Total Loss Thresholds Explained

Total Loss Thresholds By State – Sell Your truck to TruckBuyerUSA For More Cash!

What is total loss and what does it mean for your auto insurance? When your truck is damaged in an accident, your insurance carrier will have it looked at by a professional mechanic shop with two things in mind. One, what is the total truck damage; and two, what costs are necessary to repair it. Total loss thresholds vary by state and depending on what your state laws are it could be deemed a totaled truck and issued a salvage title. On the other hand, your insurance company may pay for the repairs. Either way they will issue a check in as small an amount as possible to resolve their issue. A.K.A. the cheapest way out for them to save money and you lose! This might be a good time to sell your truck and get more than they will pay you.

Insurance companies declare trucks a “Total Loss” when they cost more to repair than the cash value they place on the vehicles. This type of claim requires more effort on the insured’s part than small claims for minor damages. In this article, we will discuss all aspects of a total loss.

Total Loss Claims and Actual Cash Value 

First, a truck will need to have comprehensive or collision insurance or property damage liability (PD) coverage in its policy. Property damage coverage is mandatory in all states. The way to receive PD payment is by filing a claim against the other driver and they must be the negligent driver in the crash to receive compensation from their insurance carrier. However, the easiest way to be PD compensated is to file a claim with your own insurance company via a collision insurance claim – collision covers you if you were at whether you were at fault or not.

Provided you show no immediate injuries (because you need to get medical attention first if required), you file an insurance claim with your carrier as with any other accident. A claims adjuster will inspect your truck to assess all damages. This is when a total loss determination will be made it meets the criteria. If the adjuster decides, repair costs to your truck are more than its cash value, or worth, according to your state’s laws or your insurance carrier’s guidelines then it will be a total loss. It is not always as simple as just a check list though, rules and regulations vary by state with some using a Total Loss Threshold (TLT) to determine damages versus value. In some states, TLT needs to only exceed a specific percentage of a damaged truck’s value to be deemed a total loss. Twenty-one states have set percentages by law with the others using the TLV – Total Loss Formula. This means if the amount of repair costs plus the salvage truck value exceeds the vehicle’s actual cash value then it is considered a total loss and the insurance company declares it totaled and applies for a salvage title and proceeds to write you a check. But guess what? You can buy back your truck and get more for it from us. TruckBuyerUSA.com will pay you more on top of what you get paid out by your insurance carrier to “buy back”. You can sell your damaged truck to us fast, safe, and easy and have extra cash in the bank!

TLF States versus Total Loss Threshold States

What Happens When Your Truck Is Declared a Total Loss?

If you agree it is a total loss and to accept the value your insurance company has place on your truck, then there are some things to do to speed up the process of getting that small check.

• Remove all personal items and the license plate(s).
• Provide the truck’s key(s) to the claim adjuster.
• Complete all associated paperwork required.
• Contact a leasing company to lease a vehicle, borrow a car or truck, or buy another vehicle.

The quicker you do all of this, the smoother the process and the faster you will have a small check in your hands. Once the first three things are done the insurance company takes ownership, notifies the Department of Motor Vehicles the truck has been totaled, and requests a salvage claim. They then sell the damaged truck to a company specializing in salvaged vehicles.

Keeping Your Damaged Truck When It Is a Total Loss

If you decide you want to keep your totaled truck, your insurance company will gladly let you do a “buy back”. This means they will let you keep your damaged truck and pay you less to keep it. The Actual Cash Value minus the salvage value determines the amount – when a vehicle is salvaged it still has parts value and possibly the potential of being restored.

We Buy Trucks – Damaged or Not – Running or Not

Do not worry about getting less money from your insurance company because we will give you the highest cash value you will find anywhere else. This means you get money from your insurance company and then you can sell your truck to us to get top dollar for it to boot! That’s right! We buy trucks damaged or not, at a total loss threshold or not, running or not, and we do it fast, safe, and easy! We will schedule all appointments, come to you, and pick it up! You get fast cash in the bank! We customize the entire process around your busy schedule and make it convenient for you! Don’t wait, contact us today and sell your damaged truck fast and for the highest price!