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Old 12-02-2012, 08:32 AM
x3brian x3brian is offline
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Location: Sacramento CA
Join Date: Jan 2011
Posts: 1,279
Mein Auto: X3
Originally Posted by UncleJ View Post
I was thinking the same thing. I would certainly not want to get this one back -- in spite of the excellent repair that I am sure it would get -- it just has too much damage for me. It may have something with avoiding a "salvage title" but that's just a guess. In any case the diminished value would be serious indeed!
It has more to do with the math equation the insurance companies use to calculate total loss than whether or not a car SHOULD be totaled. When I explain it you will see it is less likely a new car will be totaled and more likely an older car will be.

Determination of value of vehicle at loss:

Nada guide value
Replacement car taxes and registration
Salvage value
Value of loss

Calculation of total loss

Formula above * 70% (range as low as 50% and as high as 80% depends on insurance company)


Nada value = $38,000
Registration/taxes = $5,500
Salvage value = $4,000

Loss value = $47,500

To total repairs have to exceed $33,250 for car to be declared a total loss. Very high hurdle rate. This of course is not the case if you have a replace new vehicle with new vehicle rider on your insurance policy...frankly quite rare.

If they exceed $33,250 you will be issued a check for $47,500 to proceed to your nearest dealer for a new car.

Last edited by x3brian; 12-02-2012 at 08:36 AM.
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