How Insurance Companies Determine If Your Car Is a Write-Off

I am a single mom, living in Detroit, Michigan. I had a 2012 Honda Civic that got severely damaged in an accident three years back. I called my insurance company and they inspect it for auto salvage before deeming it as a write-off. They did so as the cost of the repairs of damages that resulted in the collision were less than its value after deducting the salvage or recycle value. I sold it as there is a big market for salvage vehicles for sale. Here is the whole process of how my insurance determined it to be a write-off:

• An appraiser representing the insurance company calculates how much your undamaged car was worth exactly before its collision. They find out the repair cost and see if repairs are feasible or not.

• They take in many factors like odometer reading, model, make, and year to figure out its value.

• They also take into account any automotive equipment that was added to the vehicle, unrelated damages, options, the type of engine, and the car's overall condition.

• They also study independent market survey reports that tell them how much the same model cars got sold for in the market as the selling price is also used to determine the cash value of the vehicle.

• They also go for the values listed in classified and dealer ads, websites, and industry-standard publications.

After taking everything into consideration, my insurer deemed my car as a write-off and offered me a settlement against it which I did not agree with and compared the offer with similar vehicles and presented them with my evidence and findings. They processed my application and increased the settlement amount a little. The State branded it as Salvage and I was able to sell it in an auction that sold salvage vehicles for sale with the help of a dealer.

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