How do adjusters determine if a car is totaled?

Q: Can I hire my own insurance adjuster?

Yes . You can hire a public adjuster to help you with the claim process.

What do auto insurance adjusters look for to determine if a car is totaled?

Adjusters inspect visible and hidden damage, then estimate the full cost of repairs. They review parts, labor, paint, scans and system calibrations. They also check the frame, airbags, suspension, wiring, cameras and sensors because damage to these systems can make a repair much more expensive.

Adjusters aren't just looking for visible damage, like a dent in the bumper, but also for what systems inside the bumper may have been damaged.

Myths vs. Facts: Auto Insurance

How do insurance companies decide to total a car?

Insurance companies compare the repair estimate with the car’s actual cash value (ACV), and follow the rules in the state where the loss occurred. Some states set a percentage threshold. Others allow a total-loss formula. An insurer can total a car even if repairs do not exceed its actual cash value.

The actual cash value is a car's fair market valueThe price at which property would change hands between a willing buyer and a willing seller, where both parties have reasonable knowledge of the relevant facts and neither party is under any compulsion to buy or sell. – or, replacement cost less depreciationDepreciation is the decrease in your car's value over time due to wear and tear, age and mileage. Depreciation is used to determine the actual cash value of a vehicle in the event of a total loss.. Adjusters typically determine a car's actual cash value by looking to their company's proprietary database of values.

Some insurers total the car if repair costs exceed a certain percentage of the car's actual cash value. Common thresholds for totaling a vehicle are 51% or 80% of the vehicle's value, at the insurer's discretion.

Some states impose guidelines for the percentage at which a vehicle can be declared a total loss. This is called a total loss threshold, and it can vary.

How do insurance adjusters estimate damage?

Adjusters compile a detailed list of repair costs after assessing the damage and using local repair rates. The estimate includes replacement parts, labor, paint, towing, teardown, diagnostic scans and safety-system calibration. The insurer will revise the estimate if the repair shop finds hidden damage after work begins.

Most insurance companies will estimate repair costs based on aftermarket replacement parts, but depending on your car insurance policy and where you live, the company may use original equipment manufacturer (OEM) parts in the estimate, which are usually more costly.

PEOPLE ASK

How do I know if my car is totaled?

You can't always tell just by looking at a car if it's totaled. You may have a good idea if there is severe damage, but the only way to be sure is to compare repair estimates against the vehicle's actual cash value.

Can you disagree with the adjuster's decision?

Yes. You can challenge the repair estimate or the car’s value. Request the full estimate and valuation report, then check the mileage, trim, options, condition, and comparable vehicles. You can submit local listings, dealer quotes and repair evidence. You have the right to request an appraisal in the event of a value dispute.

Follow these steps to challenge the adjuster’s decision:

Challenging list value. You're entitled to the pre-accident market price of the car. If it's a total loss, the insurer's valuation, based on the car's make, model, and year, may understate your vehicle's market value. You can argue that your vehicle is worth more than the standard listed price by submitting service and mileage records, as well as affidavits from mechanics.
Disputing an insurance assessment. To dispute the claims adjuster's assessment, you may hire an independent appraiser, contact a consumer representative at the state's department of insurance or, as a last resort, pursue arbitration or litigation.
Reclaiming a totaled vehicle. Most insurers allow owners to retain a totaled vehicle. In this case, you will get a smaller settlement from the insurance company, since the insurance company will forgo the salvage value of the car.

State law will also affect whether you can retain a totaled vehicle. It may have a salvage title and cost more to insure. However, you may get more for the car if you sell it for parts yourself than if you let the insurance company have it.

FAQ: Totaled vehicle

Who gets the insurance check when a car is totaled?

If you own the car, the insurance company pays you directly. If you still owe money on a loan, it will pay the lender first, or make the check payable to both you and the lender. If any money is left after paying off the loan and the deductible, you receive the remaining amount.