Total loss of a vehicle – what does it mean and how is the value of the vehicle affected by it?

The used car market generates huge sums of money every year. For this reason, it is possible to find cases in which vehicles are currently sold in Israel in a total loss or near total loss condition, all with the aim of maximizing the seller's profits.

If you are sold a vehicle After an accident And the seller did not inform you of this, contact our office. Our office has represented and represents for over a decade many clients who purchased vehicles that were later found to have been in serious accidents. In these cases, we have been able to help our clients cancel transactions and receive financial compensation.

Usually, the person who sells a vehicle in a Total Loss or Legal Loss status is a car dealer. These are people who specialize in selling/buying used vehicles and their entire goal is to purchase the vehicle cheaply and sell it for as high a price as possible. Over the years, our office has received countless inquiries from unsuspecting buyers who bought a vehicle from a car dealer (sometimes without even having the vehicle inspected at a vehicle inspection center before actually purchasing the vehicle) and discovered at a later stage that they had purchased a vehicle with faults or a vehicle that was in a Total Loss or Legal Loss status.

Attorney Eddie Blitstein has been representing plaintiffs in total loss vehicle lawsuits for over a decade. In most cases, if a vehicle is sold to you in a total loss or loss situation, you are legally entitled to file a claim. Civil lawsuit and demand Canceling a transaction to purchase a used car, and in addition, financial compensation for the damages caused to you, and, Compensation for mental anguish.

What is the difference between a total loss and a legally lost vehicle?

The amount of damage during a total loss and the amount of damage to the vehicle that was legally defined as a loss vehicle

The difference between a vehicle in Total loss status and Legally lost vehicle He is tall. The damage caused to the vehicle after an accident.

Total loss is defined in Regulation 266 of the Traffic Regulations 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;

That is, a vehicle in this status is necessarily a vehicle that has lost at least 60% of its value.

There is no definition of a legally lost vehicle in the traffic regulations. This concept is defined in the insurance policies of the insurance companies themselves. A look at the websites of the various insurance companies will reveal that each of them defines a legally lost vehicle slightly differently.

Insurance 9 (from IDA) defines the differences as follows:

The term total loss generally refers to the percentage of the vehicle's damage value after the accident. While in the case of a total loss the percentage of damage must be 60 percent or more, in the case of a A complete loss according to the law.The percentage of damage value is defined as between 45% and 59% of the vehicle's value.

Direct insurance Defines the differences as follows:

A total loss is a situation of near-total loss, and is given based on the recommendation of a licensed appraiser. This is an intermediate situation that refers to a case in which the damage to the vehicle is estimated at over 50% of its value and certainly under 60%. In such a case, the insurance company can pay the insured the full compensation (as if the vehicle had been defined as a total loss), but it is not obligated to do so. If the percentage of damage is within the range of a true total loss, the appraiser will recommend whether to repair the vehicle or treat it as a total loss, and the insured must approve the decision.

The insurance company WOBI defines the differences as follows:

כאן נכנס לתמונה המושג של אובדן להלכה. זהו נזק גבוה מאד הנגרם לרכב, אך בשיעור נמוך מעט יותר מאשר זה שמגדיר אותו כ"טוטאל לוס": לרוב, ינוע הוא בין 40% ל-50%. עדיין לא יהיה אפשר לנהוג עליו, אבל התמונה שונה לגבי חלפיו.

In such a situation, then, the insurance company will usually offer the driver to sell the remains of the vehicle to a dealer, and the price for them will be slightly higher. The driver himself will receive compensation exactly the same as the total loss, sometimes even the value of the vehicle.

Please note that insurance company advertisements do not always match the definition of total loss in traffic regulations, so it is important to consult with your insurance company. Automotive Lawyer Before submitting Financial claimAnd not just about various publications online, even if they are about insurance companies.

שימו לב – על פי פסיקת בית המשפט העליון ספק אם יש מקום לבצע הבחנה בין רכב בסטטוס טוטאל לוס לבין רכב אובדן להלכה. בעניין זה בית המשפט העליון קבע כך (רע"א 7839/14 רבקה אהרון נ' שירביט – חברה לביטוח בע"מ, פסק דין מיום 26.2.2015):

אציין כאן במאמר מוסגר, כי איני רואה הבדל מהותי לענייננו בין אבדן גמור ל"אבדן להלכה", שהוא התיחסות אופרטיבית לאבדן כאילו היה "גמור" (total loss) גם אם לא היה כזה, אלא פגיעה מסיבית שחברת הביטוח אינה רואה את תיקונה ככדאי כלכלית; יוזכר "רכב באבדן גמור" מוגדר בחוק הגבלת השימוש ככזה שניזוק ב-60% משוויו (סעיף 1).

The reason why there is no need to make a distinction between a vehicle that has been declared a total loss and a vehicle that has been declared a near total loss is that in any case these are vehicles that have been in very serious accidents. It is very possible that a vehicle in loss status is also not a safe vehicle to drive.

Continued use of a total loss vehicle versus a legal loss vehicle

A vehicle in total loss status must be taken off the road and may not be used any further. If you are sold a vehicle in this status, it is especially serious, and it is recommended that you stop using the vehicle immediately.

On the other hand, a vehicle that has suffered less than 60% of its value can be used and sold in the future. In these cases, insurance companies generally allow the vehicle owner to choose whether to repair the vehicle or accept the value of the vehicle in cash, and in return transfer the vehicle to the insurance company (in these cases, the insurance company sells the vehicle to a third party, who repairs the vehicle and returns it to use).

Regulation 308(b) of the Traffic Regulations states as follows:

(b) If a vehicle appraiser believes that a damaged vehicle has gross damage exceeding 60 percent, he shall give the driver or owner a notice of total loss and notify the licensing authority thereof in the prescribed form, and shall also transfer the vehicle license to the licensing authority.

In other words, another difference is that when an appraiser determines that the damage is over 60 percent (total loss), the appraiser is obligated to transfer the vehicle's license to the licensing authority. This emphasizes the seriousness and concern about continued use of such a vehicle.

In conclusion

Can be submitted Lawsuit against a car dealer Or against a private individual who sold you a vehicle in total loss status (damage over 60% of the vehicle's value) or even Vehicle malfunction For another reason, especially if it's a car dealer who didn't bother to sign you up for Disclosure Form.

A vehicle in total loss status is a vehicle that must not be used, must be taken off the road, and certainly must not be sold to anyone. If the sale was made without disclosing to the buyer that the vehicle had been in a serious accident, this only increases and increases the chances of success in a lawsuit against the seller of such a vehicle.

In these cases, you can demand, as part of a lawsuit, the cancellation of the transaction and the return of your money, in addition to financial compensation for the damages you suffered, including emotional distress.

Frequently Asked Questions Regarding Total Loss Vehicles