Totaled Car Value Calculator

If you’ve been in an accident, you may be making an insurance claim. You’ll want to know whether your insurance company will pay for the damages and how quickly you can get the vehicle back on the road. However, sometimes the damage may make repairs too expensive for the car’s current value — what insurance companies call a “total loss.” 

If you’re worried about the situation, can you find a total loss car value calculator? How do insurance companies calculate a total loss? Read on to learn how you can get this information.

Is there a total loss value calculator for your car?

Insurance companies will only pay to repair a car if the repair costs would be less than a certain portion of the fair market value. Unfortunately, the industry has no specific formula for calculating this, and the approach may vary widely depending on each insurance company’s policy and some state rules. So there is no uniform insurance total loss payout calculator that will apply in every situation.

Certain states employ total value thresholds or total value formulas, and insurance companies that market within those states must consider these rules. An insurance company will then apply its own calculations to determine if it will repair the vehicle or write it off as a loss.

Do insurance companies use a totaled car value calculator?

To calculate the insurance value of a car that has been damaged, insurance companies compare it to similar cars in the area using a database like the Kelley Blue Book (KBB). Alternatively, a professional appraiser will be used to decide on a relevant figure. Other amounts may be added to the equation, such as the cost of title, registration fee, or sales tax.

Many insurance companies may have proprietary formulas to help determine whether to total a vehicle. You may get an indication of its approach by looking at the fine print in your policy.

What input do states have in the process?

Sometimes, the state will insist on issuing a salvage title for a vehicle if damage exceeds a particular threshold. Each insurance company is free to make its own decision if the vehicle repairs fall below the state’s automatic “salvage title threshold.” However, this may determine whether the vehicle is now classified as salvage or whether it retains a clean title.

For example, Indiana state law says that if the vehicle’s repair cost exceeds 70% of its fair market value, it must become a salvage vehicle. This rule also applies if the decision-makers at the insurance company opt not to repair it. In Nevada, the threshold is 65%, and other states use their own formulas.

Who receives the residual value of a totaled car?

If the company decides that it will not pay for the damage, it will give you the actual cash value of the vehicle instead, less any deductible you have. If you have leased the vehicle, it’ll make the payment directly to your bank or financing company. If you owe more than the determined value, you’ll need to pay the difference between the insurance payout and your remaining loan balance.

Since a new vehicle can depreciate as soon as you drive it off the lot, you may be at risk if you lease or finance a car that is quickly “totaled” by an insurance company. If you don’t pay off the vehicle as quickly as its value depreciates, you should consider buying GAP insurance from your insurance provider. This type of insurance would pay off the difference between your balance and the insurance payout in this situation.

How to Calculate the Insurance Value of a Car at Home

You can get a general idea of what the insurance company is likely to say by comparing the repair estimate to figures that you find in the Kelley Blue Book. This online resource will give you a car value estimate for free, based on your make, model, year, and condition before the wreck.

Is there such a thing as a car total loss value calculator?

Each insurance company uses its own formula when determining whether a vehicle will be a total loss. Sometimes, the company will consider state minimum thresholds in its calculations, too. You can make your own rough calculation by comparing the mechanic’s repair bill to an online resource like KBB.