If an insured keeps the car after a total loss, how is the salvage cost determined?

The determination of salvage cost in the case where an insured keeps the car after it has been deemed a total loss typically involves obtaining more than one quote to ensure accuracy and fairness. By averaging two salvage yard quotes, the process captures a broader perspective of the market value for the salvage vehicle, minimizing the impact of outlier quotes that might not reflect the true salvage value. This approach helps in establishing a reasonable estimate for potential salvage, as different yards may have varying assessments based on their own criteria, market demand, or other factors.

In this context, relying on just one quote could result in an inaccurate assessment that does not represent the overall salvage market. By taking an average of two salvage yard quotes, the insured, and the insurer can arrive at a more balanced and reliable figure that takes into account differing opinions from potentially knowledgeable sources in the salvage industry.