My car was in a serious accident, and is irrepairable. The insurance company is coming down in a day or two to check out the car. I was no at fault, police are still looking for the guy at fault. However, my car is done.
Will my insurance company give me the value of replacing a car like that, like if I were to buy one again, or would they give me the "book" value?
2007-10-26 23:51:21 · 0 answers · asked by Visine 1 in Cars & Transportation ➔ Insurance & Registration
I have full insurance if that helps. And thank God accident forgiveness.....first accident...
2007-10-27 00:00:42 · update #1
You're gonna get the book value, less your deductible, plus any customization you might have done.
Good luck.
2007-10-26 23:58:42 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Your insurance company will pay the Actual Cash Value (ACV) of the damaged vehicle - not the Replacement Cost Value (RCV).
The ACV of your vehicle is what you could reasonably have sold the car for given it's age, condition, mileage just prior to the accident.
Insurance companies do NOT use Kelly Blue Book, Red Book, or Black Book value. Many have a market survey program that they use. If they use a book - they will use the NADA (National Automobile Dealers Assoc).
Please keep in mind- most vehicles are not full retail value vehicles. Take an honest look at your vehicle - does it smell strongly of cigarette smoke, is the interior clean/free of defects or damage, how often did you have the engine cleaned, is the paint in good condition - free of scratches/fading/rust, is there unrelated body damage, are the tires in good shape?
Also - if the vehicle has high mileage - it does not matter if they are "highway miles" or not. Any time the car is driven - be it on the highway or elsewhere - the parts are in motion and wear out.
If you owe more then the car is worth - you are "upside down". The insurance company will stay pay the ACV of the vehicle - not the amount of your loan. If you have been a good customer, the finance company may be willing to let you roll the overage into the new note or let you bring in the title to another vehicle you own (substitution of collateral).
2007-10-27 01:48:22 · answer #2 · answered by Boots 7 · 2⤊ 1⤋
My wife was recently in a accident, (10-6-07) Her vehicle was totaled, unfortunately she was at fault. I just settled on the vehicle last week. First, you must have collision coverage on your policy, thats if the accident is your fault, if you are not at fault, the other party's insurance will determine if your vehicle is repairable or totaled, if they determine it totaled, they will figure the value usually using the NADA book, and will figure up what the ACV ( Actual Cash Value), of the vehicle would have been worth prior to the accident. (scratches, damaged or faded paint, condition of interior, age of vehicle and mileage. ) those factors will be adjusted into the book value minus your deductable, and then they will issue a check for that amount and send it to you. Now if you are still making payments on your vehicle, the insurance will pay off the vehicle, if there is anything left after payoff, you will get the rest, If more is owed on the vehicle than it is worth, they will pay the finance company only what the vehicle is worth (ACV) and you may be left with any remaining balance on the note, You said that you have accident forgiveness on your insurance............that does not apply if you are not at fault. Good luck to you.
2007-10-27 01:35:19 · answer #3 · answered by bobby 6 · 1⤊ 0⤋
You vehicle will be totaled if the cost to repair it is close to the fair market value of the car. They will take the fair market value and adjust it for the condition of the car and come up with a number. If you had a recent new paint job, it will adjust up. If your tires are bald, it will adjust down, that type of thing.
If they manage to find the person who did this, and he has insurance it will be paid for by his insurance company. If they find him and he has no insurance, your uninsured motorist will kick in. If they don't find, your insurance will pay since you have full coverage, but it will be less whatever deductible amount you chose when you started your policy.
Once they settle with you, the car then belongs to the insurance company and they will tow it to the nearest storage yard they have and attempt to regain some of their costs by offering parts off it until nothing is left, and then they will recycle it as scrap metal. If you want (for whatever reason) to keep the car you can buy it back from them for salvage value.
And no, you don't get replacement value. If you owe money on it, you don't get what you still owe. You get market value.
In the event you do still owe on the car, the check will go to the owner, the bank, and if it doesn't cover the amount then due, you will be responsible for any excess (and you will get a refund if it's more than what is owed of course.) The exception to the rule is if you have GAP insurance. In that case GAP will kick in and pay any remaining amount. Good to have when you are "upside down" and owe more than the vehicle is worth on paper.
2007-10-27 03:44:28 · answer #4 · answered by oklatom 7 · 0⤊ 1⤋
Depending on what kind of policy u carry. If not fully insured, then book value most probably....Good luck.
2007-10-27 00:00:09 · answer #5 · answered by Gambit-Xeneise 5 · 0⤊ 0⤋
It should be replacement value. Make sure you have copies of all police documents and your policy to remind them.
2007-10-27 01:01:39 · answer #6 · answered by CHARLES R 6 · 0⤊ 0⤋