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During an Accident, If My Airbags Deploy Does It Mean My Car is Totaled?
June 11, 2021
Your Car's Airbags are Expensive, But...
The cost to replace an airbag is between $500 and $6,000[1] [2]. The fact that an airbag is deployed however, does not determine if a car is totaled.
Insurance companies defer to state and local law when determining whether a vehicle can be declared totaled. Total losses and eligibility for a Salvage Title are generally based on one of two types of calculations:
- Total Loss Threshold (TLT)
- TLT Formula: Cost of Repairs/Actual Cash Value
- Total Loss Formula (TLF)
- TLF Formula: Cost of Repair = Salvage Value > Actual Cash Value
ClaimsJournal .com and CarInsurance .com lists US States and their statutes for determining Total Loss [3][4][5]
Twenty-Two States utilize a Total Loss Formula. The balance use a Total Loss Threshold percentage from 50% to 100%. When damages approach or exceed those formulas cars are totaled
In New York State, a vehicle eight model years old or newer with damage at or exceeding 75% of it’s value must be branded with a “salvage title”. [6]
Deployment of an airbag certainly increases the likelihood of a total loss on a lower valued vehicle, but it is not the determining factor. The amount of damages and how that compares to the Actual Cash Value of the car, are the two most important considerations in determining whether or not a car is totaled.
Footnotes:
[1] Should Car Owners Replace Airbags In Older Cars?
[2] Airbags Inflating Repair Costs, Total Losses
[3] When is A Vehicle Considered a Total Loss?
[4] Total-loss thresholds by state | CarInsurance.com
[5] When is A Vehicle Considered a Total Loss?
This article may have been originally published at Quora.com.
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“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
