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Total loss threshold- salvage title (archive)

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Posted by Mark Williams on August 28, 2001 at 20:16:34:

In Reply to: Which of course makes no real sense... posted by ptdaniel on August 28, 2001 at 15:59:59:

Looks like you guys need a little help here.

An insurance compaby will total a car when the cost to repair the vehicle exceeds 70-80% of the value of the vehicle... The %
varies depending on the age and condition of
the car.. Most really old vehicles are going
to be a total at 70% and brand new vehicles
at nearly 80%.. Otherwise, 75% is a good average
threshold..

An insurance company will not pay up to the
full value of the car to REPAIR the car...
A car is deemed a total loss at 70-80% because
there is a chance that as the vehicle is being
repaired, a supplement or additional costs (like
the cost of RENTAL for another vehicle while the car is being repaired) may force the total
payout over the value of the vehicle...

Even in a situation where a car is deemed a
total loss and the insurance company pays the owner the full value of the car, the insurance
company then will sell the damaged vehicle
for salvage (typically around 20% of the vehicle
value- sometime more and sometimes less) and therefore has paid less than the full value of
the car...


back to the original point, yes..any car with
a salvage title has had some loss to it which
represented a significant risk to the vehicle
whether it is structural or otherwise.

Flood, fire , collision, and hail are common
causes of salvage titles.. A car that has roof damage (from rolling or from a tree) also
generally will be handled as a total loss.

Mark Williams
Dallas, TX
Claim rep by day...





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