When is a vehicle considered a total loss?

Many horror stories which have haunted the consumers is knowing, ‘When insurance companies total car’? There are many different rules and regulations regarding the over all law. Currently any car whose actual cash value(ACV) is lower than real cost (CVC) is declared to be totaled.

When insurance companies total car?

In many cases very old vehicles have been labeled as total after getting minor bumps. The reason behind that the repair cost of the car is lower than the current value of the car. While the rules defer greatly due to State laws. Overall the insurance company takes the ownership of your total car.

That is when the vehicle certifies for “Salvage”. Pre-Loss actual cash value(ACV) of the vehicle forwarded to the clients. In Some cases the vehicle repaired, re-registered with DMV.  And later sells in the market as “Revived Salvage Vehicle”

Factors determining total loss

  • Is the car damaged beyond repair
  • Does the car have proper papers
  • Driving License of the person who totaled the car
  • Driver was not in influence of alcohol
  • Did the car damaged other property or life
  • The Cost to repair is higher than the actual cost of the car

Even though the criteria varies with the insurance company and State laws. The idea is to re-reimburse the person with the ACV of the car. Further for your kind information if you require to know the insurance threshold rule in all 50 States you can click here for a pdf file.