12-02-2012, 08:32 AM
Officially Welcomed to the 'Fest
Location: Sacramento CA
Join Date: Jan 2011
Mein Auto: X3
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.
Originally Posted by UncleJ
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!
Determination of value of vehicle at loss:
Nada guide value
Replacement car taxes and registration
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.