According to CCC Information Services, a company that tracks auto insurance claims, 12% to 14% of all automobiles involved in an accident will be considered a totaled loss. This statistic has been tracking upward since 2002. It has been backed up by insurance companies in St. Louis
If you are involved in a car accident, there is a one in 7 chance that your car will be considered a total loss.
After your vehicle has been deemed a total loss, many companies are using an outside vendor called CCC Information Services. The CCC stands for Certified Collateral Corporation. They are tasked with studying the used auto market in order to determine fair and reasonable compensation for a totaled vehicle. The CCC works for insurance companies. Not for you.
States Requirements On Total Loss Cause Repair Costs Are Different
Each state requires insurance companies to declare a car totaled once the repair costs reach a certain level. In Missouri, it is 80% and Illinois uses the Total Loss Formula or TLF. TLF = cost of repairs scrap value and that value must equal the pre-accident value of the car. Insurance companies can elect to use a lower percentage.
CCC Information Services Group represents over 85% of the market and contracts with over 350 insurance companies.
It was surprising to find that there are now several independent auto-evaluation services that will assist you in determining a fair valuation of your vehicle. This is a relatively new concept. Care should be taken when choosing a vendor.