Is there such a thing as “too much damage”?

Short answer? Yes.

If your vehicle was exposed during a catastrophic hail storm and it is determined to be too damaged, or beyond repair, your insurance agent could tell you it is a “total loss” claim.

How does the insurance company determine if the hail damage is a “total loss”?

There is a certain set of criteria that an insurance company will consider before calling auto hail damage “totaled.”

  1. The cost of repairs exceeds the vehicle’s ACV (actual cash value.) Actual Cash Value (ACV) is a method of valuing insured property. (ACV = replacement cost – depreciation)
  2. The state regulation regarding the severity of damage. For example, a vehicle with damage totaling 60% of its value is considered totaled in Oklahoma but would be considered completely repairable in Colorado.
StateThresholdStateThresholdStateThreshold
Alabama75%Louisiana75%OhioTLF
AlaskaTLFMaineTLFOklahoma60%
ArizonaTLFMaryland75%Oregon80%
Arkansas70%MassachusettsTLFPennsylvaniaTLF
CaliforniaTLFMichigan75%Rhode IslandTLF
Colorado100%Minnesota70%South Carolina75%
ConnecticutTLFMississippi70%South DakotaTLF
DelawareTLFMissouri80%Tennessee75%
Florida80%MontanaTLFTexas100%
GeorgiaTLFNebraska75%UtahTLF
HawaiiTLFNevada65%VermontTLF
IdahoTLFNew Hampshire75%Virginia75%
IllinoisTLFNew JerseyTLFWashingtonTLF
Indiana70%New MexicoTLFWest Virginia75%
Iowa50%New York75%Wisconsin70%
Kansas75%North Carolina75%Wyoming75%
Kentucky75%North Dakota75%

3. Not surprisingly, your insurance company is going to take the cheapest option.

 

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