When your car is totaled in an accident that wasn’t your fault in Mississippi, the at-fault driver’s insurance company must pay you the actual cash value of your vehicle plus taxes, fees, and other related costs.
Mississippi follows a fault-based insurance system, which means the person who caused the crash is legally responsible for replacing your totaled car. You have the right to full compensation without paying a deductible when filing through the other driver’s liability coverage.
You have two main options for getting your car replaced. You can file a claim directly with the at-fault driver’s insurance company, or you can use your own collision coverage if you have it. Each option has different advantages depending on your situation.
The total loss claims process involves several critical steps that protect your rights and ensure fair compensation. You’ll need to understand how insurance companies calculate your car’s value, what additional costs they must cover, and how to negotiate if their initial offer falls short.
What Is a Total Loss in Mississippi?
A total loss happens when your car’s repair costs equal or exceed its actual cash value. This describes how Mississippi defines a total loss. The actual cash value is what your car was worth right before the accident happened.
Insurance companies look at three key factors when deciding if your car is totaled:
- Repair costs: The total amount needed to fix all damage to your vehicle.
- Actual cash value: Your car’s market value immediately before the crash.
- Salvage value: What the damaged car could be sold for in its current condition.
Who Pays for a Totaled Car When I Am Not at Fault?
The at-fault driver’s insurance company must pay for your totaled vehicle through their property damage liability coverage. This is required by Mississippi law since the state follows a fault-based insurance system.
Problems can arise if the other driver has low coverage limits. Mississippi only requires drivers to carry $25,000 in property damage liability insurance. If your car is worth more than their policy limit, you might not get full compensation from their insurance alone.
How Do Insurance Companies Calculate Actual Cash Value in Mississippi?
Insurance companies determine your car’s actual cash value by finding its replacement cost and subtracting depreciation. This gives them the fair market value of your vehicle right before the accident occurred.
Adjusters examine several factors to calculate this value. They look at your car’s year, make, model, mileage, and overall condition. They also research recent sales of similar vehicles in your area using databases like CCC One or Mitchell.
The goal is to determine what you would have paid to buy the same car in the same condition just before your accident. This ensures you can purchase a comparable replacement vehicle.
Do Total Loss Settlements Include Sales Tax, Title and Fees?
Yes, Mississippi law requires insurance companies to pay the taxes and fees you’ll need to buy a replacement car. This is part of making you “whole” after the accident. The insurance company cannot leave you with out-of-pocket expenses for these necessary costs.
Your settlement should cover these additional expenses:
- Sales tax: The tax you’ll pay when purchasing your replacement vehicle.
- Title fees: Costs to transfer the new car’s title into your name.
- Registration costs: Fees to register your new vehicle with the state.
- License plate fees: Charges for new tags or transferring existing plates.
Can I Keep My Totaled Car in Mississippi?
You can choose to keep your totaled car through owner-retained salvage. The insurance company will pay you the car’s actual cash value minus what they could sell it for as salvage. This reduces your settlement but lets you keep the vehicle.
If you keep the car, you’ll receive a salvage title. To drive it legally again, you must repair it to meet safety standards and pass a state inspection. After passing inspection, you can get a rebuilt title, though insuring a rebuilt vehicle is often difficult and expensive.
What Are My Rental Car and Loss of Use Rights?
The at-fault driver’s insurance must provide you with rental car coverage while your claim is processed. If they don’t provide a rental car, they owe you daily “loss of use” payments to compensate for not having transportation.
This coverage typically lasts until you receive a settlement offer for your total loss. Many policies impose limits on daily rental reimbursement and may also cap the total number of days covered. Make sure to confirm these details with the adjuster early in the process.
Should I File with My Insurance or the at-Fault Driver’s?
You have two options for filing your total loss claim, each with distinct advantages and drawbacks. Consider your specific situation when choosing which route to take.
File With The At-Fault Driver’s Insurance – No deductible required; doesn’t affect your policy, but it may face delays or disputes; no contractual relationship
File With Your Own Insurance – Faster processing; your insurer advocates for you, but you must pay deductible upfront; may impact future rates
If you use your own collision coverage, your insurance company will seek reimbursement from the at-fault driver’s insurer through subrogation. This process recovers your deductible and protects your claims history.
What if the Other Driver Is Uninsured or It’s a Hit-and-Run?
Mississippi has nearly 30% of drivers uninsured, making navigating claims when the at-fault party lacks insurance a widespread problem. If the at-fault driver has no insurance or cannot be identified, you can still recover compensation through your own policy coverage.
Your uninsured motorist property damage coverage is designed for precisely this situation. This coverage pays to replace your totaled vehicle when the at-fault driver is uninsured or unknown. Without this coverage, you would need to use your collision coverage and pay your deductible.
How to Start a Mississippi Total Loss Claim
Taking the proper steps immediately after your accident protects your rights and ensures you receive fair compensation for your totaled vehicle.
Get Medical Care and Report the Crash
Your health comes first after any accident. Seek medical attention even if you feel fine, as some injuries don’t show symptoms immediately. Report the crash to the police promptly if your vehicle or other property was damaged.
The police report creates an official record of the accident and helps establish fault. This document becomes crucial evidence for your insurance claim.
Open the Property Damage Claim
Contact both insurance companies as soon as possible after the accident. Call your insurer first, then notify the at-fault driver’s insurer. Have key information ready, including policy numbers, the police report number, and details about the accident location and time.
Keep written records of all communications with insurance adjusters. This protects you if disputes arise later in the process.
Document Your Vehicle’s Value and Condition
Gather evidence that supports your car’s actual value before the accident. This documentation helps you negotiate a fair settlement if the insurance company’s initial offer is too low.
Essential documents include:
- Maintenance records: Oil change receipts, service records, and repair invoices.
- Upgrade receipts: Documentation of new tires, aftermarket parts, or improvements.
- Recent photos: Pictures showing your car’s excellent condition before the crash.
- Comparable vehicle listings: Online ads for similar cars in your area.
Protect Your Rental and Storage Rights
Your totaled car will likely be towed to a storage facility that charges daily fees. Authorize the insurance company to move your vehicle to a fee-free location immediately to avoid accumulating storage costs.
Confirm your rental car coverage with the adjuster and arrange for temporary transportation. Don’t delay this step, as some policies limit how long you can wait to start rental coverage.
Review the Insurance Valuation Report
The insurance company will provide a detailed report explaining its settlement offer. Scrutinize this document for errors or unfair comparisons. Check that the comparable vehicles match your car’s trim level, mileage, and condition.
If you disagree with their valuation, you have the right to dispute it. Prepare your own evidence showing why your car was worth more than their offer.
Handle Loan Payoff and Gap Insurance
If you owe money on your totaled car, the insurance check will be made out to both you and your lender. The loan must be paid off before you receive any remaining funds. This process can take several weeks to complete.
If you owe more than the car’s actual cash value, you’re responsible for the difference unless you have gap insurance. Gap coverage pays the difference between your loan balance and the insurance settlement.
How to Negotiate a Total Loss Settlement in Mississippi
Insurance companies rarely offer their best settlement on the first try. You have the right to negotiate for fair compensation that genuinely reflects your vehicle’s value.
Evidence to Increase Your Settlement
Present strong evidence to support a higher valuation if the initial offer seems too low. Provide maintenance records demonstrating excellent care and receipts for recent upgrades, such as new tires or batteries.
Research comparable vehicles for sale in your area and provide the adjuster with this information. Dealer quotes for comparable cars may also reflect the actual replacement cost in your local market.
Common Insurance Company Tactics
Insurance adjusters may use several strategies to minimize your settlement. Recognizing these tactics helps you respond effectively:
- Using poor comparable vehicles: They select cars with higher mileage or lower trim levels to justify a lower offer.
- Unfair condition ratings: Rating your well-maintained car as “average” instead of “good” or “excellent”.
- Ignoring recent improvements: Not crediting you for new tires, recent repairs, or maintenance.
- Pressure tactics: Making “final” offers or setting artificial deadlines to force quick acceptance.
Counter these tactics by providing your own research and maintaining professional communication throughout the negotiation process.
What Other Claims Can I Make Beyond the Car?
Your compensation extends beyond just your vehicle’s value. You can claim reimbursement for other property damaged in the accident and related expenses.
Personal Property Inside the Vehicle
The at-fault driver’s insurance should pay for personal belongings damaged in the crash. This includes electronics, tools, clothing, and other items that were in your vehicle at the time of the accident.
Create a detailed list of damaged items with estimated replacement costs. Provide receipts if available, or research current prices for comparable items online.
Child Car Seat Replacement
Car seats must be replaced after any accident, even if they show no visible damage. The forces involved in crashes can weaken the seat’s structure in ways that aren’t immediately apparent.
Insurance companies typically cover the full cost of replacing car seats with new, comparable models. Don’t accept a used replacement or a lower-quality seat than what you had before.
Towing and Storage Charges
The at-fault driver’s insurance must pay reasonable towing and storage fees related to your accident. This includes the initial tow from the scene and daily storage until the insurer inspects your vehicle.
Minimize these costs by allowing the insurance company to move your car to a fee-free location as soon as possible after the accident.
Will My Insurance Rates Increase if I Wasn’t at Fault?
Your insurance rates should not increase for an accident that wasn’t your fault. Mississippi law and most insurance policies prevent companies from penalizing you for someone else’s negligence.
However, some exceptions exist. Multiple claims on your record, even if not your fault, might affect your rates. Filing under your own collision coverage may affect your premium at renewal, depending on your specific policy terms.
What Deadlines Apply to Mississippi Car Accident Claims?
The Mississippi statute of limitations for car accidents gives you three years from the accident date to file a lawsuit for property damage or personal injury. While this may seem like ample time, acting promptly protects your interests.
Delaying your claim can result in lost evidence, witnesses with fading memories, and a weaker negotiating position with insurers. Contact our experienced Biloxi car accident lawyers to help you start your claim process immediately after the accident for the best results.
Experienced Auto Accident Law Firm in Biloxi, Mississippi
Some situations require professional legal assistance to ensure you receive fair compensation. A Biloxi car accident lawyer can help if you face disputed fault, lowball settlement offers, or if you suffered injuries along with your property damage.
At Maloney-Lyons Personal Injury & Car Accident Lawyers, we provide direct attorney attention throughout your case, not just staff or paralegals. Our experienced team serves Mississippi and the Gulf Coast from our offices in Biloxi and Mobile.
We understand insurance company tactics and fight to ensure our clients receive full and fair compensation for their losses.
Mississippi Total Loss and Insurance Claims FAQ
Do I Owe a Deductible if I Use the at-Fault Driver’s Insurance?
No, you don’t pay a deductible when filing with the at-fault driver’s liability insurance. Deductibles only apply when you use your own collision or comprehensive coverage.
Can I Claim Diminished Value if My Car Is Declared a Total Loss?
No, diminished value claims only apply to repaired vehicles. Since your totaled car is being replaced at its full pre-accident value, there’s no remaining diminished value to claim.
When Does Rental Car Coverage End After a Total Loss?
Rental coverage may terminate shortly after the insurer makes a reasonable settlement offer.
How Quickly Will I Receive My Settlement Check?
Insurers generally send payment after you sign the settlement release and provide the vehicle title, though the exact timing can vary.
Should I Give a Recorded Statement to the Other Driver’s Insurance?
You’re not required to provide a recorded statement to the other driver’s insurance company. It’s often better to decline until you’ve consulted with an attorney about your rights.
