What constitutes as a "totalled" vehicle?

Question

More than 50% or 75% damage to the car or would it be like transmission or engine doesn't start?

Answer 1

Speaking strictly from "book theory", a car is a "total loss" if the value of the car after the accident added to the amount needed to repair it exceeds the book value of the car before the wreck.

Some insurance companies have a contract with "Copart" (the McDonalds of the wrecking industry), and Copart will pay them a "set" percentage for every wrecked car. If that's the case, the insurer doesn't bother to do the math on every car, they just use a pre-set "Total loss threshold". The total loss threshold is usually 70 to 75% of the car's pre-loss value.

So if the repair estimate is 70-75% of the car's book value, it's going to be a total.

Answer 2

Every insurance company will have a different formula for determining if the vehicle is "totalled".

The insurance company I used to work for would actually get a "salvage value" from the salvage yard (sells used parts off of the vehicle). The salvage value will differ for every vehicle as some vehicles have parts that are in high demand (lots of these vehicles on the road - usually domestic 1/2 tons, etc.), so the good parts off this type of vehicle would have a bigger market, making them more valuable. Another condition that will effect the salvage value it the amount of damages from the accident - was the vehicle hit in the front and the engine, transmission, etc (powertrain) damaged, or in the back and most of the powertrain still useable. A final determination of salvage value would be what shape the vehicle was in before the accident - how many miles, rusted panels, etc. - since this effects the value of what can be saved off of the vehicle in an accident.

The insurance company will add the damages and salvage value together, and if this exceeds the fair market value (or book value - depending on the insurance company) then the vehicle is totalled. Some insurance companies will also add taxes in on the fair market value as they will pay for the taxes up to this amount on a replacement vehicle. (Total amount of damages + salvage value is more than fair market value + taxes = totalled vehicle.)

Hope this helps.

Answer 3

it's usually physical damage, since it's the insurance company that has the authorization to "total" a vehicle. It's not a matter or a part like the engine or transmission crapping out, because those can be fairly easily repaired or replaced. But, if a car is badly damaged in a collision, to where its structure and safety are compromised, then it is considered a "totaled" vehicle and the title is marked as such with the state.

Answer 4

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Answer 5

When the cost of repairs exceeds the value of the car. Or if the airbag has deployed then a car is considered totaled.

Answer 6

A vehicle that will cost more to repair than the vehicle is worth
and other such things as non-repairable damage..

Answer 7

If the cost of repairs is more money than the car is worth--Its totaled

Answer 8

this can only be determined by your insurance adjuster and is based on a cost of repair to value of the vehicle basis

Answer 9

When the frame of the car has damage.

Answer 10

when the cost to fix it exceeds the worth of the vehicle