is totaled and believe the insurance payout is too low, you have the right to negotiate.

Here are the key steps to help you pursue a higher settlement from your insurer:

• Review the Insurance Offer Carefully. Start by examining how your insurance company calculated your car’s actual cash value (ACV). Make sure they’ve considered your vehicle’s make, model, year, mileage, condition, and any upgrades.
• Gather Evidence of Your Car’s Value. Collect recent sales listings for similar vehicles in your area, as well as documentation of your car’s condition, maintenance history, and any recent repairs. Kelley Blue Book, Edmunds, and NADA Guides are useful tools for estimating fair market value.
• Get an Independent Appraisal. If the insurer’s valuation seems low, consider hiring an independent appraiser to provide a professional opinion on your vehicle’s worth, which can carry weight in your negotiations.
• Submit a Counteroffer in Writing. Prepare a written response outlining why you believe the settlement is too low, and attach your supporting evidence. Be specific, and include a dollar amount that reflects your research.
• Remain Professional and Persistent. Keep communication polite but firm. Adjusters may push back initially, but thorough documentation and persistence can lead to a better outcome.
• Appeal the Decision if Necessary. Ask your insurer about their formal appeals process or dispute resolution options if negotiations stall. In North Carolina, you can also file a complaint with the North Carolina Department of Insurance (NCDOI) if you believe your insurer is acting in bad faith.

If the claim involves injuries, disputed liability, or significant financial loss, a personal injury attorney may be able to assist you with both your injury and property damage claims, including negotiations with the insurer.

GAP Insurance

GAP insurance, or Guaranteed Asset Protection insurance, is optional coverage that protects car owners from financial loss when a vehicle is totaled or stolen, and the insurance payout does not cover the remaining balance on the auto loan or lease.

Standard auto insurance typically pays only the vehicle’s actual cash value (ACV) at the time of the accident—which can be significantly less than what you still owe, especially in the early years of financing or leasing a new car. GAP insurance bridges this “gap” by covering the difference between the ACV and the outstanding loan or lease amount, preventing you from paying out of pocket for a car you no longer have.

GAP insurance is particularly beneficial for buyers who made a small down payment, have longer-term loans, or are financing vehicles that depreciate rapidly. It is commonly offered by dealerships, lenders, or insurance providers at the time of purchase, and it can also be added to many auto insurance policies.

In the event of a total loss, GAP insurance ensures that you are not burdened with debt after your primary insurance has paid out its portion, providing financial peace of mind when your car’s value drops faster than your loan balance.

File a Personal Injury Claim

If you’ve been injured and your vehicle is totaled in an accident and insurance doesn’t fully cover the loss, a personal injury claim may help you recover additional compensation–when another party is at fault. As noted, while auto insurance typically pays for the fair market value of the vehicle, this may fall short of covering your full financial burden, particularly if you still owe more on your car loan or face related expenses.

Filing a personal injury claim is a separate legal action. It can help recover compensation for medical bills, lost wages, and other damages, which could indirectly help you manage the overall financial impact of the accident—even though it may not increase the property damage payout.

A personal injury claim allows you to pursue damages beyond just property loss, including medical bills, lost wages, pain and suffering, and other accident-related costs. If successful, your claim could help bridge the financial gap left by insufficient insurance coverage, offering a more complete recovery for your losses.

Schedule a Free Consultation with Rhine Law Firm, P.C.

When it comes to motor vehicle accidents, North Carolina is an “at-fault” state. As noted above, you can seek monetary damages from the at-fault or negligent party. A personal injury lawyer is best equipped to determine who may be liable and the best strategy moving forward. Schedule a free, no-obligation consultation today. Since we work on a contingency fee basis, you will not pay attorney’s fees unless we win compensation for your injuries.

About Us

Rhine Law Firm, P.C. serves clients throughout North Carolina and nationwide, specializing in complex civil litigation led by Joel Rhine. With expertise in personal injury, car accidents, property damage, sex abuse, and more, the firm is passionate about taking on challenging cases. They emphasize providing personalized legal representation, prioritizing their clients’ best interests while offering state-of-the-art legal strategies. Rhine Law Firm’s dedicated attorneys enjoy the fight for justice and are committed to guiding clients through complicated legal processes. The firm offers free consultations, flexible appointment scheduling, and Spanish language services.