What Makes a Car Totaled

when is a car a total lossThe most common response I see quoted online for the question, "what makes a car totaled", is when the cost to repair the damage equals 75% or more of the actual cash value of the car.

This is very misleading because this percentage is different in some states. While some insurance companies do use the 75% rule not all of them do. Some will use a higher percentage and others a lower percentage. In addition, in some states the percentage used to determine if a car is totaled is controlled by state regulation.

To further complicate the question, some auto insurance companies rely on the Total Loss Formula which is an Actual Cash Value appraisal completed by an auto appraiser.

Here is a list of the states and their corresponding Total Loss Threshold

 

car-insurance-claims-making-a-car-total-loss

 

How to get the highest car claim payout Learn more here.

Rules can change, so do not rely on the above information and call your insurance provider to confirm what they consider a total loss and how it is calculated.

The more you know about what makes a car totaled the better prepared you will be to handle and negotiate your auto insurance claim.
This video gives a couple good tips with the exception of KBB which is great for finding out the general vehicle value. However in my opinion, it is not the best source to determine the actual cash value for total loss vehicles. I find it typically reports vehicle values below retail or the replacement value of most vehicles.

Want to know more about how to get the highest claim payout? Click here.

 

Related Posts

  • 64
    One question many car owners have when in a collision is what makes a car totaled, or what is commonly known as a "total loss" or "write-off". This question can confuse many people especially if they have been in a car accident and their vehicle appears to have sustained minimal…
    Tags: vehicle, car, loss, total, insurance, damage, totaled, farm, state, calculated
  • 57
    Whether you are dealing with USAA, Farmers, State Farm, Nation Wide, GEICO, Progressive or one of the many other auto insurance companies for your totaled car, they all have the same objective... to reduce auto claim costs as much as possible. Auto insurance adjusters that work for these companies are…
    Tags: insurance, claim, car, farm, totaled, state, geico, cash, appraisal, actual
  • 57
    How to Get the Most Cash For Your Totaled Car PART 1 of 3 If this is your first (or not) total loss vehicle claim, this article is for you. Here's the thing... The auto insurance companies don't want to pay your claim! There,I said it. That is why they…
    Tags: insurance, car, cash, total, loss, claim, will, vehicle, appraisal, auto

Tags: , , , , , ,

Facebook Comments:

Leave A Reply (2 comments so far)


Cash Loans

Low Interest Car Loans

Uncover Any Vehicle’s Accident History

Disclaimer: "All brand names and product names used on this website are trade names, service marks, trademarks, or registered trademarks of their respective owners."

Affiliate Disclosure: I am grateful to be able to provide great content free of charge. As part of my content, I do make recommendations to products and services. If you click on one of those links and purchase, I may earn a referral commission in most cases. Your support in purchasing through these links enables me to keep my website operating costs to a minimum . Thank you, in advance for your support!

s2Member®
%d bloggers like this: