Most individuals know that vehicle insurance is important. It is there to protect them in a variety of different types of circumstances. Most often claims are as a result of collisions. The general assumption is that if a claim gets put in that the vehicle will get repaired. There are times when the damage is so severe that the insurance company will determine that it is a write-off.

When Is a Car Written Off By Insurance Company?

The main priority when the car is going to be a write off is how much is the insured going to get. Some figure that they are going to get what they paid for their vehicle. This is often not the case. There is a process that the insurance company is going to go through to determine what the payout will be.

How Much Damage to Write Off a Car Ontario?

Damage

Insurance companies differ in the way that they handle claims. Just as they handle insurance different according to the provinces. In general, when it comes to a write off most will follow a standard process. Ontario is a busy province with a lot of insured drivers. It is not uncommon for insurance companies to have to handle write off claims. To be able to do this they have to determine how much damage there is to the vehicle. They have professionals that they use as claims investigators. These professionals are well versed in the type of damage done to a vehicle. They will be able to determine if the car is worth fixing. Claims Canada shows that if the vehicle has 17% damage then most likely it is going to be considered as a write-off.

Car Write Off Calculator Ontario

Once the vehicle is to be a write off the insurance company goes through a process. Of doing a car write off the calculation. This is a set of criteria that the insurance companies will use to arrive at a calculated figure. This helps them to determine how much they are going to pay out to the insured. Insurance companies covering those driving in Ontario will use the calculation formula. To arrive at the necessary figures.

Car Write Off Calculation

Calculation

The car write off calculation is a formula that deals with the cost of the repairs and the value of the vehicle. The insured once they know that their car is a write off wants to know how much they are going to be getting. They are going to have to replace the car, and they need to know how much cash they are going to have to be able to do this.

The first thing that gets done with the formula is to determine the actual cash value of the vehicle. Then the insurance company will add the cost of repairs plus the salvage value. This is then subtracted from the actual cash value of the vehicle. These calculations may determine that the value is a less than the repair costs. Then the car is going to be a write-off.

Car Write off Calculator Canada

Insurance companies do vary across Canada in regards to the cost of insurance premiums. Also, with the metrics that they use when it comes to the car write off calculator or formula. It will be pretty well standard across the country. It is because the insurance companies feel this is the most accurate way. For them to be able to determine which is better. Meaning is it better for them to pay for the repairs or to pay for the right off? Insurance companies are going to go with whatever going to cost them the least amount of money.

Car Insurance Right Off Value

investigation

The Insurance Company is going to have to determine what the value of the car is. To decide if the car is a write-off.

They have claims experts that will do the investigation. About the collision. Part of their job will be to assess the vehicle. There are certain factors that need to get determined to help come up with the value. The make and model and year of the car are going to be the first factor. Then they are going to determine the mileage on the vehicle as of the time of the accident. They are going to look to see if there have been any modifications to the car. They will also look at the general condition of the car aside from the damage that was created by the collision. This along with a few other metrics will help them determine the value. Also deducted from the payout will be the deductible.

The claims adjuster gathers all this information. Then they can use different types of resources. To help them reach the valuation price. They can use a valuation service. Or they can determine what the average sale price of the vehicle may be online. Or they can use a depreciation method. Meaning how much the car has the depreciated based on the retail sales price of the vehicle. It will be up to each insurance company to determine which method they want to use.

Type of Insurance Coverage

The insurance company also has to determine the insurance coverage. That the insured has in place. What portion of the insurance coverage gets paid out will depend. On the circumstances of the accident. The insured could be at fault for the accident. Then the claimant will come under their collision coverage. The insured may not be at fault. Then the claim comes under the direct compensation property damage section. Of the insurance coverage.

It will depend on how much one can receive. Aside from when the car write off calculator formula gets used. It will also depend on whether the individual had extra coverage. Some individuals have included a limited waiver. Or a depreciation clause in their coverage. This is going to make an adjustment to the payout for the car that has gone through the write off procedure.

Resources

https://www.thinkinsure.ca/insurance-help-centre/write-off-and-insurance-for-totaled-car.html
http://www.ibc.ca/yt/auto/crisis-management/repairs-and-replacement
https://www.drivesure.ca/insurance-company-values-car-total-loss/