I have a brand new car worth Out of door price 17758$. I rear ended someone on the highway, how much money will I get if totalled?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Mar 21, 2016

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Insurance Question from Fremont, CA

Asked on 03/21/2016

I have a brand new car worth Out of door price 17758$. I rear ended someone on the highway, how much money will I get if totalled? I had a brand new 2016 corolla for 17758 out of door price. on the highway, traffic congestion caused a 60-0 mph in 2 seconds and I hit a car in front of me. Is there no way to split the fault in any case? If my car gets totaled , how much money can I expect from Allstate insurance. How much will my premium increase in that case? Will I also have to pay for the damages to the other car if it counts entirely as my fault? Will that also increase my premium?

Answer given on March 28, 2016

Auto insurance covers the actual cash value of a car. If you have an accident and the car is totaled, you will not receive the amount that you paid for the car even if it brand new. Cars depreciate the minute they are driven off the lot. The insurance company will base the settlement offer on the current value of your car. This is determined by local costs for a similar car and/or reviewing the Kelly Blue book or a similar publication.If you rear ended another car, even though the speeds changed drastically, it is still your fault. You should have been maintaining a safe distance from the car in front of you, so that you could stop in time if they suddenly stopped.The cost of any increase in your premium is based on several factors. There is a dollar limit before your rates increase, but if your car is totaled, or severely damaged, you have exceeded that threshold. If there were injuries due to the accident then your rates will go up quite a bit more, since you would not only be charged with the accident, but you would lose your good driver discount.

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