Legal Question in Traffic Law in Maryland

What is paid when a car is totaled?

I was involved in an accident on Sunday that was found by the police to be the fault of the other driver. My wife, who is five months pregnant, was driving when we were rear-ended, pushed down an embankment, and into a large group of trees. Luckily, although my wife has some noticeable discomfort, everything seems to be fine and there were no serious injuries. However, I do have a question that relates to the actual property value of our car and what happens from here if the car is totaled.

The insurance company will pay the damages but at what value if they determine the car is totaled? Is it the trade-in value, the fair market value, or the amount that we actually owe the finance company? What recourse do we have if the settlement amount is less than we owe on the car?

I appreciate any assistance and please feel free to contact me with any information pertaining to this question.


Asked on 8/27/02, 10:54 am

1 Answer from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: What is paid when a car is totaled?

You will receive an offer based on the type of policy coverage that was in effect at the time of the loss.

Some policies are for replacement value, others for fair market value, and others yet based on a value reported by an appraisal of the loss.

These three examples are not inclusive of the various permutations of coverage that is offerred on the market.

More importantly, is knowing what the type of coverage means and how to apply the specific type to increase your recovery.

Insurance companies are skilled with low balling the settlement of a claim, an attorney may be able to assist you with

acquiring coverage that you would not otherwise know how to acquire and thereby yeild a larger recovery that makes hiring an attorney a cost beneficial option. Any loss that you sustaing can be recovered in suit against the other driver.

However, in settling any insurance claim through the insurance of the other driver, you most probably will be asked to waive your rights to sue the at fault driver.

As to your expectant wife, I hope that you have taken her to the hospital and had her discomfort looked at. Often discomfort can be

a sign of a larger problem and this may not only affect her but also the health of the expected child. Other coverage, beyond property coverage, is/may be available through both

your policy as well as that of the other driver. You should consider hiring an attorney to assist you with these matters.

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Answered on 8/27/02, 2:06 pm


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