# Calculation of a Total Loss Settlement

1. Senior Member
Join Date
Oct 2016
Posts
3,549

## 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
17,479

## 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.

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.

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