How does your insurer determine Actual Cash Value of your car?
Problem: Britney's new car has been totaled by the insurance company. She is not sure if they have done the right thing and would like to have options to repair her car. She wants to know where she can get information on how insurance companies determine the Actual cash Value of the car and if she can still have her car back.
Solution: Insurance companies usually total a car for two reasons:
1. The cost of repairing the car is much more than the Actual Cash Value of the car.
2. When the car is beyond repair after it has met an accident
Once a car is totaled, the insurance company will keep the car and pay you only the actual cash value (ACV). Now insurance companies have their way of determining the ACV of a car. The most common way to determine the value would be to use the Kelly Blue Book, NADA and the Black Book. Another thing they would consider is the 'fair market value' which is used along with the book value. This may be more or less than the book value and insurance companies use this to their advantage.
Your insurance company would have to calculate the repairing costs of the vehicle in order to determine it a total loss. They would send your car to a body shop where they will assess the cost to get it repaired. Whether your insurance company is being fair or not, you can do a little research yourself. If you are not convinced about your insurer being fair, you can do some research on your own. You may seek help from a body shop and ask them about the repairing cost of your car. Since yours is a brand new car, I believe the cost to repair it would be huge. I know, you must be feeling bad to let the car go, but if you think you have the money to get it repaired and would like to keep the car, then you must immediately inform your insurer about it.
You can buy back your car from the insurer. However, even then your insurance company will need to pay you the actual cash value of your car minus the deductibles. You can then get your car repaired. About where you can get information on how your insurance company would determine the ACV of your car, you may ask your question to an insurance community. There are several such communities that will help you with your insurance query. Look them up in the net and put your question there t be answered by experts.
Solution: Insurance companies usually total a car for two reasons:
1. The cost of repairing the car is much more than the Actual Cash Value of the car.
2. When the car is beyond repair after it has met an accident
Once a car is totaled, the insurance company will keep the car and pay you only the actual cash value (ACV). Now insurance companies have their way of determining the ACV of a car. The most common way to determine the value would be to use the Kelly Blue Book, NADA and the Black Book. Another thing they would consider is the 'fair market value' which is used along with the book value. This may be more or less than the book value and insurance companies use this to their advantage.
Your insurance company would have to calculate the repairing costs of the vehicle in order to determine it a total loss. They would send your car to a body shop where they will assess the cost to get it repaired. Whether your insurance company is being fair or not, you can do a little research yourself. If you are not convinced about your insurer being fair, you can do some research on your own. You may seek help from a body shop and ask them about the repairing cost of your car. Since yours is a brand new car, I believe the cost to repair it would be huge. I know, you must be feeling bad to let the car go, but if you think you have the money to get it repaired and would like to keep the car, then you must immediately inform your insurer about it.
You can buy back your car from the insurer. However, even then your insurance company will need to pay you the actual cash value of your car minus the deductibles. You can then get your car repaired. About where you can get information on how your insurance company would determine the ACV of your car, you may ask your question to an insurance community. There are several such communities that will help you with your insurance query. Look them up in the net and put your question there t be answered by experts.
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