On Fri, 28 May 2004 20:58:24 GMT, "G.R. Patterson III"
wrote:



Michael Horowitz wrote:

You insure your a/c . You have an accident and the insurance company
says that if the estimate is between 60-70% of the insured value, they
declare it totaled.
Why is the cut-off point 30-40% lower than the insured value?

In addition to the salvage value Ben mentions, they typically assume that additional
problems will be found during the repair process, and that the repairs will
consequently cost more than the original estimate.

George Patterson
None of us is as dumb as all of us.

There are also "overhead" costs associated with recovering the
aircraft (insurance usually picks up the bill), storage fees until
disposition is determined and until the NTSB does their thing, etc.

So when you prang your bird (and you're insured), money
starts getting paid (again, usually by the insurance company)
from the get-go.

Bela P. Havasreti