The specific threshold for declaring a four-wheeler a total loss varies from insurance company to insurance company and can also depend on state laws. However, it is usually somewhere between 70% and 80% of the ACV.
So, for example, if a four-wheeler has an ACV of $10,000 and the estimated cost to repair it is $8,000, the insurance company will likely declare it a total loss and pay the owner $9,000 (minus any applicable deductible).
If an insurance company declares your four-wheeler a total loss, you will typically have the option of either accepting the insurance company's settlement offer or keeping your four-wheeler and receiving only the cost of repairs, minus your deductible.
Before you make a decision, it is important to carefully consider all of your options and weigh the pros and cons of each. Consult with your insurance company and, if necessary, a trusted mechanic to have a good understanding of the repair costs involved and the current value of your four-wheeler, ensuring you make the choice that best serves your interest.
