It comes down to insurance and salvage titles mostly. In PA, the vehicle I have experience with was valued by insurance at $11.5k, minus a $500 deductible, so $11k. That value determination was made by the insurance company by market factors, which is why market value comes into play. Looking around at comparable used vehicles of same make, model, year, mileage, I found that to be fair price.
The cost to repair from multiple shops within transportable distance (important consideration as I'm sure someone somewhere could have done it for less) was $16k. To get it to an ugly but functional state was about $10k, which would have to be paid out of pocket.
Even if repaired to "roadworthy" condition, it would need to be reinspected and if deemed to be roadworthy would hold a salvage title, meaning insurance would go through the roof, my liability coverage would be dropped, and the car could not be resold. If not deemed roadworthy, more cost.
Needless to say, I considered the car totaled and used the $11k for a down payment towards another Honda.
The cost to repair from multiple shops within transportable distance (important consideration as I'm sure someone somewhere could have done it for less) was $16k. To get it to an ugly but functional state was about $10k, which would have to be paid out of pocket.
Even if repaired to "roadworthy" condition, it would need to be reinspected and if deemed to be roadworthy would hold a salvage title, meaning insurance would go through the roof, my liability coverage would be dropped, and the car could not be resold. If not deemed roadworthy, more cost.
Needless to say, I considered the car totaled and used the $11k for a down payment towards another Honda.