How Do Insurance Companies Determine The Value of a Totaled Car?

Posted on Sep 12, 2016
When you are in an accident that does sufficient damage to your cable car, the indemnity company considers the car a total loss. That does not inevitably mean you get the full retail prize of your vehicle from the insurance company. rather, you receive an sum, determined by the policy company. What gets confusing for many people is that indemnity companies may not use the same guidelines to determine the rate of your vehicle as person purchasing it in pre-accident condition .
The criteria listed below are just a few factors used by insurance companies to determine the value of your totaled car.

Vehicle Mileage

precisely as mileage weighs heavy in determining the blasphemous book value of practice cars being sold to the populace ( or traded in for newer cars ), it can besides be used to help determine the appropriate value of one that has been totaled in an accident. The fewer miles your vehicle has, the higher the value that is assigned to your car based on the mileage .

Condition of Vehicle Prior to Accident

The truth is that if this is not your foremost accident or your fomite is not in about mint condition, it will be determined to have less value than those that have flawless finishes unmarred by shopping cart dings, signs of rust, or excessively much time spent in the summer sun. These cosmetic injuries can add up to a big hurt for your wallet if your car is totaled. It is always well to have repairs made right away so that your car looks american samoa good as raw at all times.

Vehicle Option Packages

These are factory options that are included in the vehicle when you make the buy. Different brands offer lavishness touches, upgrades, and packages to make your car more comfortable, epicurean, appealing, or even kid-friendly. You may even have a few guard upgrades on your vehicle that will add to the total measure of the vehicle and increase the policy company ’ south determination of value for your car.


unfortunately just driving a modern vehicle off the draw for the first time will cost you approximately 20 percentage of the sales price in depreciation. Fewer things lose value faster or more dramatically than cars. The older your car is, the less worth it has in the eyes of insurance companies .
If you own a classic fomite or one that is considered a hot gat that isn ’ thyroxine used for casual use, you may be able to obtain a policy for classic cars that involves an ‘ agreed upon ’ value in the subject of totaled cars .

Type of Insurance Coverage

When it comes to cars your indemnity company may allow you to choose from an actual cash value policy or a successor cost policy. The actual cash value policy is well cheaper. however, when you are in an accident in which your vehicle is determined to be a full loss, this policy subtracts depreciation, wear and rip, and other incidentals from the measure they are volition to offer. If you have a refilling value policy, it will pay the measure of money it would cost you to purchase another vehicle in a condition alike to yours ( anterior to the accident ). In many cases this will be sufficient to pay off the remaining debt on your fomite but you pay much more up movement for this type of insurance protection .

If you still have questions about determining the value of totaled vehicles, make sure to call Otterstedt Insurance Agency at 201-227-1800 for all your auto insurance needs. We can help you find the right policy, for the right price.

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