1. What is the Zebra Total Loss Calculator?

The Zebra Total Loss Calculator determines if a vehicle should be declared a total loss based on the industry standard formula: when repair costs exceed 80% of the vehicle's Actual Cash Value (ACV).

2. How Does the Calculator Work?

The calculator uses the standard total loss formula:

Where:

• Repair Cost — Estimated cost to repair the vehicle
• ACV — Actual Cash Value of the vehicle before the incident
• 80% — Industry standard threshold for declaring total loss

Explanation: This calculation helps insurance companies and adjusters determine whether it's more economical to repair a vehicle or declare it a total loss.

3. Importance of Total Loss Calculation

Details: Accurate total loss determination is crucial for insurance claims processing, ensuring fair settlements, and making informed decisions about vehicle repairs versus replacement.

4. Using the Calculator

Tips: Enter the estimated repair cost and the vehicle's actual cash value in the same currency. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is 80% used as the threshold?
A: The 80% threshold is an industry standard that accounts for both repair costs and potential hidden damages that may be discovered during repairs.

Q2: Does this calculation vary by state or country?
A: Yes, some jurisdictions have different thresholds (e.g., 70% or 100%). Always check local regulations for specific requirements.

Q3: What is included in repair costs?
A: Repair costs typically include parts, labor, paint, and materials needed to restore the vehicle to its pre-accident condition.

Q4: How is ACV determined?
A: ACV is typically calculated based on the vehicle's make, model, year, mileage, condition, and local market values before the incident occurred.

Q5: Are there exceptions to this rule?
A: Yes, some insurance companies may use different thresholds, and certain types of damage (like flood or frame damage) may automatically qualify as total loss regardless of repair costs.