How does the insurance company value my vehicle?
Updated: 2 days ago
How does the insurance company decide how much my vehicle is worth? Mike Goodman here, agency principal at Goodman insurance solutions. I want to discuss an automobile insurance policy's actual cash value or ACV. So the way that actual cash value will work is that a few different factors go into determining the value.
The first and most crucial factor will often be the year model of the vehicle or how old it is at the time of loss. Also, what's going to go into this calculation is that the car's condition, a lot of times, the vehicle's state, is going to be paired right there together with the vehicle's mileage. And so, as expected, a car with only 10,000 miles on it versus that exact vehicle with 200,000 miles on it, those vehicles are going to be worth, they're going to have a value that will be different between the two. Because one, obviously, with a lot fewer smiles, most likely that condition is a lot better.
The actual cash value of your vehicle or vehicles is constantly moving, okay, and so if a car is brand new, you're most likely at the peak of that value versus a vehicle that gets you to know, just say, cars than one that may have 1015 20 years down the road, you're getting to the point in that vehicles live to where Atlue is going down. Now, at the same time, that vehicle, if it never gets driven, could be retaining more of that value as opposed to one that maybe has 400,000 miles on it.
A lot of times, we'll often retain we'll see vehicles that end up getting totaled out. And so basically, that means that there is a point where the repairs exceed a certain percentage of the actual cash value which deems it a total loss. I'll often see that from anywhere from 75 to 80, 85% of that value willnsidered a total loss. And again, that's where the actual cash value comes in and is essential, so if you've got further questions about this topic, particularly the true cash value in your insurance policy on your vehicle, please feel free to reach out to us anytime. Our phone number is 620-531-0261, or find us on most social media platforms. Thank you for your time, and have a great day.