Total Loss in Oregon

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Total Loss, Getting Your Real Market Value.

There are two different types of Total Loss. Financial and Structural. Your vehicle can be declared a total loss due to either of these Criteria.

Financial Total Loss.

Financial Total Loss is when the cost to repair the vehicle is close enough to the actual cash value of the vehicle and it makes more sense for the insurance company to total it. This percentage can change depending on the insurance company and normally falls to either 70% or 80% or more. So if your vehicle has a Market Value of $20,000. and it needs $16,000. in repairs, chances are they will total the vehicle. Now here’s where it gets interesting. Let’s say they estimate the repairs at $12,000., that’s $4000. less than what is needed to declare your vehicle Totaled. But, many insurance companies will take in consideration if you are declaring diminished value into that total repair estimate. If you have $4000. in inherent Diminished Value, and we can show this before they start work on your vehicle, you may be able to have them declare the vehicle totaled.

Structural Total Loss.

With Structural Total Loss, the vehicle is totaled due to the structural integrity of the vehicle being compromised. In most instances, it is not being safe to drive. Structural Total Loss can be declared after a vehicle has been repaired. Normally if the vehicle looks like it needs to be totaled, it probably should be. In this situation, I normally ask Leif, of Leif’s Auto Collision Center to reinspect the vehicle and help me determine if the repairs were sufficient and if the vehicle is safe to drive. He is one of the few people I trust in the Portland Metro area to perform this type of inspection.

Insurance companies normally try to fight this type of total loss. Especially if the vehicle has a uni-body frame.  They will argue that the rails can be replaced with new rails and that the car will be just like new. No collision technician has the ability to restore a vehicle safety system to absolute new condition if there has been a severe collision to the vehicle. Safety systems are devised to work together and as one. If a vehicle has been hit in the left front, and any part of the vehicle not completely replaced, that system is probably not going to respond as it should. If the metal on the left side was repositioned or repaired, and not replaced, the metal may not crumple at the velocity it should.

For more information about Total Loss, Please feel free to call Ken Nix at (503)420-3333 and he will be happy to discuss it with you.