Auto Insurance Claims: total loss after an accident, diminished value, car light

Question
Richard, my son was in accident in my car, which was valued at 33K (what I owe on it) before the accident.  The repair shop has estimated repairs at 20K.  I won't be able to sell the car for more than 24k/25k after the repairs (because I would feel obligated to tell the buyer about the repairs). Is there anyway to get the insurance company classify my car as a total loss?

Thanks for your help.

Answer
Hi Valerie,

When Is A Vehicle A Total Loss?

Financial Total Loss
Most insurance companies will declare a car, light truck, or SUV to be a total loss when the preliminary cost of repairs reaches some pre-determined percentage of the vehicle's value. Generally, the percentage used is anywhere from 70% to 80%. A total loss is declared when it is determined that it is in the insurance company's best financial interest to declare the vehicle a total loss. This percentage is an insurance industry practice and in most cases is not related to a state law. There are only a few states that require a vehicle be declared a total loss when a certain threshold is met. Most states allow an insurer to repair a vehicle all the way up to 100% of the vehicles value.  Another way insurance companies calculate if a vehicle should be totaled is to determine what they could sell the salvage for and then subtract that figure from the value of the vehicle. If the cost to repair the vehicle exceeds that figure then the vehicle is a total loss.

However, insurance companies tend to only look at the preliminary estimate and generally do not take into account the likelihood of hidden damage and other expenses. These items include the cost of a rental car and the diminished value of the vehicle after the repairs are completed.  By adding the cost of repairs, rental expense and diminished value, most vehicles should be totaled when the repairs are at about 60% of the vehicle's value.  

For more information on diminished value and how you can obtain documentation that may help convince the insurance company to total your vehicle, visit www.collisionclaims.com .

They can provide preliminary documentation to help you to get your vehicle totaled.  

I Hope this helps
Richard Hixenbaugh