How does theft appraisal differ from standard auto damage appraisal?

• A. Theft appraisals focus on repair costs and standard auto damage.
• B. Theft appraisals focus on recoverable value, salvage potential, and insurance coverage specifics tied to stolen vehicles.
• C. Theft appraisals use standard market value for stolen vehicles.
• D. Theft appraisals ignore salvage potential.

Answer: (B)

The key idea is that theft appraisal measures the value and settlement under a theft scenario, not the cost to fix physical damage. When a car is stolen, the appraisal focuses on what the insurer can recover through salvage or resale and how the policy terms affect the payout. That includes recoverable value (the amount the vehicle or its parts can bring back on the market), salvage potential (whether the car, if recovered, becomes salvage and how that affects value and settlement), and the specifics of the insured’s coverage (limits, deductibles, endorsements, lienholder requirements, and any theft-related exclusions).

In contrast, a standard auto damage appraisal centers on repairing or replacing damaged parts to restore the vehicle to its pre-accident condition, or determining total loss based on repair vs. replacement costs, without weighing salvage value or theft-specific coverage. Salvage is a critical factor in theft scenarios because it can reduce the final payout if the vehicle is recovered as salvage, and policy terms can further shape the settlement.