If the car’s repair cost or the sum of repair cost plus salvage value meets or exceeds a fixed percentage of the Vehicle Cash Value, this is the total loss. It means now repairing your car isn’t worth it. For instance, 50% is the fixed percentage, and your car’s actual cash value is $33,000. After the vehicle’s accident, if the repair cost or the sum of the repair cost plus the salvage value is $16,500, your vehicle will be a total loss.
There is another formula called TLF. As per the TLF formula, if the car’s cost of repair and its salvage value are equal to the ACV of the vehicle, it’s a total loss. It means if your car’s ACV is $33,000, it won't be a total loss until the repair cost and salvage value of your vehicle equal $33,000 or more.
ACV stands for Actual Cash Value, which refers to the market value for a vehicle before the accident and not the amount you pay to buy it. Suppose you bought the car for $35,000, and before the accident, it was worth $33,000 because of depreciation over the years. Then, your car’s ACV will be $33,000 and not $35,000. An Idaho total loss threshold claim allows you to recover the actual cash value for the vehicle, known as an ACV settlement.
After your car is declared a total loss, it still holds some worth, even after being damaged. It is the salvage value for the vehicle. For instance, your $33,000 vehicle is worth $7,000 immediately after its accident. So, your car’s salvage value will be $7,000.
The Total Loss Threshold is the fixed percentage at which your car is declared a total loss. This percentage is set by the state government and can differ accordingly. If your car’s ACV is $33,000 and its repair cost is also $33,000 or more and is declared a total loss, the total loss threshold limit is 100%.
Idaho total loss threshold laws utilize the TLF (Total Loss Formula) to determine whether it is actually a total loss or not. It means your car will not be a total loss in Idaho as long as its cost of repair plus salvage value equals or exceeds the ACV of the vehicle.
In Idaho, every insurance company that pays for a salvaged vehicle must issue a salvage certificate to the purchaser. They should also surrender a salvage certificate, car ownership papers, and the salvage fee to the department. The deadline for this is 30 days from when the salvage certificate is released.
The following steps will help you file an Idaho total loss threshold claim.
Immediately after the accident, the first thing to do is call your car insurance company and let them know about the accident. You should also provide the insurer with the necessary information about your vehicle.
The insurance company will then send an adjuster to visit the accident spot and inspect the vehicle. They will then assess the extent of the damage and determine whether your car is a total loss, using the Total Loss Formula.
You need to gather all documents related to your car, like the vehicle title, sales bill, and previous maintenance records. You can also research your vehicle’s market value, for which resources, including Kelley Blue Book and NADA (National Automobile Dealers Association), would be helpful.
When the insurance provider declares your car a total loss, they will offer you a settlement amount on the vehicle’s ACV, minus the applicable deductible. If you believe that the offered settlement isn’t fair enough, you can negotiate with the insurer.
If you accept the settlement offer, your vehicle will be declared a total loss. In this situation, you must apply for a salvage title from the Idaho Transportation Department (ITD). The insurer will likely take the vehicle and sell it to a salvage yard after the settlement of your claim. If you decide to keep the vehicle, you need to get it repaired, pass a driving test with this car, and apply for a new title for it.
If you don’t get a good settlement offer even after lots of negotiation with the insurer, you can use these two methods and get a fair settlement.
You can hire an independent professional appraiser, like ADR-Claims. They assess your vehicle, determine its actual cash value, and provide you with a detailed appraisal report. You can use this appraisal report while negotiating with the insurer.
If nothing works, you can look for legal help and hire an attorney. You should hire one who has experience in car accident cases. This will lengthen the settlement process, but will increase the chances of getting a fairer settlement amount.
A total loss threshold claim is a very stressful process that consumes time, effort, and your peace of mind. Even after that, you will likely receive an unfair settlement offer. Worry not, we are ADR-Claims, dedicated to helping you with the best appraisal services at reasonable costs. We conduct a thorough assessment of your car and provide an accurate and detailed appraisal report. Not only that, we also help you understand the whole process for a superior negotiation. Call us for a free quote right away!
Our quick and simple appraisal process can help you recoup vehicle-related losses.
