If you’ve been involved in a serious car accident in South Carolina and your vehicle has been declared a total loss, one of the biggest concerns you might have is how long it takes for the insurance company to pay out. The answer can vary depending on several factors, but understanding the typical process, legal obligations, and how to handle delays can help you prepare and protect your rights.
In this guide, we’ll walk through:
- What counts as a total loss
- The steps in the total loss claim process
- Average timelines for payout
- Common reasons for delays
- What to do if the insurance payout is delayed or denied
- How Ted Law Firm can support your claim
What is Considered a Total Loss?
A total loss occurs when the cost to repair a damaged vehicle exceeds a certain percentage of its actual cash value (ACV). In South Carolina, that threshold is typically 75% or more of the car’s ACV.
For example, if your car is worth $10,000 but the estimated repair cost is $7,500 or more, the insurance company may declare it a total loss and pay out the ACV instead of paying for repairs.
Key elements that define a total loss include:
- Extent of physical damage
- Vehicle’s market value at the time of the accident
- Cost of necessary repairs
- State regulations (South Carolina uses a total loss threshold)
How Does the Total Loss Process Work?
The insurance payout for a total loss doesn’t happen overnight. Several steps must take place before the insurer cuts a check or deposits funds.
1. Filing the Claim
You’ll first need to report the accident to your insurer or the at-fault driver’s insurer (if it’s a third-party claim). This should be done as soon as possible after the accident.
2. Vehicle Inspection and Damage Assessment
The insurer sends an adjuster to inspect the damage or arranges for the car to be towed to an approved location. A repair estimate is then compared with the ACV to determine if it’s a total loss.
3. Determining Actual Cash Value
The ACV is calculated using various data points:
- Vehicle make, model, year
- Mileage
- Pre-accident condition
- Market values of comparable vehicles
This figure becomes the basis for the payout, minus any deductible or lien balance (if you financed the car).
4. Title Transfer and Paperwork
You’ll be required to sign over the title to the insurer. If there’s a loan on the car, the insurer will typically send payment directly to the lienholder first and any balance left over to you.
5. Payment Disbursement
Once all documents are complete and accepted, the insurance company issues the final payout.
Average Timeline: How Long Does It Really Take?
While insurance companies strive to process claims promptly, the total loss claim process can take anywhere from 7 to 30 days, depending on the situation.
Factors That Can Delay the Insurance Payout
It’s not uncommon for policyholders to experience delays, especially with more complex cases. Here are several reasons why your total loss claim might take longer:
1. Title or Loan Complications
If the vehicle is financed, the lienholder must be involved in the title release process. Missing or incorrect paperwork can slow things down significantly.
2. Disputes Over Value
If you disagree with the insurer’s ACV, you may need to provide documentation (maintenance records, recent upgrades, vehicle listings) to support a higher value.
3. Insufficient Documentation
Incomplete or delayed submission of documents,like your ID, title, claim forms, or power of attorney, can add days or even weeks.
4. Third-Party Claims
If the accident was someone else’s fault, and you’re going through their insurance company, you may experience longer processing times due to investigations or liability disputes.
5. Insurance Company Backlog
Sometimes, there’s just a high volume of claims. Catastrophic events like hurricanes or multi-car pile ups often cause insurer delays due to sheer volume.
What Can You Do to Speed Up the Process?
If your car has been totaled, and you’re waiting on the payout to buy another vehicle, it’s understandable that time is critical. Here are some tips to accelerate the process:
Stay Proactive
- Call your adjuster regularly
- Ask for clear timelines
- Respond to requests quickly
Prepare All Documents Early
- Title or loan information
- Vehicle maintenance records
- Copy of the police report
- Photos of the vehicle pre-accident (if available)
Challenge Lowball Offers Promptly
If the ACV seems too low, submit a written appeal with evidence (Kelley Blue Book valuations, repair receipts, comparable vehicle listings).
Consider Gap Insurance
If your vehicle is financed, and the payout won’t cover the loan balance, gap insurance can cover the difference.
When Should You Consider Legal Help?
While most total loss claims resolve without legal conflict, some situations may require legal representation, especially if:
- The insurer is unreasonably delaying the process
- The payout offer is well below the fair market value
- You believe there’s bad faith handling of your claim
- The insurance company is denying the total loss designation unfairly
Legal support may also be helpful if you’re dealing with a third-party claim and liability is being disputed, which can delay your compensation.
South Carolina-Specific Considerations
Important SC Notes:
- Insurers must issue payments within a “reasonable period”, but the law does not set a fixed deadline.
- South Carolina’s Department of Insurance allows you to file a complaint if you’re facing unjust delays.
- You have the right to negotiate the ACV before accepting the payout.
Navigating a total loss claim can be stressful,especially when you’re relying on that payout to replace your vehicle and get back on the road. Understanding the process, average timelines, and potential pitfalls is essential. Most claims wrap up within a few weeks, but delays can and do happen.
Staying organized, responding promptly, and knowing your rights will give you the best chance at a smooth and timely resolution. If you’re struggling to get fair treatment from an insurance provider, legal assistance can help level the playing field.
Need Help with a Total Loss Claim in South Carolina?
If your car has been totaled and you’re not getting timely or fair compensation, don’t try to handle it alone. Our team at Ted Law Firm is here to guide you through your claim and make sure your rights are protected. We proudly serve injury victims in Aiken, Anderson, Columbia, Greenville, Myrtle Beach, North Augusta, Orangeburg, and Summerville. If you’ve been injured due to someone else’s reckless or criminal behavior, our experienced attorneys are here to help you seek justice and recover the compensation you deserve. Contact us today for a free consultation.
Attorney Ted Sink, founder of The Ted Law Firm, is a Yale, Stanford Business School, and Charleston School of Law graduate and former marketing executive who built a 7-figure law practice, earning millions for his clients. With experience in both law and advertising, Ted has been recognized in Forbes, Entrepreneur, and the ABA Journal. He speaks at industry conferences on marketing and law firm management, sharing insights from his unique background to help other firms grow. When not working, Ted enjoys traveling, diving, and dog-sitting golden retrievers.
