A car is considered a total loss in Montana when the vehicle’s actual cash value is equal to or less than the cost of repairs plus the salvage value. Actual cash value refers to how much the car was worth immediately before the damage, while the salvage value is the car’s worth in its damaged state.
Montana Total Loss Law Example
- Pre-crash value: $10,000
- Cost of repairs: $9000
- Salvage value: $2000
- Pre-crash value – cost of repairs – salvage value = -$1,000
- Result: Car is totaled
