What are the conditions for declaring a car as a total loss?
2 Answers
When the actual repair cost of the insured vehicle reaches or exceeds 80% of its actual value, and both the insurer and the insured agree through negotiation, the vehicle can be declared a total loss. Here is detailed information about auto insurance: 1. Overview: Auto insurance, also known as motor vehicle insurance or car insurance, is a type of commercial insurance that covers personal injuries or property damage caused by natural disasters or accidents involving motor vehicles. 2. Additional Information: Auto insurance is a category of property insurance and is relatively new in the field of property insurance. In its early stages, auto insurance primarily covered third-party liability and gradually expanded to include risks such as collision damage to the vehicle body.
Last time my car was half submerged in water, the insurance company came to inspect it and immediately declared it a total loss. Generally speaking, when the repair costs exceed 60-70% of the car's actual value, insurance companies tend to opt for totaling it. Some local regulations even stipulate that if repair costs surpass a certain percentage of the policy's assessed value or the car's market price, it's considered a total loss—like in cases of severe crashes where airbags deploy and the frame gets bent. Older cars get the short end of the stick; even moderate accidents can easily rack up repair bills exceeding the car's worth, making repairs uneconomical. Additionally, flood-damaged cars are troublesome to fix and pose significant safety risks, especially if water levels rose above the dashboard. Even if they run temporarily, electrical issues often crop up later, which is why insurers usually recommend totaling them.
