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Basically when repairing it is more than the cost of the current value of the car.

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โˆ™ 2006-03-23 22:39:18
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Q: When is a vehicle a total loss?
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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.

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.

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


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.

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


What is the criteria to declare a damaged car a total loss?

544. "Total loss salvage vehicle" means either of the following: (a) A vehicle, other than a nonrepairable vehicle, of a type subject to registration that has been wrecked, destroyed, or damaged, to the extent that the owner, leasing company, financial institution, or the insurance company that insured or is responsible for repair of the vehicle, considers it uneconomical to repair the vehicle and because of this, the vehicle is not repaired by or for the person who owned the vehicle at the time of the event resulting in damage. (b) A vehicle that was determined to be uneconomical to repair, for which a total loss payment has been made by an insurer, whether or not the vehicle is subsequently repaired, if prior to or upon making the payment to the claimant, the insurer obtains the agreement of the claimant to the amount of the total loss settlement, and informs the client that, pursuant to subdivision (a) or (b) of Section 11515, the total loss settlement must be reported to the Department of Motor Vehicles, which will issue a salvage certificate for the vehicle.

If your car is declared a total loss how much will the insurance company pay back to you if the car was purchased below book value?

Regardless of what you paid for the vehicle, in most cases,if your vehicle is deemed a total loss, you will be paid the local market value of your vehicle. If you happened to purchase your vehicle for less than that, you lucked out:)

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.

In Texas do insurance companies owe third parties for rental reimbursement if the parties vehicle is a total loss?

Case Law Hanna vs. Lott states that when the car is totally destroyed, the measure of damage is the difference in the market value immediately before and immediately after the loss, and no additional recovery can be had for the loss of use of the chattel while it is being replaced. No loss of use is owed on a total loss vehicle.

What is it called when a salvaged vehicle was repaired?

AnswerAfter it's Repaired, it's called a " Salvaged Rebuilt Vehicle". before it's repaired it's called a total wrecked vehicle. Most insurers will not provide insurance for a total wrecked vehicle unless proven that the vehicle was prematurely declared a total loss.This would not apply to cars being rebuilt from the ground up, such as classics

If insurance company reports car total loss what title do they receive?

If the insurance writes off the vehicle - they get YOUR title document - and THEY then forward it to the DMV informing them that the vehicle is scrapped.

If your insurance company says your car is a total loss but you want to have it fixed can they charge you a salvage fee to keep your own car?

Any vehicle, whether a total loss or not, has a value. A totaled vehicle, of course, has a significantly lesser value (assuming the actual total loss has already been settled with the vehicle owner). This value can be anywhere from 5 - 25% of the pre-loss value of the vehicle. If you decide to keep a totaled vehicle after settling with an insurance carrier, they can legally remove the salvage value from your settlement. It shouldn't be much, and you can request that they actually get a salvage quote from a salvage yard. The idea behind this is that you can't legally profit from a loss. In your case, if your totaled vehicle has a salvage value, and you're keeping the vehicle, the insurance carrier must deduct that salvage value. Otherwise, you will get a full settlement, and still retain a vehicle with some value. But...try working with the carrier on what that salvage amount is going to be. Sometimes they'll adjust it to get the loss settled, since you never "really" know what the salvage value is going to be until the vehicle is sold at a salvage yard auction.

How does the auto insurance claim process work when dealing with a vehicle involved in a flood and the vehicle has a current auto loan?

The same as any other loss. Damages and repair costs are assessed and if determined a total loss the vehicle value is paid out. Lien-holders take first place on the payout.

How can you get your car replaced rather than just repaired?

Replacing a vehicle vs repairing it is strictly the choice of the vehicle owner. If your vehicle is repairable by insurance company standards, you will be paid for the repair, not replacement/total loss.

When your auto is declared a total loss do you get the tax and license you paid back as well as the actual cash value of the vehicle?

Not likely, no

How old of a car will full coverage cover?

You can technically get full coverage (comp and collision) coverage on any age vehicle, but it is usually not practical to get it on a really old vehicle since if the vehicle is in an accident and is deemed a total loss you will not get very much for the vehicle.

What is a salvage ticket?

its when 70% of a vehicle has either been damaged or wrecked, and insurance has classified it as a total loss. in some rare cases the salvage title could be issued to a stolen vehicle

Does the insurance company have the right to total your car even if their insured was at fault for the accident?

Your car being deemed a total loss does not have anything to do with the liability of the accident. Your vehicle becomes totalled when the repair cost exceeds the local market value of your vehicle.

What Happens When My Vehicle is a "Total Loss" ?

The term "total loss" is used in the auto insurance industry to describe a car that would cost more to repair than the value of the car itself. When an insurance company that your car, truck, SUV, van or other vehicle is a total loss, you have the choice to accept the insurance company's check to you for the value of your car or to dispute the valuation of the car and have the total loss determined by an arbitrator.How Insurance Companies Determine Total LossFollowing an accident, your insurance company will initially assign an insurance adjuster to your claim. The adjuster will inspect your wrecked auto and determine the extent of the damage. The adjuster will also use a formula that is established by each insurance company to determine whether the insurer should pay to repair the vehicle of if the cost of repairs would exceed the threshold that the company has set. Many insurers will consider the vehicle to be a total loss if the cost of repairing the vehicle and providing you with a rental car for the time period that the vehicle is being repaired exceeds fifty-one percent of the actual cash value of the vehicle. Other companies will call the vehicle a total loss if this percentage is eighty percent or greater.Even though a car may still be drivable, if the actual cash value of the vehicle is already low due to vehicle age or condition, the insurance company may prefer to total the car out and pay you the cash value of the car in lieu of paying for repairs. Typically, insurance companies use the so-called "blue book" value of the vehicle in determining cash value.Arbitration to Dispute Total LossIf you do not agree with the declaration of your vehicle being a total loss, you may have the right to arbitration. Check with your policy to determine if you have that right, or ask your agent. Not all policies provide a provision for arbitration. If it does, you can hire an independent arbitrator to examine your vehicle and make an estimate as to the cost of repairing the vehicle. If the insurance adjuster's valuation of the vehicle (and thus the payment you will receive) is less than you think it should be, or if your vehicle has sentimental value, then arbitration may be your best option.A good way to know if you are getting a fair shake from the insurance company is to look up the value of your vehicle online. There are several online authorities on the matter of blue book value, and it does not cost to look up the information.Settling UpOnce your vehicle has been declared a total loss, most people just accept the settlement check for the value of their vehicles. The settlement check typically includes the cost of registering and titling a vehicle that values at the same costs as your wrecked auto. The insurance company will keep your wrecked auto and sell it off to recoup some of the money that they paid out to you. Most "totaled" vehicles end up being sold to salvage or junkyards as scrap.

What are your options when a car is totaled?

When a vehicle is considered a "Total Loss' there are a few things you can do. If you have full coverage on the vehicle or if a third-party was the cause of the total loss then the insurance company will pay you the fair market value or retail value of your vehicle less any prior damage or other factors that may reduce the value of your vehicle. If they offer you a settlement then they will issue a check. You might have the option to retain the vehicle for salvage but they will reduce your claim by that value amount. If the car is totalled, it's totalled. You cannot title or register the vehicle normally after that point.

What does loss payee mean on a auto insurance policy?

The loss payee is any entity that has financial interest in the vehicle (usually a financial institution) that notifies the insurance company and the policy holder of that interest in writing. Any entity can be a loss payee, including your father, if he can show financial interest. The loss payee is usually the finance company that holds title to your vehicle. In the event of significant damage to the vehicle the loss payee needs to sign off on the check from the insurance company for the damage. This usually happens after the damage has been repaired. In the event of a total loss the loss payee will be sent a check for the amount of the loan and anything left over will you to the insured. Hopefully you won't owe more than the car is worth in the event of a total loss.

Can a request be made to an accident repair shop to declare a car totaled?

Ultimately, the decision to declare a vehicle a total loss belongs to the insurance company. If the insurance company is unable to have one of their own adjusters look at the vehicle, they will usually hire an independent. The repair shop can write an estimate and take pictures, but the insurance company will decide (based on state law and their own policies) whether or not the vehicle is a total loss.

What is salvag title?

When a vehicle is cassified as a total loss. The insurance company will sell it at auction to recoupe some of its money.Whoever buys it can rebuild it and have it inspected to get a new title.Now it is considered a rebuilt or "salvaged"vehicle.

What is the duration of Total Loss?

The duration of Total Loss is 1.58 hours.

What formula is used to determine if a vehicle is a total loss?

Insurance companies will determine that your car is totaled if the cost of the damage approaches or exceeds the car