A car will be counted in Michigan when the damage exceeds 75% of its actual cash value before the damage. I) Deliver a certificate of title duly assigned to the Secretary of State. I
i) If the estimated cost of the repair, including parts and labor, is equal to or greater than 75% but less than 91% of the actual cash value of the vehicle before the damage, request a certificate of title to salvage and, if the estimated cost of the repair, including parts and labor, is equal to or greater than 91% of the actual cash value of the vehicle before the damage, request a certificate of title for scrapping. The insurance company will not sell the vehicle without first receiving a scrap or scrap certificate of ownership, which will be assigned to the purchaser.
An insurance company may assign a title salvage or disposal certificate only to an auto recycler, a dealer of used or second-hand vehicle parts, a foreign salvage vehicle dealer, or a scrap vehicle processor.
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i) On behalf of the owner, ask the Secretary of State for a certificate of title for salvage or scrapping in the name of the owner. The owner will not sell or dispose of the vehicle without first receiving a scrap or scrap certificate of ownership, which will be assigned to the purchaser. An insurance company may assign a certificate of ownership of salvage or scrap metal only to an auto recycler, a dealer of used or second-hand vehicle parts, a foreign salvage vehicle dealer, or a scrap vehicle processor.
Insurance companies consider a damaged car to be a total loss when the estimated cost of the repair is greater than the actual value of the vehicle. Even when it's visibly irreparable, you should tow the car to the body shop designated by the insurance company.
