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Auto Insurance Claims/Total Loss question

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Expert: Charlie Barone - 2/3/2010


Question
Could you explain what a Constructive total loss is, and what is the difference of a structural total loss.

Answer
Jerry,

A very good question. A constructive total loss is when the cost to repair your car is added to the additional costs of the loss, such as rental charges, diminished value charges, loss of use, etc. If these charges exceed or approach the value of your car (it's replacement cost plus tax), then it is considered a constructive total loss.

A structural total loss is when the repairs will cost more than the value of the vehicle, or the structural and/or frame damage is unrepairable, such as when the cowl and firewall are crushed. Anything can be repaired given the right equipment, talent and money, but insurance claims are a money-based deal and the path of lesser cost will always be taken.

Charlie

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Charlie Barone

Expertise

For questions involving auto damage claims, collision repair, forensics, industry practices, we can help. We specialize in claims for loss of resale value (Diminished Value).

Experience

I have 30 years experience in the collision repair and body reconstruction field, both hands-on and from behind the desk. I hold a Master Certification from ASE in the Body and Paint category, as well as their certification in Estimating. I have authored over 120 feature and training articles for the largest trade journal devoted to the collision repair industry, and have given expert testimony in court dozens of times. Licensed physical damage appraiser in Pennsylvania and reciprocal states.

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