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  1. #1
    Join Date
    Feb 2017
    Posts
    8

    Default Are There Different Total Loss Threshholds for First and Third Party Claims

    My question involves insurance law for the state of: New York

    An adjuster of the at-fault's carrier stated that although my insurance company deemed my vehicle a total loss because repairs exceed the 75% threshold, the at-fault carrier has not deemed it totaled because the threshold of a third party claim is 100% and their estimate has not reached such or is on the border.

    Aside from talking with the carriers, a repair shop provided me with an estimate and the mechanic stated that my damages were above the threshold and he could not get them below. I know insurers have their own policies but I thought they must comply with state laws as well.

    I want to know if what the adjuster stated is true because I cannot find such info anywhere not even in regulation 64. Are there different thresholds for first party and third party claims in the state of New York or does the 75% threshold apply to all claims and all independent out of pocket repairs?



    Thanks in advance for the response.

  2. #2
    Join Date
    Mar 2013
    Posts
    17,796

    Default Re: Are There Different Total Loss Thresholds for First and Third Party Claims

    What you have to understand is that the other driver's insurance company is not your insurance company and owes you nothing until a court of law says how much. Until then the company can offer you whatever it wants to offer you, in this case to pay for the repairs to your car without totaling it out.

    You are free to decline the offer and use your collision coverage if you want your car totaled at 75%.

    There is no statutory requirement that any insurance company use a particular formula.

    The common practice on first party claims is 75%.

    There is nothing you can do to compel the other driver's insurance company to total your car short of suing the other driver and proving in court that your car is a total loss at the cost of repairs but that seems silly since you pay insurance premiums to have your own insurance company take care of your loss right away without going to court.

    Try reminding the other driver's adjuster that you would be entitled to an additional amount for diminished value if you accepted the amount and repaired your car.

    The other alternative is to accept the repair cost and then sell what's left of your car to a junk yard. You'd end up pretty close to what your own company would do if your car was totaled.

  3. #3
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Are There Different Total Loss Thresholds for First and Third Party Claims

    New York does have a law stating that if the damage exceeds 75% of fmv it must be branded as a salvage vehicle if repaired. That goes a long way in arguing it is totaled if damages exceed 75% of fmv especially when you include any diminution of value that comes along with a salvage branded title.


    eta: that law applies to cars 8 years old and newer.

  4. #4
    Join Date
    Feb 2017
    Posts
    8

    Default Re: Are There Different Total Loss Thresholds for First and Third Party Claims

    Thank you Adjuster Jack and JK.

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