Total Loss Formula San Diego CA

Your vehicle can get pretty banged up after a collision, but is your car a total loss after an accident? Determining if your car is a total loss after an accident is a common issue for many drivers in San Diego, El Cajon, and Kearny Mesa. So, to make things a bit easier and much less stressful, here’s a look at how some insurance companies decide if your car is a total loss after an accident.

What Is a Total Loss?

The definition of a total loss will depend on the policies and statutes of the state you live in, as well as your insurance provider. Generally, a car is deemed as a total loss when the cost of repairs is more than its Actual Cash Value or ACV.

For example, if your car needs $7,000 worth of repairs, but is only worth $5,000, then your vehicle would be considered totaled.

Is My Car a Total Loss?

There are a few things that need to be done before your insurance company can decide if your car is a total loss after an accident. When you file a claim, you’ll need to have your vehicle inspected at a trusted auto body shop. Professional automotive technicians will check its overall condition and provide you with a repair cost estimate.

Then, your insurance company will determine the ACV of your vehicle based on a number of several factors. Typically, the ACV will depend on your car’s age, condition, mileage, options, and overall resale value.

After that, your insurer will calculate the salvage value of your car. The salvage value is how much your insurance company could sell your car for in its damaged condition.

Total Loss Formula

Once the repair costs, salvage value, and ACV are calculated, your insurance provider will use a Total Loss Formula (TLF) to see if your vehicle it totaled. The TLF in California is Cost of Repairs + Salvage Value ≥ Actual Cash Value.

If the sum of the repair costs and the salvage value is more than or equal to the ACV, your car is deemed a total loss.

What to Do if Your Car Is a Total Loss

If your vehicle is a total loss after an accident, your insurance company will pay you the ACV. After that, you’ll need to transfer the title to the agency, and they’ll be able to take your damaged car off your hands.

From there, you’re free to shop for a brand-new car. Of course, you don’t have to wait until your damaged vehicle is gone to buy a new one. If you’ve recently been in an accident, you’re more than welcome to stop by Norm Reeves Toyota San Diego to browse our selection of trusted vehicles.

Schedule a Post-Accident Inspection Now

Figuring out if your car is a total loss can be a stressful process for drivers in San Diego, Kearny Mesa, and El Cajon. Fortunately, Norm Reeves Toyota San Diego is here to help. If your car was involved in a collision, stop by our collision center to schedule an estimate today.