How much will insurance pay for my totaled car?

If you’ve been in a car accident, your insurance company might have told you that your car is totaled, which might leave you with more questions than answers. Macon car accident lawyer Mike Rafi is ready to answer all questions you might have about your car accident while helping you with your car accident claim, including obtaining the full value of your totaled car.

To schedule your free consultation, contact Mike online or call (478) 216-1664.

What Has to Happen for a Car to Be Totaled?

The following is a brief explanation of how an insurance company adjuster will determine that your car has been totaled.  

The cost of fixing the car is higher than its value

If your insurance company determines that the actual cash value (ACV) of your car before the accident was $5,000 but the estimated repairs will cost around $7,000. Since the repair costs will be more than the ACV, the insurer will say the car is totaled, or is a total loss.

The car can’t be repaired safely or at all

It’s possible that your car is so damaged and there’s no chance that it will ever be drivable, no matter how hard a repair shop works. Even when a car could be fixed enough to be operated, that doesn’t mean it will ever be “road ready.” In either case, the insurer will consider the car totaled.

Here’s How Insurance Calculates Payout for Totaled Cars

If you own your car free and clear, your insurance company will send you a check for your car’s ACV. Here’s a quick look at how insurers calculate the ACV amount.

Actual Cash Value (ACV)

Insurance carriers use different methods for calculating a car’s ACV. Some of them use internal models, while others go to third-party vendors. In either scenario, they enter your car’s specific information into the database, and an ACV is generated. 

Factors that Affect a Car’s ACV

This is some of the information that gets entered into the software program to produce the ACV: 

• Make, model, and year
• Mileage
• Accident history
• Mechanical and/or cosmetic problems
• Wear and tear
• Depreciation
• Local demand for similar vehicles
• Sale prices of comparable vehicles in the area

Remember: ACV Doesn’t Equal the Cost of Purchasing a Replacement Vehicle of the Same Year, Make, and Model

It’s important that you don’t make certain assumptions  or expectations about the ACV of your car. You also need to remember that the ACV amount won’t be the same as the cost of buying a replacement car that’s the same make, model and year.  

Unfortunately, every car begins to depreciate the second it leaves the sales lot. So, it really doesn’t matter if you only had the car a year, a month, a week or even a few hours. Depreciation happens very fast. As a result, the ACV of your car will be a lot lower than what you originally paid.

Totaled Car? Call Mike.

Although you might be disappointed with the ACV value, you don’t simply have to accept it as fact if you feel the insurance company is wrong. You can hire Macon car accident lawyer Mike Rafi to submit a counter offer with information that will prove the insurance company’s ACV is incorrect.

Contact us online or call (478) 216-1664 to schedule your free consultation.