Once you met with an accident, the insurance company looks at vehicle and determines whether to declare write off or repair and get on road. The insurer will want to look at a vehicle by them or heir a private mechanic team to inspect the vehicle. The mechanic team sends the estimate to the insurance company about how much cost is required to get vehicle on road. As the insurance company write off about million cars annually, based on the estimate, the insurance company decide whether the vehicle should be write off or to get on road.

But what actually write off is? When a vehicle met with an accident and damaged totally and it is too costly to fix the problem and return on road is called write off. Usually vehicle is written off when its repair cost exceeds the value of the vehicle.

However, when there is extensive damage to car, the insurance company wants to inspect the car by themselves to decide the write off. This is because to avoid the conflict between the mechanic team and insurance company. Generally the mechanic team vests their interest in fix the problem and gets them on road which is waste of amount to insurance company. One common factor, upon which the insurer decides to write off, is if the cost of repairs exceeds the value of the car. This is very complex calculation than it appears because this calculation needs to take into account several factors before determining.

The state law and the insurance company determine that total loss. If they believe that the repair cost reaches the 80% of the value. When the vehicle is being estimated for write off, the adjuster will take into account the scrap value or salvage value. The car insurance companies will take into account the scrap value while estimating the write off. Let say, the settlement value in the state is $2700 and the scrap value is $800 then the $1900 must be compared against the repair cost.

But the way the scrap value is determined? When the car is calculated on the scrap for the individual search the vehicle state, such as additional equipment they have, how it is clean, so your mileage before the final evaluation of the vehicle.

Type of the policy you have for the car which is damaged determines whether the vehicle needs to be write off or not. Storage charges: normally, the car which met with an accident has to be stored or park in an area. Many garages normally charge high rates to written off vehicles. In order to avoid such cost, it always advisable to declare write off and dispose them at scrap yard. Hire charges: normally, if you policy covers rental car, then the cost to rent can effect the decision because they prove to be higher cost to the insurer.