does a collision repair shop or insurance company benefit from saying a car is a total loss and goes to salvage

Asked by Feb 19, 2012 at 09:14 AM about the 2004 Mercury Mountaineer 4 Dr STD AWD SUV

Question type: Maintenance & Repair

Vehicles are determined to be a total loss very quickly, the salvage company knew my
suv was totaled before I did and wanted to pick it up pushing to have the release form
signed. I was still talking to the insurance company trying to have it repaired.

1 Answer

1,355

If you consider that a car in parts is worth more that the car by itself then yes, as repair shop will benefit more from a total loss then repairing it. Also most of the time a shop will repair a car at minimum cost, using cheap parts so the cars only looks good, but could be a shed under the paint and then sell it with a profit. You as a customer will want your car fixed as best as possible and you will not mind waiting a bit longer for a better result. Also a repair shop will gain no or little profit from repairing the car for you.

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