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Auto Insurance Claims/Determining Auto Salvage Value

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Expert: - 8/3/2011


Question
Is there a percentage that insurance companies use to determine salvage value on a car? I've got a vehicle that KBB determined the "good" value at $1750, the trade in value at $925, Retail value at $3300. The repair estimate is $2460. (front end damage, vehicle is driveable)

Answer
Hi Michael,

Since this is obviously an older vehicle the salvage value will be very low. Usually as a rule of thumb you can assume about 10% of the retail value. However in this case you should not use KBB retail value as it is likely inflated. Check www.edmunds.com and do their True Market Value assessment. Then use 10% of what they show as a retail value as a guide.

I hope this helps
Richard Hixenbaugh

Auto Insurance Claims

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Richard Hixenbaugh

Expertise

Auto insurance claims procedure, auto coverage, liability issues, auto damage questions, how to deal with the insurance company, loss of use and diminished value.

Experience

I have been involved in the insurance industry for over 25 years. I have experience in underwriting, sales, claims adjusting, auto damage estimating, auto value appraising and diminished value appraising. I have testified as an expert witness over 35 times.

Organizations
Society of Certified Auto Appraisers

Education/Credentials
Completed all required courses for the Florida Property-Casualty agents license and the Florida claims adjusters license. I have attended various courses on auto damage estmating, vehicle appraising and am ASE certified in collision damage analysis.

Past/Present Clients
My company has done work for consumers nationwide.

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