Insurance Total Loss

   - Total Loss: When the cost of repairs to your vehicle exceeds the value of your vehicle.
   - Borderline Total Loss: When the cost of repair to the vehicle does not reach the Total Loss Threshold but the damages may be within $100.00 to $1,000.00. Depending on how much hidden damage there is, the appraiser may determine that any additional damages may or may not exceed the Total Loss Threshold.
   - Total Loss Threshold: All Insurance companies have different Total Loss Thresholds. Depending on the company guidelines and the software that a company uses will determine when a vehicle reaches the Total Loss Threshold. Some companies use 75%, others may use 80%. For example, if the mid blue-book value of the vehicle is $10,000, the Insurance company would receive a Threshold Warning at either $7,500 or $8,000. This doesn't mean that the vehicle is a total loss. This is a guide to tell the appraiser that they are close to totaling out the vehicle.

   Q: Why do the Insurance Companies use the Threshold?
   A: Once the vehicle is torn down there may be additional damages that put the cost of repair over the value of the vehicle.

   Q: If I own the vehicle do I have to release it to the Insurance company?
   A: Maybe! Depending on what your policy states may determine if you can keep the vehicle.

   Q: Can I keep the vehicle and repair it even though it is a total loss?
   A: Depending on you policy. Generally, if you keep the vehicle you will have to sign a waiver that states: The Insurance company
       will not be responsible for the amount due for repair to the vehicle if there are additional damages.

Q: Does the condition of my car determine how much money that I get back?
A: Yes.

Betterment (Depreciation): A specific percentage, determined by the estimator, deducted from the cost to repair or replace a particular part in the event it is repaired or replaced with a part that is of a higher quality and will increase the value or condition of the vehicle. Betterment is described as an improvement that increases the value of property and is more extensive than mere repairs. (For example, your right front tire, which is almost bald, is damaged due to a collision loss. Since a new tire is replaced for the old one, you are bettering the component. Thus, a certain percentage of the cost is charged to the vehicle owner.)

Below is a BETTERMENT (DEPRECIATION) list which itemizes the betterment percentage charged to the vehicle owner.

ITEM

LIFE EXPECTANCY

APPLICATION OF BETTERMENT

INFORMATION REQUIRED

EXCEPTION & EXPLANATION


CLUTCHES Manuel transmission only and includes all component parts.	100,000 MILES	Based on 100,000 miles, apply 1% per 1,000 miles	MILEAGE	N/A
MAINTENANCE ITEMS Plugs, Plug wires, air and fuel filter brake pad and shoes.	50,000 MILES	Based on 50,000 miles, apply 1% per 500 miles.	MILEAGE	N/A
BATTERIES Regular or maintenance free.	Pending or battery warranty.	Month in use compared to warranty. Ex. 12 months use - 48 months warranty. 25%	Determine the number of months in use and number of months guaranteed by warranty.	No betterment in first three months of usage. 10% per year of use if warranty is valid.
ELECTRONIC COMPONENTS Starter, alternators, fuel and other pumps.	100,000 MILES	Based on 100,000 miles. Apply 1% per 1,000 miles.	MILEAGE	N/A
ELECTRONIC COMPONENTS Computer box, switches, motors other than listed above.	100,000 MILES	Based on 10% per ever 10,000 miles.	MILEAGE	Subject to discretion.
SHOCK ABSORBER Conventional type.	Standard - 60,000 miles Heavy duty - 60,000 miles.	Based on 60,000 miles. Apply 1% per 600 miles.	MILEAGE	No LKQ should be used unless authorized by the vehicle owner.
SHOCK ABSORBER McPherson type.	60,000 miles apply to the insert only. If replacing entire strut assembly, determine the cost of an insert to obtain depreciation.	Based on 60,000 miles. Apply 1% per 600 miles.	MILEAGE	No LKQ should be used unless authorized by the vehicle owner.
EXHAUST COMPONENTS Including catalytic converter.	100,000 MILES	Apply 1% per 1,000 miles of use.	MILEAGE	N/A
SOUND EQUIPMENT Radio, speakers, tape players, etc.	10 YEARS	10% per year	By date of purchase	Subject to discretion.
TRIM Upholstery: Seats, headliners, carpet, other interior trim.	10 YEARS	10% per year	Year of vehicle	Subject to discretion.
TRIM Removal floor mats.	5 YEARS	20% per year	Year of vehicle	Subject to discretion.
TOPS Vinyl convertible tops, roof covers, boots, etc.	10 YEARS	10% per year	Year of vehicle	Subject to discretion.
TOPS All Canvas items	5 YEARS	20% per year	Year of vehicle	Subject to discretion.
PAINT Partial vehicle (no betterment taken) Complete vehicle.	10 YEARS	10% per year	Year of vehicle	Subject to discretion.
TIRES	60,000 for premium radial 25,000 for bias belted. 50,000 for standard radial.	1/32 = 90% 2/32 = 80% 3/32 = 70% 4/32 = 60% 5/32 = 50% 6/32 = 40% 7/32 = 30% 8/32 = 20% 9/32 = 10% 10/32 = 0%	Per Invoices	N/A

ADDITIONAL BETTERMENT
(Component Breakdown)

ITEM

LIFE EXPECTANCY

APPLICATION OF BETTERMENT

INFORMATION REQUIRED

EXCEPTION & EXPLANATION


A/C COMPRESSOR	100,000 MILES	Based on 100,000 miles. Apply 1% per 1,000 miles.	MILEAGE	N/A
A/C CLUTCH	50,000 MILES	Based on 50,000 miles, apply 1% per 500 miles.	MILEAGE	N/A
A/C BELTS	50,000 MILES	Based on 50,000 miles, apply 1% per 500 miles.	MILEAGE	N/A
AUTOMATIC TRANSMISSION	100,000 MILES	Based on 100,000 miles. Apply 1% per 1,000 miles.	MILEAGE	No betterment applied if a Rebuilt or LKQ engine is used.
STANDARD TRANSMISSION	100,000 MILES	Based on 100,000 miles. Apply 1% per 1,000 miles.	MILEAGE	No betterment applied if a Rebuilt or LKQ engine is used.
CLUTCH TRANSMISSION	50,000 MILES	Based on 50,000 miles, apply 1% per 500 miles.	MILEAGE	No betterment applied if a Rebuilt or LKQ engine is used.
DIFFERENTIAL TRANSMISSION (REAR END)	100,000 MILES	Based on 100,000 miles. Apply 1% per 1,000 miles.	MILEAGE	No betterment applied if a Rebuilt or LKQ engine is used.
SUPER CHARGER	100,000 MILES	Based on 100,000 miles. Apply 1% per 1,000 miles.	MILEAGE	No betterment applied if a Rebuilt or LKQ charger is used.
TURBO CHARGER	100,000 MILES	Based on 100,000 miles. Apply 1% per 1,000 miles.	MILEAGE	No betterment applied if a Rebuilt or LKQ charger is used.
WHEEL BALANCE	10,000 MILES	N/A	N/A	N/A
FRONT END ALIGNMENT	10,000 MILES	N/A	N/A	None allowed if tires have previous uneven tread wear.
BRAKE SHOES AND PADS	30,000 MILES	Based on 30,000 miles. Apply 10% per 3,000 miles.	N/A	N/A
BRAKE DRUMS AND ROTORS	100,000 MILES	Based on 100,000 miles. Apply 1% per 1,000 miles.	N/A	N/A
WHEEL BEARINGS	100,000 MILES	Based on 100,000 miles. Apply 1% per 1,000 miles.	N/A	N/A
AXLE BEARINGS	100,000 MILES	Based on 100,000 miles. Apply 1% per 1,000 miles.	N/A	N/A

NOTES

- If parts replaced with rebuilt or LKQ guaranteed parts, then no depreciation or betterment should be applied to that part.
- Improper care, change or auto ownership, or transfer of battery to different auto invalidates the warranty.
- Vehicle owner may be responsible for all betterment on any of the above listed items.

Interior Vehicle Components

SEATS

1	RESTORED	Top quality replacement to at least factory-new condition.
2	GOOD	No damage/discoloration. Slight wear. Soil removed with detail.
3	MINOR WEAR	Stains. Seams worn/frayed/strained. 1-3 burn marks/holes
4	MODERATE WEAR	Split/cracked. Seams separated. Numerous holes. Small tears.
5	NEEDS REPLACING	Large tears/holes. Frame shows. Seat missing or shredded.

CARPET

1	RESTORED	Top quality replacement to at least factory-new condition.
2	GOOD	No damage/discoloration. Slight wear. Soil removed with detail.
3	MINOR WEAR	Stains.1-3 burn marks/holes. Light fading. Wear under pedals.
4	MODERATE WEAR	Small tears. Numerous holes. Extensive fading/discoloring.
5	NEEDS REPLACING	Large tears/holes. Missing sections. Shredded. Mildew/rot.

DASH (Interior Trim, Door Panels)

1	RESTORED	Top quality replacement to at least factory-new condition.
2	GOOD	No damage/discoloration. Slight wear. Soil removed with detail.
3	MINOR DAMAGE	Discoloring/scratches/small cracks. 1-2 knobs/switches gone.
4	MODERATE DAMAGE	Sun damage. Large cracks. 1-2 gauges broken. Tears/cuts/holes.
5	NEEDS REPLACING	Extensive tears. Large rips. Missing/disconnected/torn out.

GLASS

1	RECENTLY REPLACED	New windshield with no damage of any type.
2	GOOD	No damage. 1-3 small pits. Light scratches on close inspection.
3	MINOR WEAR	Pits. 1-3 chips. Multiple scratches. Fogging possible
4	NEEDS REPAIR	Large chips. Large scratches. Cracks that don't impede view.
5	NEEDS REPLACING	Shattered glass. Missing glass. Cracks interfere with view.

HEADLINER

1	RESTORED	Top quality replacement to at least factory-new condition.
2	GOOD	No damage/fading/tears/discoloration. Soil removes with detail.
3	MINOR WEAR	Stains. Small tears.1-3 holes. Burn marks. Isolated sagging.
4	MODERATE WEAR	Large tears/burn holes. Sagging in multiple areas.
5	NEEDS REPLACING	Shredded. Long tears. Disconnected. Missing section.

Exterior Vehicle Components

BODY (Includes Truck Bed)

1	RESTORED	Top quality replacement to at least factory-new condition.
2	GOOD	No Obvious damage. 1-3 small dings on close inspection.
3	MINOR DAMAGE	Multiple dings. Small non-collision dents. Surface rust.
4	MODERATE DAMAGE	Small collision dents. Minor rust. Repairable hail damage.
5	SERIOUS DAMAGE	Large collision dents. Non-repairable panels. Severe rust.

PAINT

1	NEW	Recent top quality paint job. No visible flaws.
2	GOOD	No damage. 1-3 chips/scratches. Swirl marks, can buff out.
3	MINOR WEAR	Numerous chips/scratches. 1-2 scrapes. Discolor can buff out.
4	MODERATE DAMAGE	Oxidized/Checking/Fading. Multiple scrapes. Poor repaint.
5	NEEDS REPAINTING	Large damage. Discolored. Color mismatch. Primer areas.

TRIM (Exterior trim including: Mirrors, Grills, Lamps, Bumpers, Wheels)

1	NEW	Recent replacement. Must meet original equipment quality.
2	GOOD	No damages. 1/3 marks. Shiny chrome/brightwork/colored parts.
3	MINOR DAMAGE	Numerous cracks/dents/scrapes. Cracked lens cover. No emblems.
4	MODERATE DAMAGE	Corrosion. Rust. 1-3 trim items broken. Mismatched items.
5	NEEDS REPLACING	Numerous trim items broken or missing. Severe rust.

ROOF (Convertible, Vinyl Top)

1	RESTORED	Recent replacement. Restoration to factory specifications.
2	GOOD	No damages. Minor weather exposure on close inspection.
3	MINOR DAMAGE	Faded/discolored. Scuffs. 1-2 holes/tears. Seam stress.
4	MODERATE DAMAGE	Sun/weather damage. Fogging. Cracks. Seams separated.
5	NEEDS REPLACING	Extensive damage. Large cracks/tears/holes. Frame visible.

Mechanincal Vehicle Components

ENGINE

1	NEW OR REBUILT	Documented recent rebuild. New engine replacement.
2	WELL MAINTAINED	Clean/good condition. Maintenance performed/documented.
3	MINOR WEAR	Belts/accessories show wear/corrosion. Minor oil/fluid leaks.
4	NEEDS MINOR WORK	Belts/accessories need replacing. Extensive oil/fluid leaks.
5	NEEDS MAJOR WORK	Covered in oil/grime. Needs mechanical work. May not drive.

TRANSMISSION

1	NEW OR REBUILT	Documented recent rebuild. New transmission replacement.
2	WELL MAINTAINED	Clean/good condition. No leaks. Maintenance documented.
3	MINOR WEAR	Minor fluid leaks. Maintenance may not have been performed.
4	NEEDS MINOR WORK	Immediate work required. Clutch slipping. Major fluid leaks.
5	NEEDS MAJOR WORK	Covered in oil/grime. Needs mechanical work. May not drive.

TIRES

1	NEW	80-100% of tread. Rubber nubs visible amid tire tread.
2	GOOD	Tires are in good condition. 30-79% of tread remains.
3	WORN	0-29% of tread remains. Wear bar visible amid tire tread.

- Information is determined using the ADP AUTOSOURCE guide for Total Losses. This is just one of the methods to run the evaluation of your vehicles. Other companies figures may vary slightly.

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