Parked Car Hit - Who Is Responsible?

My parked car was hit outside of my New Jersey home. The car was severely damaged, and the repair costs may be too much. If my insurance company declares the car a total loss, what should I do?

Answer

The person who hit your car is clearly at fault, as long as you weren’t in violation of any parking laws. A car is declared a total loss when the cost of repairs would exceed the actual cash value of the vehicle. In the event that the car is totaled, the insurance company would give you a check for the actual cash value of the vehicle and have you sign over the title of the car to them. Usually, they then sell the vehicle to a salvage yard to recoup some of the losses. More than likely, the actual cash value you receive for your car will be substantially less than what you paid for it because the figure takes depreciation into account. You can dispute your insurance company’s valuation of the totaled vehicle by paying for an independent appraisal.