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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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โˆ™ 2006-08-02 10:02:39
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Q: What formula is used to determine if a vehicle is a total loss?
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What formula is used to determine if a vehicle is a total loss in Texas?

If the cost to repair is more than the vehicle is worth to replace then it is considered totaled.


How do you determine if a vehicle is totaled?

If the repairs of the vehicle exceed the value of the vehicle, then the vehicle is declared total loss.


How do they determine the amount to pay for a total loss vehicle with a prior salvage title?

Typically the value is 20% of the vehicle's value without salvage.


What is Borderline total loss?

A total loss is when the cost of repairing the vehicle exceeds a pre-determined percentage of the vehicle's value. For example, if your vehicle is worth $10,000 and the damage exceeds $7,000, your vehicle may be considered a total loss (depending on the state and your insurance company's policy). A borderline total loss would be (in the same example) if the damage to your vehicle is close to, but not quite $7,000.


Should I buy a vehicle that has been deemed a total loss in its vehicle history report?

No!


How do you determine that the department of motor vehicles has issued a salvage title for a vehicle?

As of 2013, the best way to determine if the department of motor vehicles has issued a salvage title for a vehicle is on the title it will state that it is a salvage title. A salvage title is a note that states that the vehicle has been damaged or deemed a total loss.


Which formula is used to determine the annualized loss expectancy?

Annualized Rate of Occurrence x Single Loss Expectancy. AROxSLE


Is there a formula the insurance companies use to determine salvage value of your car?

Different insurance companies use different figures to determine whether or not a vehicle is a total loss or not. Usually it is between 70 to 80 percent of the value of the vehicle. There is usually a special total loss adjuster who handles these cases once the normal property damage adjuster has determined it to be a total loss. Within all insurance policies it spells out that your insurance company has the option of paying to repair your vehicle, replace the vehicle, or pay you the actual cash value of the vehicle. All of these cases will be less your deductible of course. If they pay you the full actual cash value of the vehicle then of course the vehicle belongs to them. Sometimes you can buy it back from them if you like. I always recommend that people do not buy the car back because of the issues involved with this. In order to be able to get a tag for it again you will have to repair it completely and it will have to be inspected by the state. After this you will receive a salvage title that shows the new owner and all future owners that it was a total loss at one time. This makes it worth far less than any others if you want to sell it in the future.


Is there a specific NY Law concerning the compensation for a total loss auto insurance claim if the vehicle was purchased within the past 90 days?

If it is a total loss then the insurance needs to pay the value of the vehicle.


How do you determine the insurance companies determine the pay out in the event of a total loss?

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 .


Why do you have to sell your vehicle to the insurance company if it is declared a total loss in the state of Alabama?

no


What the formula of loss ratio?

claims paid divided by total premium - tax

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