So why the write off nonsense. Just send it to a repair shop directly and if it cannot be repaired, then initiate a write off.
Sounds like extra steps for the profit of middle men
Sounds like extra steps for the profit of middle men
Write-off is about insurance policies, and whether it is cheaper to repair damage to the standard committed to by the insurer within the parameters (e. g., new original manufacturer parts) in the insurance contact or to pay the amount the insurer is committed to pay in the alternative.
It is only tangentially related to whether it is econonically viable to restore the vehicle to usable condition.
A newish car, a minor crash, bumper, hood, a front light or two, couple of airbags... at ~1500eur per light, 2-3k for original hood, 2-3k for airbags, body work, and low eurotax estimate of the price of the car, your repair cost is easily above 70% of the "car value".
A few trips to the dump, some aftermarket parts and someone to do the work for cheap, and you've got a drivable car.
The people who buy salvage titled cars are usually happy to drive a car that doesn’t work quite right if they get a killer deal for it.
The other thing is that generally, a person is free to buy their car back from the insurance company instead of taking the cash from the totaling. That is when they will discover they can't just send it to a shop and get it repaired for any reasonable amount, plus the salvage title means no one else wants it.
You send it for an estimate. If that estimate is too high, insurance gives you a check then sells the car as a salvage.
- what it would cost them to repair it (including the risk of having to get additional work done, etc)
- what the car was worth minus what they can sell it for at auction.
If the values get close, they total the car. Then someone else buys it: maybe for parts, or maybe to repair it to a standard that the original owner wouldn't have been happy with.
Well to get the owner of the written-off car installed into a new vehicle of course! With a whole new loan and likely a higher insurance premium esp. if they "upgraded" in the process.