* Actual Cash Value (ACV): This is the most important factor. Insurance companies determine ACV based on the car's make, model, year, mileage, condition (before the accident), and market value at the time of the total loss. A 2005 Malibu with high mileage will have a significantly lower ACV than a low-mileage example in excellent condition. Websites like Kelley Blue Book (KBB) and Edmunds provide estimates of ACV, but these are just estimates; the insurance company will use its own valuation methods.
* Your insurance policy: Your policy's specifics will outline how the payout is calculated. Some policies offer "replacement cost" coverage (though this is rare for older vehicles), while most offer ACV. Any deductibles you have will also reduce the final amount.
* The insurance company: Different insurance companies use different valuation methods and may have slightly different opinions on the ACV of your vehicle.
How to find out:
The best way to know how much your insurance company will pay is to:
1. File a claim: Report the total loss to your insurance company immediately.
2. Get an appraisal: The insurance company will likely have its own appraiser assess the vehicle's damage and determine its ACV.
3. Review the settlement offer: Once the appraisal is complete, the insurance company will provide you with a settlement offer. If you disagree with their valuation, you have the right to negotiate or seek an independent appraisal.
With 140,000 miles, expect the payout to be relatively low, likely in the hundreds rather than thousands of dollars. Don't be surprised if the offer is less than you hoped for – the car's age and high mileage significantly impact its value.
