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IAUTOINFO.COM: AUTOMOTIVE TOTAL LOSS

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AUTOMOTIVE TOTAL LOSS




What is a 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




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.




VEHICLE CONDITION





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. Seamsworn/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 replacementto at least factory-new condition.
2  GOOD  No Obvious damage. 1-3small dings on close inspection.
3  MINORDAMAGE  Multiple dings. Smallnon-collision dents. Surface rust.
4  MODERATEDAMAGE  Small collision dents.Minor rust. Repairable hail damage.
5  SERIOUSDAMAGE  Large collision dents.Non-repairable panels. Severe rust.
PAINT
1  NEW  Recent top qualitypaint job. No visible flaws.
2  GOOD  No damage. 1-3chips/scratches. Swirl marks, can buff out.
3  MINORWEAR  Numerouschips/scratches. 1-2 scrapes. Discolor can buff out.
4  MODERATEDAMAGE  Oxidized/Checking/Fading.Multiple scrapes. Poor repaint.
5  NEEDSREPAINTING  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  MINORDAMAGE  Numerouscracks/dents/scrapes. Cracked lens cover. No emblems.
4  MODERATEDAMAGE  Corrosion. Rust. 1-3trim items broken. Mismatched items.
5  NEEDSREPLACING  Numerous trim itemsbroken or missing. Severe rust.
ROOF (Convertible, Vinyl Top)
1  RESTORED  Recent replacement.Restoration to factory specifications.
2  GOOD  No damages. Minorweather exposure on close inspection.
3  MINORDAMAGE  Faded/discolored.Scuffs. 1-2 holes/tears. Seam stress.
4  MODERATEDAMAGE  Sun/weather damage.Fogging. Cracks. Seams separated.
5  NEEDSREPLACING  Extensive damage. Largecracks/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.





IAUTOINFO.COM: AUTOMOTIVE TOTAL LOSS

Automotive Information for the consumer