# Quick Answer: How Much Damage Is Needed To Total A Boat?

## How is a total loss calculated?

The total loss threshold is calculated by dividing the vehicle’s repair cost by its actual cash value.

It is expressed as a percentage.

For example, suppose a vehicle will cost \$8,000 to repair and its ACV is \$10,000.

The total loss threshold for the vehicle is 80 percent (8,000 / 10,000)..

## How much damage does it take to total a vehicle?

Generally, the cutoff is somewhere in the 70% to 75% range. In this case, the car is considered to be a total loss except for the value of scrap metal or potentially salvageable parts. An appraiser can check the damage done to a wrecked vehicle to determine the totaled car value.

## What happens when insurance totals your boat?

In the event of a total loss, your boat insurance policy may pay you based on the Agreed Value, Actual Cash Value or the Replacement Cost Value. In explaining how these three policy forms are different, I will use a three-year-old boat, insured for \$40,000 which was destroyed by fire.

## How do insurance companies determine if a boat is totaled?

It occurs when the vessel is recovered but heavily damaged to the point where the cost to repair it would exceed the amount that the vessel is insured for. There’s actually a court ruling that if the cost to repair is more than half the amount insured it will be a constructive total loss.