I am just curious on what is their basis of the car being declared 'totaled'.

What is considered the frame? of the car? if that is bent or dented is that frame damage?


So is the car totaled?

I've also heard that if the parts + labor exceed anywhere above 2/3 of the car's value then it is considered totaled.

 

Also, how does insurance know how much money to give you for your car if it is considered totaled? lol I was just wondering about all these topics and none of my friends are online so you guys get to help me out.

 

They know how much to give you based on how much the car was worth prior to it being totaled. Like mileage, year, average price etc. Usually the lowest amount possible listed on KBB.com.

 

The definition is usally defined by statute. It usually differs from state to state.

Most insurance polices pay ACV (Actual Cash Value) which can be determined by a book value and/or market survey. There are other ways but those are the 2 most common. Most insurance companies use vendors such as NADA and Audatex to run these reports for them.

James

 

As said above, book value and market value are generally used to determine the payout. A car is generally considered totaled if the cost to repair damages is more than the value of the car minus the salvage value. So say the car is worth $20,000 pre accident. If repairs cost $18,000, which is less than the pre accident value, but salvage value is $5,000, the car will still be totaled because they could pay you the $20k, salvage for $5k, and only come out $15k in the hole instead of $18k.

 

 

The value of the car is unfair to those who have lots of money invested.
For awhile with my MX-6, I had it insured for $25,000 and all the aftermarket parts were covered.