Thread: Total loss
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Old 11-05-2012, 12:20 PM
Officially Welcomed to the 'Fest
Location: NJ
Join Date: Mar 2008
Posts: 329
Mein Auto: 08 M5 6sp
Originally Posted by x3brian View Post
Payout formula is as follows:

Car is deemed total loss if repairs exceed the following:

Fair Market Value + taxes/title of replacement vehicle + salvage * 70%

Once it exceeds that car is total loss. That formula is:

FMV + taxes/title + salvage value.


FMV = 32,000
Taxes/title = 5,000
Salvage = 5,000
Payout = 42,000

Total loss if repairs exceed $29,000

Nada is used to calculate FMV using VIN for options.

New car replacement is different but the formulas above are fairly consistent in the industry.
Why would the insurance pay the salvage value on top? Interested to know as I am waiting on my insurance co to declare a total loss. Since they are paying you the full market value already, why anything they recoup from salvage as well? or is the salvage value not included in payout, just this calculation. So it minimizes chance of total loss?
2008 M5 6sp - Space Gray/Black
2005 Toyota 4Runner 4WD Sport Edition, Silver

Gone but not forgotten
2004 545i steptronic - Titanium Gray - Sport Package
2003 Z4 2.5i manual - Sterling Gray - Sport Package, Premium Package
2004 Jeep Grand Cherokee Laredo 4WD
1996 Mercedes C220 Classic
1996 VW T3 Caravelle 2.6i
1995 VW Jetta III CLX
1989 VW Jetta II CLI exec
1961 Auto Union (DKW) 1000S (inherited from grandmother)
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