Great way to start the holiday weekend....not really....

[Addict]

Originally posted by IALuder
half the price of what you paid for it.

Close to it. I think it varies some what from company to company. Some total at 51%, some at 80%, some at 100% or more.

Here's what seems to the case for most companies:

Example:
Car Retail Value: $10,000
Damages: $8,000
Rental Reimbrsement: $900 ($30/day)
Salvage Value: $2,000 (generally 15-20% of the retail value)

To Total:
$10,000 - $2000 = $8,000

To Repair:
$8000 + $900 = $8,900

This would be a total loss since the cost to repair plus rental reimbursement exceeds 80% value. They come out better by totalling than fixing the car. They can pay you $10,000 and reclaim $2,000 of it making it only $8,000 that they pay.

They have to take into account what they can get for the salvaged car, rental costs (if you bought rentail coverage from them) when totalling a car out.

This is the "simple" version. The complex version is written like this "cost of repair + projected supplements + projected diminished resale value + projected Rental Reimbursement". Though I haven't worked out what this means yet... lol