[kennix]

There are two types of Total Loss. Financial and Structural.

Structural total loss is where the vehicle is damaged to the point that it cannot be repaired to like new condition due to the severity of the crash compromising either the safety system or the structural frame making the vehicle not safe to operate. Normally, very few cars fall into this category. Not because there isn't just cause to declare it unsafe, but because most people don't know it can be declared a structural total loss.

Financial total loss is the most common type of Total Loss. This is where a vehicle has so much damage, that it costs 70% or more to fix it. At that time, it may be declared a total loss by the insurance company. I have people ask me all the time why didn't the insurance company total their car. Well in most states it is up to the insurance company and they may be able to get away with just fixing your car all the way up to 100% of the retail market value.

If your vehicle has a damage estimate more than 40%, it would probably be to your best interest to prevent them from starting work, and have a preliminary inherent diminished value report prepared. This type of report will determine the amount the vehicle's value will diminish due to the accident history. On a newer vehicles this could easily be 6-$10,000. especially if there is any frame damage. Here's how it adds up:

$20,000 car
$8000 in damages
$7000 in inherent Diminished Value
=$15,000 or 75% of the market value of the vehicle. Most insurance companies will normally total the vehicle at that amount.

So why wouldn't you want to just repair your car instead of having them total it? Simple. Below is a newton's cradle. Notice the inertia traveling through the balls? That's the same type of energy that travels through your vehicle when there is a collision. It screws up all types of things that the body shop will never be able to see. And even if the frame hasn't been damaged, chances are, your safety system will not work as designed due to the structural changes the collision and repairs made.
(sorry, for some reason it's not letting me upload the picture. So just imagine 5 balls swinging on a string or DJ with a sock at the VWOC house)

Okay, so what does that have to do with you? If you total your car, the insurance company is going to make you an offer on your total loss. They will normally initialize the negotiation with a very low offer. Normally thousands below actual Retail Market Value. If your car is totaled having an independent appraiser determine Retail Market Value of your car, can save you thousands.

(note: it's 2am in the morning. if I goofed this up, I'll fix it in the morning.

 

[dubblife]

this is great, i was actually just involved in a hit and run last night right after midnight, i'm not sure if they're gonna declare it as total loss or not, but the damage seemed pretty severe. if they do declare it as total loss i'll do what you recommend and get an appraiser to check the retail market value

 

[nitroscope8]

My rabbit was totaled in august last year..... 18+k in damages...

 

[kennix]

this is great, i was actually just involved in a hit and run last night right after midnight, i'm not sure if they're gonna declare it as total loss or not, but the damage seemed pretty severe. if they do declare it as total loss i'll do what you recommend and get an appraiser to check the retail market value

Give me a call and I'll work up a free estimate of what your diminished value and fair retail market value is. If it is severe, and they don't declare it as a total loss, you'll want to immediately get a preliminary diminished value appraisal report, as it may push it to a financial amount that you'll be able to get the car totaled. Give me a call: 503-420-3333.

My rabbit was totaled in august last year..... 18+k in damages...

Hopefully you got close to Retail Market Value. Most people get taken advantage by the insurance companies. On average, I normally move the insurance company about $2000. higher than their "Final" offer.

I just finished a 2000 Mercedes E Class that their Initial offer was $6000, then their appraisers said it couldn't be more than $8000 because KBB retail was $8500. My client settled at $13,500. after the insurance company spoke with me about how I came to my valuation. Even though they told the client their final number was $11,500 (after initially seeing my report). Book values are benchmarks and should be considered as so. Sometimes they are way off, other times they can be spot on.

BTW, no. an attorney was not involved and it did not go to court. I'd say over 90% are settled without an attorney. Attorneys love Diminished Value and Total Loss Cases because they can usually get 20-45% percentage of the settlement with just on short demand letter. I've worked with a lot of attorneys and most go for the quick settlement. I've seen bigger settlements by owners with a little tenacity and armed with a good appraisal than what most attorneys do. Disclaimer: If you are in need of legal advice, you should seek the help of a qualified attorney in your area.

 

[dubblife]

just got off the phone with ken, he was of an enormous help in terms of the steps i should take in the situation where they don't declare it as total loss. i'll keep you guys updated in another thread so i dont go off topic.

 

[kennix]

Thanks, I wish I could be more help. I'm just not familiar with Canada's procedures. Generally, in the U.S. when the amount of Damage is added to the inherent diminished value and it is greater than 70-80%, the insurance company will start looking a little stronger at totaling the vehicle.(unless regulated by the state, they have full decision as to total or not.) As in Dublife's case, I wouldn't want to keep that vehicle. Inertia does strange things when a vehicle is hit on both ends. Looking at the photos, he could very well have frame damage also. I'm guessing he's got about 5-7k in needed repairs, if not more. If this was a U.S. car, it would need about 9-10k financial liability to total. Take, 6k repairs plus probably 3000 to as much as 6k if it had frame damage and they would probably total with a FMRV (Fair Market Retail Value) around 13.

 

[nitroscope8]

Ken, I forgot to update my post. I got a check for few hundred less than what I paid for the car...more than four years prior off the dealer lot. I was more than satisfied.

 

[rabbitjetta]

I know its an old thread but I was involved in an accident in my 11 TDI about a month ago and the car was declared a total loss. It did about 10K in damage to the front end of the car and my insurance company ended up settling at 12K for the car. It was rather upsetting due to the fact I traded in my 13 Passat for this one less than two months before it happened and the second payment had went through the day before.