Auto Insurance Claim Negotiations: Who & What Determines if a Car is Totaled?

This scenario comes up rather often and insurance companies each have their own way of judging whether or not a vehicle is a total loss.  Some will base their decision on the fact that the repairs would cost at least 50% of the value of the vehicle, and for others, it is a much higher threshold, of 70% or even 80% of the value.  One of the interesting factors here is that repair costs can vary by shop and arriving at the actual cash value (ACV) of the vehicle is not an exact science, either.  So these things are variable and often negotiable.

Find out what the insurance company’s criteria are for determining whether a vehicle is a total loss, as well as for determining the car’s ACV.  Then you’ll have something to work with.  If you want to have the car deemed a total loss, you will likely need to prove to them that the cost of repairs is a higher percentage of the value of the vehicle than they believe it to be.  Perhaps there is some damage they have not taken into account.  It is possible that they think the car is worth more than it actually is. You know what kind of condition it was in before the accident. Would that make it worth less than the Kelley Blue Book figure they may be using for its value?  Gather all the information and documentation and, if you can demonstrate to the insurer that the cost to repair the vehicle is higher than the threshold (percentage) they set for determining that a car is a total loss, you may just get them to reconsider their decision.