Total loss: replacement value, residual value, and what you get

If the repair costs significantly exceed the value of the car, this is called an economic total loss. Then you generally get the replacement value minus the residual value. Within certain limits, however, you can insist on a repair if the vehicle is important to you.

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Your chances of getting your money back

With an economic total loss, the insurer reimburses the replacement value (what an equivalent vehicle costs) minus the residual value (what the wreck still fetches).

If the repair costs are up to 30 % above the replacement value (the 130-percent rule), you can, under certain conditions, have the car properly repaired and keep driving it, instead of receiving only the value minus the residual value.

What you should do now

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1. Take the values from the report
Have the replacement value, residual value, and repair costs determined by your own appraiser.
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2. Check the residual-value offer
Do not accept a high 'residual-value offer' from the insurer's online market unchecked, the regional market is decisive.
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3. Check repair (130 %)
If you want to keep the car, check whether the proper repair is within the 130-percent limit and you continue to use it.
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4. Enforce the payout
Demand settlement based on the report's values. In a dispute over residual value or ratio, legal support helps.

How to spot the scam

The insurer presents an inflated residual-value offer from a nationwide residual-value exchange.
The replacement value is set too low.
The 130-percent repair is refused across the board.

Frequently asked questions

What is the difference between replacement value and residual value?

The replacement value is the amount for an equivalent replacement vehicle. The residual value is what your damaged car is still worth in its current condition. With a total loss you generally get the difference.

What is the 130-percent rule?

If the proper repair costs are at most 30 % above the replacement value, you can, under certain conditions, have the vehicle repaired and continue using it instead of receiving only the total-loss settlement. You must then keep driving the vehicle for a while.

Do I have to accept the insurer's residual-value offer?

Not unchecked. Generally decisive is the residual value on your regional market, as determined by your appraiser, not an inflated offer from a nationwide online residual-value exchange.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.