When do they total a car after an accident.?

Question

Does anyone know what percentage of the value of the car the damage has to be before they total it after an accident?

Answer 1

The "total loss threshold" varies from one insurer to another, but for those with a set threshold, it's usually between 70 to 80% of market value.

Many insurers have a contract with CoPart, the McDonalds of the wrecking industry. CoPart agrees to pay the insurer a standard percentage of market value for every car they get from them, so the insurer can affix the total loss threshold and reduce the entire thing to a procedure.

Smart Insurers arrive at the total loss threshold by subtracting the total loss value of what's left of the car from what the car was worth before the wreck, and viola! The total loss threshold.

Obviously some cars are worthless, like Tempos and Neons, other cars are like gold to a junkyard, cars like Honda and Porsche. So the value of the wrecked car varies greatly.

So to answer your question, the damage on a car must be below the total loss threshold for repairs to be approved by your insurer.

But there's something you have to remember. It's not their car. It's YOUR car. You can do anything you want with what's yours. Your insurance is just a financial device that you can apply however the heck you want. The contract the insurance company has with you may limit what they pay, but they can't tell you whether you can repair your car or not, and they certainly can't take your car from you if you don't want them to.

Answer 2

The definition of "totaled" can vary depending on the insurer and the state...the standard answer is when the cost of repairs is greater than the value of the car...but in some instances it can be when repairs are greater than 50-60% of the value. Sometimes if the car's frame is bent too badly to straighten or repair, they will total the car regardless of the cost in relation to its value.

I'd check with your insurance agent to be sure what applies in your area.

Hope this helped.

Answer 3

Lots of BAD answers here. The total loss threshold varies from state to state, not company to company. Some states are set at 70% (meaning cost to repair the vehicle will meet or exceed 70% of the MARKET value), some at 85%, some have no ceiling (100%). It has nothing to due with particular type of damage or replacement value OR salvage value. State insurance comissioner and board set the thresholds.

Answer 4

It is when the repairs cost more then what the value of the car is is when your insurance will total it off but...it depends upon your car if your get a good amount of money back for a new car...I got over $6000.00 after the insurance company wrote my car off as a total lost

Answer 5

Varies slightly between insurance companies but as a general rule, when the cost of repair equals 70% of the total value of the vehicle when valued at $10k or less, 75% when valued at $10k to $20k, 80% when $20k and above.

Answer 6

An adjuster will come and look. They will make an estimate as to how much it would cost to fix the vehicle. If that amount is more than the value of the car, they will total it.

Answer 7

When the cost of repairs is more than the car is worth. Or if the frame is bent.

At least that is what my insurance agent told me when I got into an accident with my older car. They told me that I would either get what the car was worth (to them) or to keep the car (which made no sense).

Answer 8

It is normally if the cost to repair is 75-80% of the Actual Cash Value or more. Cowboy is pretty much right on too. You have to ask the company because the laws of the state vary.

Answer 9

It varies state by state, and ALSO with the total value of the car. Usually it's somewhere between 75% - 85%.

Answer 10

Because the bite was bigger than the crunch...
Seriously, if the accident caused more damage than the car was worth, they call it totaled...You never get enough to buy a new car, anyway...