When a vehicle is damaged and the cost of repairs is approximately 80% or greater than the vehicle’s value, the insurance company may consider the vehicle a total loss (commonly referred to as “totaled”).  In a total loss situation, the insurance provider will generally pay the actual cash value of the vehicle instead of paying to repair it unless you have an “Agreed Value Policy”.

In establishing when a damaged vehicle should be considered a total loss, an insurer will establish a total loss ratio (cost of damages/actual cash value) for that vehicle.  Certain States have pre-determined when a damaged vehicle should be considered a total loss by establishing a specific total loss threshold (total loss ratio converted to %).  States such as New Jersey have no pre-determined total loss threshold, but rather defer to an insurance company’s judgment to establish when a vehicle will be considered a total loss.  While a total loss threshold of 80% is an approximation of when a vehicle may be considered a “total”, in New Jersey this threshold will vary from one insurance company to another.

If you feel your classic or antique vehicle should be considered a total loss, but the insurance company is not willing to do so, contact MMI so that we can consider a creative claim solution to address your situation.

New Jersey Administrative Code, under Title 11. New Jersey Department of Banking and Insurance Division of Insurance (11:3-10.4 Adjustment of Total Losses) provides rules to be followed when a total loss cash settlement is to be provided to an insured as an adjustment for an auto physical damage claim.  Refer to this code for additional information related to your total loss settlement. When you have aa agreed value policy, the value is pre-determined.

 

MMI’s Total Loss Valuation Services:

• MMI will supply you with the most accurate appraisal for your agreed value policy at a reasonable cost
• We will provide an IAAA Certified appraisal for your vehicle that fully documents its condition and options

If you are negotiating a total loss settlement and do not have an agreed value policy you may be forced to invoke the appraisal clause of your policy.   Refer to the Appraisal Clause section of this website for more information.

 

 

YOU DESERVE TO RECEIVE THE MAXIMUM TOTAL LOSS SETTLEMENT

ALLOW MMI TO ASSIST YOU BY PROVIDING AN  EXPERT APPRAISAL!