Total loss theory. What is the base of it. I mean total loss

by rali » Mon Mar 05, 2012 06:58 pm
Posts: 1
Joined: 05 Mar 2012

What is the standard ratio of vehicle total loss claims? or what is the practice

Total Comments: 2

Posted: Tue Mar 06, 2012 11:35 am Post Subject:

The total loss ratio is not standardized and is generally dictated by state law. Most insurers would consider a vehicle to be totaled if the cost of repair/replacement exceeds 75-80% or more of the vehicle's market value.

Posted: Tue Mar 06, 2012 03:35 pm Post Subject:

75-80% or more of the vehicle's market value.


The term is ACTUAL CASH VALUE. Replacement Cost minus Depreciation = Actual Cash Value. When the ACV is less than 75%-80% of the cost of repairs, the vehicle will be considered a total loss.

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