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?

To determine if a car is totaled, the total loss adjuster will look at where the damage is located on the vehicle and the cost to repair that damage, including parts and labor. They will then compare the cost to the value of the vehicle.

It's important to understand that, with the complex systems found in today's vehicles that include computers, sensors and backup cameras, the damage may be much more costly that it appears at first glance. Adjusters aren't just looking for visible damage, like a dent in your bumper, but what systems inside the bumper may have been damaged.

Myths vs. Facts: Auto Insurance

How do insurance companies decide to total a car?

While each car insurance company approaches the decision differently, many insurers declare the vehicle a total loss if the estimated cost of repairs plus the salvage value equals or exceeds the car's actual cash valueActual Cash Value (ACV) is the current market value of your car, considering depreciation. It's the amount your insurance will pay if your car is totaled or stolen..

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 percent or 80% of the 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?

Insurance adjusters use industry data to estimate the cost of the damage to your car. This includes the average cost of replacement parts in your area and the cost of repairs based on similar damage.

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 manufacturer equipment (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?

If you don't agree with the decision to total the car, or the valuation of it, there are steps you can take to either challenge the insurance adjuster's determination or to reclaim the totaled vehicle.

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 it is forfeiting the salvage value of the car.

State law will also have an impact on whether or not 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.