What is a total loss vehicle according to the law?
A total loss is a legal definition by insurance companies that means that the vehicle has been significantly damaged and the cost of repair may reach to 60% of its value. A vehicle that has suffered damage in the amount of 60% or more Its value is defined as a vehicle Total loss, and it is removed from the road, and it cannot be driven further (unlike a vehicle that is a total loss according to the law, which can continue to be used).
It is very important not to be confused with the definition of Regulation 266.Traffic regulations Which states as follows:
"רכב באבדן גמור" (Total Loss) – רכב ששמאי רכב קבע לגביו שהוא יצא מכלל שימוש או שהנזק הגולמי בו הוא 60 אחוזים ומעלה משווי הרכב;
The terms are very similar, but they refer to two different situations – one situation in which the vehicle can still be used (after repair), and the other, a situation in which the vehicle cannot be used.
It is important to know that insurance companies sometimes use the term Legal loss Instead of a complete loss according to the law. These terms refer to the same situation and the difference is only in terminology.
Who determines that a vehicle has reached a state of total loss according to the law?
The person authorized to determine that a vehicle is a total loss is, according to the law, an appraiser. This is usually an appraiser on behalf of the insurance company, because if the vehicle owner has comprehensive insurance, it is the insurance company that will actually have to pay for the vehicle's repairs.
This is what an appraiser's opinion regarding damage to a vehicle looks like and the conclusion that the vehicle is a total loss according to the law:
It is always important to check the appraiser's opinion (if there is one) before purchasing a vehicle that has been in a serious accident, to understand exactly what was damaged in the vehicle, and then it is important to check where and how the vehicle was repaired. It is possible that a vehicle that was damaged in a serious accident was repaired properly and can continue to be used.
On the other hand, from extensive experience of countless inquiries to our office, vehicles that have been defined as a total loss are generally repaired in garages that are not affiliated with the importer, and the main thing that guides them is to repair the vehicle at the cheapest possible cost. That is, you may receive a vehicle that looks completely new on the outside, but is damaged on the inside. After purchase, you may drive the vehicle normally, but the faults will be discovered a few days/weeks or months after purchasing the vehicle.
My personal recommendation is to avoid buying a vehicle that is a total loss as much as possible. Even if the vehicle has been repaired correctly and according to the manufacturer's instructions, it is highly doubtful that you will be able to sell it for a price close to the list price. There is a significant reluctance among buyers to purchase a vehicle that has been in a serious accident because people understand that serious accidents are an opening for repeated visits to the garage due to various and numerous malfunctions.
What can be done to avoid purchasing a vehicle that is a total loss?
Before purchasing any used vehicle, it is highly recommended to check its insurance claims history. This is a simple check that costs a total of 10 shekels. The check can be performed via the website Infocar.co.il.
The form you receive will look like this:
The top table lists all the dates and all the insurance companies that insured the vehicle. The bottom table is the interesting table because it shows whether the vehicle was involved in an accident. In the example shown above, the vehicle was in an accident in 2018. In this case, it was a relatively minor accident. If the vehicle were defined as a total loss in law, this would be displayed and written explicitly in the table below.
Please note – a vehicle inspection at a vehicle inspection center will not reveal whether the vehicle was classified as a total loss by the insurance company, and the inspection centers even emphasize this on the inspection form. The reason for this is that the inspection centers are not synchronized with the insurance company computers and do not know how the insurance company classified the vehicle after an accident.
However, I still recommend that you inspect the vehicle before purchasing it at a vehicle inspection center, because inspection centers will be able to detect many additional defects in the vehicle, and the more expensive the vehicle, the more it is worth making sure to perform the preliminary inspection.
Another option for checking the vehicle is through a Blacker report. This is a service provided by a private company that collects data from many databases and presents it in an easy and accessible way to the person requesting the report. The cost of the service is about 150 shekels. Although this is a more expensive service than the insurance claims history form, on the other hand you receive more information about the vehicle. In general, I recommend considering using this service as well, especially if you are considering filing a claim. Lawsuit against a car dealer who sold you An expensive and damaged car.
Is it possible to legally cancel a transaction to purchase a total loss vehicle?
It is very important to know that it is absolutely possible Cancel a used car purchase transaction Which is a complete loss according to the law, even if a very long time (even years) has passed after purchasing the vehicle.
The most common situation in which you discover that you have been sold a vehicle that is a total loss is when you want to sell the vehicle. Since people do not buy and immediately sell the vehicle, in practice the matter is discovered a long time after the purchase.
In these cases, it is very important to act quickly and not delay. You must notify the seller (it does not matter whether it is a private individual or a car dealer) that you have discovered that you were sold a vehicle that is a total loss, without the seller bothering to disclose this detail to you prior to the purchase, and in these circumstances you notify the cancellation of the transaction. The notice must be sent in writing (WhatsApp will also be accepted in court).
In the vast majority of cases, the seller will not agree to your demand to cancel the transaction and you will be forced to file a lawsuit in court. Lawsuits against car dealers for selling a legally lost vehicle These are very common claims, and attorney Eddie Blitstein has already handled countless such claims, and has had extraordinary success.
In these cases, it is important to do good preparatory work before filing the claim and collect all the documents you have that are relevant to the purchase of the vehicle. It is very important to check whether you have the contract agreement, the advertisement that the seller published online, Disclosure Form (if the transaction was made with a car dealer), correspondence and recorded conversations with the seller before and after the transaction.
All of this information may be very relevant to prove in court that the seller did not disclose to you before the transaction (or even afterwards) that he was selling you a vehicle that was legally a total loss. In addition, it is very useful to familiarize yourself with the provisions of the Used Car Sales LawThis is a very short law that will greatly assist you in dealing with car dealers, should you decide to file a small claim.
Complex claims regarding a vehicle that is a total loss in law
It is very important to understand that the more expensive the vehicle, the more likely it is that the defendant will do everything in his power to dismiss the lawsuit, to avoid paying you even a single shekel or to convince the court that there is no justification for ordering the cancellation of the transaction.
The more expensive the vehicle, the better it is to contact a lawyer who is knowledgeable in the field. Vehicle claimsThis is an area that requires in-depth familiarity with the relevant case law and legislation, and it is very possible that you are not at all aware of the legal issues that need to be addressed in your lawsuit in order to convince the court to accept your claims and order the cancellation of the transaction, and award you significant financial compensation.
Remember – it will generally always be cheaper to handle the claim correctly from the start than to file the claim alone or with an inexperienced lawyer and then want an experienced lawyer to correct any mistakes that were made. Correcting mistakes can be very expensive, time-consuming, and extend the time needed to resolve the claim, and sometimes correcting the mistakes simply won’t be possible, and for this reason you will lose the claim.
In conclusion
A total loss vehicle is, in principle, a vehicle that has been in a significant accident and the repair cost reaches almost 60% of the vehicle's value.
Purchasing such a vehicle is not recommended because even if it is repaired properly and in accordance with the manufacturer's instructions, the buyer will have great difficulty selling it in the future, as people are very reluctant to purchase such vehicles.
In cases where a vehicle is sold to you as a total loss, without this being explained to you prior to the transaction, you are entitled to demand cancellation of the transaction, even if a very long time (even years) has passed after the transaction.
In situations where you are considering filing a claim, it is highly recommended to contact an experienced auto lawyer. It is better for you to handle the case correctly from the start, than to end up in a situation where you choose to contact a lawyer after the fact to correct mistakes made in the management of the claim. It is not always possible to correct the mistakes, and this may significantly affect the chances of success of your claim.
