Total Loss Appraisal
The decision to repair or replace your vehicle should NOT be made without evaluating the entire property damage claim, which includes:
- Pre Loss Value
- Salvage Value
- Cost of Repair
- Loss of Value
- Loss of Use
Pre-Repair Inspection:
After collision-related vehicle damage occurs; it may be to your benefit to hire an independent appraiser that is working for you. A full and complete estimate of ALL necessary repair operations to restore the vehicle to Pre-Loss Condition should be evaluated and documented. Additionally, your loss in market value or diminished value should be evaluated as part of your repair decision. The accuracy and thoroughness of your estimated cost of repairs directly effects YOUR decision to repair or replace the vehicle.
For example:
Your vehicle is worth $15,000 and the cost of repairs is estimated at $7,000. If the estimate is accurate and thorough the vehicle should be repaired (in most states if the cost to repair is under 70% of the value of the vehicle the election of repair is chosen). After repairs you should have your Loss in Market Value assessed as part of your total loss.
But, if the $7,000 cost of repair estimate is increased with a supplement (an additional amount needed to repair the vehicle - found after repairs have begun) by $2,000 and your Loss in Market Value is around $2,500 - YOUR VEHICLE SHOULD HAVE BEEN TOTALED or Replaced and NOT repaired.
An accurate estimate of the cost of repairs is KEY and can eliminate much of this issue in the beginning of the process. It is important to have someone working for you.