How is the value of a totaled car figured?

When an insurance company declares a vehicle a total loss, it means the cost to repair the car would exceed the car's value. The company then calculates the actual cash value (ACV) of the car, which is what it would cost to replace the car with one of similar age, condition and mileage.

Several factors go into determining the ACV of a totaled car, including:

- The car's make, model and year

- The car's mileage

- The car's condition

- The cost to repair the car

- The local market value of similar cars

- Depreciation: Insurance companies will factor depreciation to determine how much the vehicle has depreciated since it was purchased. This is calculated based on the vehicle's age, mileage, and condition.

- Salvage Value: The insurance company may also subtract the salvage value of the car from the ACV. This is the amount the company can expect to get by selling the car for parts.

The ACV is not always the same as the amount the policyholder paid for the car. If the car has depreciated significantly, the ACV may be less than what the policyholder paid for it.

Policyholders who are not satisfied with the insurance company's ACV can file a complaint with their state's insurance department.