How Do Insurance Companies Define a Total Auto Loss?

Video Transcript

"A total loss to an automobile is when they cost to repair it is greater or close to the value of the vehicle, and it is just not worth doing. And you can appeal that as well. Everything is a negotiation to a certain extent. Obviously there is only a certain amount that they are going to pay period. If the car is worth ten thousand they are not going to give you twenty. So but, if it is damaged to the extent that it is just not worth putting the money in, and it is not always cosmetic that you can see. Like a Suburban if you get into an accident, and the airbags come out, and the exterior body is not damaged that much. But if it is an older vehicle, and it cost two or three thousand dollars to put the airbags back in then it is not worth doing that if it that, and having the exterior fixed is the same or close to the value of the car. Sometimes if the insurance company considers it a total loss then you can get a set, and you still want the vehicle you can settle your claim with the insurance company, and then sometimes you can pay them X amount of dollars to get a salvaged title for that car. And then you can fix it, and do what you want to with it."