# Calculation of a Total Loss Settlement

1. Senior Member
Join Date
Oct 2016
Posts
2,885

## Re: Total Loss Settlement

They will almost certainly be considered a total loss.

2. Member
Join Date
Apr 2012
Posts
34

## Re: Total Loss Settlement

Quoting PayrolGuy
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?

3. Senior Member
Join Date
Mar 2013
Posts
16,876

## Re: Total Loss Settlement

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.

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.

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