Calculation of a Total Loss Settlement

[PayrolGuy]

They will almost certainly be considered a total loss.

[DDSA]

They will almost certainly be considered a total loss.

Right, but why if the cost to repair the vehicle is less than the Market Value?

[adjusterjack]

Arizona uses the Total Loss Formula:

Fair Market Value less Salvage Value. If the result is less than the repair cost (before deductible) the car is totaled.

Your repair cost is $4493.79.

You'll have to get the salvage value from your adjuster but assuming 10%, your FMV is $4922.41 - 492.24 salvage = $4430.17.

$4430.17 is less than the repair cost of $4493.79 so the car is a total loss.

You have the option of taking the $4430.17 - $500 deductible = $3930.17, keeping the car and getting a salvage title, then seeing if you can get the car repaired for $3930.17.

If the salvage value is more than 10% you'd get even less.

Do you have any good reason to keep the car and get it repaired? It's rarely a good idea. You'd have to have used parts installed and minimum quality paint.