How much do auto insurance companies pay for a totaled vehicle?

bundysmom

Unless your insurance policy states otherwise, you are paid the Actual Cash Value (ACV) for a totaled car. This number is NOT obtained through NADA, KBB, or any other buyers/sellers guide. The ACV is determined by collecting sales data (from private party and dealership sales) in your area of vehicles of the same/similar year/make/model/mileage/condition/option... as your own. Any recent work done to the vehicle (new tires, regular maintenance) may add value to the ACV; similarly, if your vehicle as high mileage for its age or is poor condition for its age, deductions are taken for this as well.

BobSpain

Hi,

they SHOULD pay you the 'market value' of your vehicle. However insurance companies being what they are they often try to 'diddle' you out of much of this figure. They will say that certain parts were 'worn' or damaged, etc., before the accident and will offer you a lower figure.

Insurance companies do not get rich by paying every clain out without trying to screw some back from you. They get rich by having lots of 'small print' (which is NEVER favourable to you, the insured) and by paying out as little as they can get away with.

Their version of a 'fair market value' is likely to be quite different from yours. If you are not satisfied with what they offer, get a 'reading' from 'Kelly's' (or whatever trade book is used where you live) and argue the toss. A claim supported by published figures has more chance of being successful, so don't give up. Stand your ground and fight for the maximum.

Cheers and good luck,

BobSpain

Scott H

They pay street value. It will be less than you think it's worth.

cailgirl2k

I got my 98 from eBay for $4200 in great condition last year so dont pay over that.

Tina W

They pay you the value of the car... usually they go by something like kelly blue book value. Sometimes they will try to screw you though, so if they offer a price you do not agree with, you can tell them that you will not accept that price, the vehicle is worth more than that.. good luck!

Generally they pay the actual cash value based upon recognized authorities, such as NADA, for the "retail" value of your car. They take into account salvage value, the worth of the wreck. If you give it to them, they will pay you full retail value. If you keep the wreck, they will pay you full value, less salvage. Now this is NOT an exact science. If you think what they are paying is too little, you need to negotiate based upon mileage, add ons, condition of your vehicle, etc.

The main problem with a "totalled" vehicle, unless you have true replacement cost coverage in your policy (which most people do NOT), you are only going to get depreciated value for your car.........it may not be enough for you to buy a similar model NEW car or it may NOT be enough to pay off your loan against the car.

jeannieunderwood2003

Salvage Value

crazy woman

Blue Book price and believe me they will pick your car apart to keep from paying you what its worth.
Been there done that,,,,,, a poor old man 82 years old pulled out in front of me and my car was totaled. It was paid for. His insurance company argued with me about the leather seats saying that they were not all leather and didn't want to pay the difference for them. we all know that the underneath part is usually vinyl. Then kept saying that they didn't want this accident to cost me anything. yeah right like you are gonna be able to replace it without having to make payments on another car. Fight back and don't give up.

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