What is the Total Loss Threshold for Damaged Cars in Ohio?
What’s the rule of thumb on deciding whether to repair or total a car?
My Mom was just in an accident with a 9 year old car. I’m looking for something like “if damages exceed ___% of value, you shouldn’t repair.” Should I go by trade-in value, private party sale or suggested retail?
I’m certain body shops would say fix the car at any price and car dealers will say “junk it” and buy another car. I don’t trust the advice of either. The car was previously mine so I have a sentimental attachment to it, but I want to be smart about this, too. What’s the rule of thumb on deciding whether or not to fix a car?
Kim
Portsmouth, OH
You ask a good question. Kim. Unfortunately the answer - at least for residents of Ohio - isn’t clear-cut. Unlike West Virginia, which has a 75% total loss threshold, and some other surrounding states with a 70 to 80 percent window, Ohio has no mandatory total loss threshold for junking accident damaged cars and trucks.
In Ohio, an insurance company can spend as much or as little as it wants repairing crashed automobiles for claimants. Ohio insurance laws do not dictate the particular point at which a vehicle totals. I’ve personally seen insurers spend more than the retail value of a car many times for repairs, but I’ve also seen the opposite where insurers were too quick to total, junking cars at 50 percent or less of their retail value. What is the retail value? That’s another game insurance companies play, that for the most part isn’t regulated or watched. Sorry, but we don’t have time to get into that here.
Still, as arbitrary as it sounds many factors go into total loss decisions insurers make. Mostly, concerns center on what the salvage car will bring at auction. When auction prices are down, insurers may be less apt to total cars. When auction sales are up, cars are written off more quickly. For the most part - where insurers are concerned - it’s all about doing what is most advantageous for the insurer with little concern for honoring the wishes and needs of the claimant.
In your case, you didn’t state that insurance was involved, so I’m guessing the total loss decision may be yours alone to make. You might want to keep the car if damages are superficial as opposed to heavy and structural; if you’ve kept the car well-maintained and you know it to be in good overall condition; if you owe little to nothing on the car; if it can be repaired to a crashworthy state again without breaking the bank; if it’ fuel efficient; and if you have sentimental attachment to it. On the other hand, it might be wise to sell the car as junk if the car is damaged extensively, in poor overall condition; in need of expensive maintenance, gets poor fuel economy, etc.
When you are confused about which way to go and there seems to be an equal number of reasons to repair the car or total the car, I’d suggest shopping to see what cars might be available for sale before authorizing repairs to be performed. Often in a down economy one can find a replacement vehicle at a good value as consumers rid themselves of cars and trucks they no longer want or need. As I write this, both new and used cars are at bargain basement prices. You can shop for fuel efficient gas and hybrid cars and trucks online on sites such as the one linked here:
You are wise to be distrustful of both body shops and car dealers. While there are good, honest people working in both industries, those who are dishonorable and greedy outnumber the good by a vast majority. Therefore, it’s in your best interest to remain guarded.
I hope I’ve answered your question about the point at which cars and trucks should be totaled out. I’m certain, Kim, if you do your homework you’ll make a wise repair or purchase decision - one that’s right for you.