TOTAL LOSSES

We get questioned all the time about total losses. Some people think a total loss has to mean a vehicle was in a train wreck—but that’s not always the case.

In New Jersey, when the damages exceed the vehicle’s value, the vehicle is considered a total loss. There’s a specific set of rules and regulations that determine this, but it can still get a bit complicated.

Let’s say a vehicle is valued at $10,000. If it has $10,000 or more in damage, it’s typically declared a total loss. But sometimes, insurance companies total a vehicle for less than 100% of its actual cash value (ACV). That’s because they consider a few additional factors, like:

• The salvage value (what the damaged vehicle is worth in its current state—often 20% to 50% of the ACV)

• Open items or hidden damage found once the vehicle is taken apart

• The overall cost of repair versus replacement

When calculating the ACV, they look at mileage, factory options, and the overall condition of the vehicle—not including the accident damage. They then compare similar vehicles in the market to determine the value.

Although we’re primarily in the collision repair industry, we handle total losses all the time. We know it can be confusing and stressful, but we’re always here to help walk you through it.

If you ever need advice or assistance, contact Midtown Collision—we’re here for all your car needs!

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