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How do you determine the insurance companies determine the pay out in the event of a total loss?
Wiki User
∙ 16y ago
The "total loss" threshold is determined by multiplying the credible retail value of the vehicle (usu. the "Blue Book" value) by some percentage, usually 80%. If the actual dollar cost to repair the vehicle would exceed this threshold figure, the vehicle is then declared a total loss.
I don't believe that sales tax or other "fees" are included in the initial determination. So, for example, if your vehicle has a "Blue Book" value of $10,000 and the cost to repair it is greater than $8,000, it will be "replaced" rather than repaired. You should receive a check for $10,000 minus any deductibles plus the sales tax in your state of residence .
Wiki User
∙ 16y ago
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Insurance companies will determine that your car is totaled if the cost of the damage approaches or exceeds the car
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Yes.
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In the event of a insured total loss, the insurance compnay, not you, has the rights to the parts. This is called salvage rights.
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