If you’ve been in an auto accident, the top concern is the well-being of everyone involved. After that, insurance companies use specific criteria to determine if your car can be repaired. If not, it may be declared a total loss—totaled—and relegated to the salvage yard. Here’s how it happens.

How Your Accident-Damaged Car May Be Sent to the Salvage Yard

1. Actual Cash Value

Generally, an automobile is considered totaled if the costs of making repairs exceed its actual cash value. A claims adjuster considers your vehicle’s make, model, age, mileage, and condition to create an estimate of its overall cash worth. Cars deemed to be totaled usually have a relatively low cash value or extreme damage.

2. Percentage Cost of Repairs

Even if the price to fix your car is less than its actual cash value, the insurance company may still declare it totaled. After calculating the car’s cash value, the company compares the cost of repairs to the vehicle’s overall worth.

Certain insurance companies may consider vehicles totaled when repairs exceed 50% of their cash value. Others may not declare a car to be totaled until repairs exceed 75% of its value or more. For example, an automobile worth $5,000 that requires $4,000 in repairs may be considered totaled—or it may not. It depends on your specific insurer.

3. Salvage Value

Your car’s salvage yard value—the resale value of its metal and parts—is also factored into a total loss. Every insurance company uses its own formula to determine an automobile’s salvage value. In general, it’s calculated based on the overall cost involved with disposing of a car. Scrap values at previous auctions are also considered.

The amount an insurer can recover from salvage is subtracted from the actual cash value to determine a total loss ratio. If this ratio exceeds the limit set by your particular company, your car will likely be declared totaled.

4. State Regulations

The criteria for determining whether a vehicle is a total loss are also affected by state regulations and statutes. These rules can be complicated, and they often vary throughout all 50 states. Learn more about the laws your provider follows by calling them directly.

You have a lot to think about after a car accident or other damaging incident. For reliable towing and salvage yard services in Hamilton, OH, contact Marcell’s immediately. Their trusted experts provide 24-hour roadside assistance, quality used parts, and affordable repairs. Their drivers and vehicles meet the highest standards, so call (513) 867-8889 for assistance or to schedule an appointment. Visit their website for details about their services.