Skylarking
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AIUI, a statutory write off can (but doesn’t have to) be declared if certain structural parts are damaged. If structural parts are available for repair, and it’s economic to repair, then it won’t be a structural write off.... But a structural write off must be declared if fresh water immersion (dunked for a specific time) or any salt water immersion occurs, where such isn’t really based on cost of repair per se ... AIUI such statutory write off rules are defined by the road registration authorities.The salvage value has everything to do with it. If they can't sell the car to recover costs it can effect if the underwriter wants it to be written off or go for the repair.
A repairable (economic) write off is a much simple case and it occurs if repair costs are a % (80%) of the vehicle’s pre accident value... the wreck is also a much lower % (10%) of pre accident value....
From my experience with one claim in particular, I know that the estimated wreck value is directly proportional to the estimated market value, around 10% (or around $1k per every $10k of pre accident value).
Underwriters would have access much better estimates for vehicle and wreck values but normally any claim is a loss whichever way it’s cut and diced..
Obviously an insurance company will try to minimise their claim costs, usually by doing the cheapest repair as well as selling the wreck.... but a lot it is... Such is as obvious and as certain as the sun rising in the east and setting in the west.
But for an insurance company to directly make a profit on a claim isn't how the game should be played. For them to pay you out an amount and then sell the wreck for more than the payout is inherently immoral.
As I said, in my case, they paid me out and I kept the wreck as the assessor and claim manager came to agree that it was immoral for them to profit in such a way... back office processes can and do get overridden when it is prudent for all to do so (and that’s usually where the risk of them looking like heartless pricks overrides their greed).
But such logic and reason is never freely offered by an insurance company, only rules are freely offered. Unless you put in an effort to argue convincingly you may not get the best outcome. If you don’t even check their offers are reasonable, you may as well bend over and take what they give...
It’s can be a cruel world at times so best to rely on your own checks and don’t put up with their BS...