Total Loss Series: Cost of Repair vs. Actual Cost Value

Total Loss: Chapter 3 of 6

Determining Cost of Repair

A mechanic or adjuster will be sent by your insurer to inspect the vehicle from the outside-in, and they will write up an estimate of how much it will cost to rebuild your car to the condition it was prior to the accident. The estimate will be given to your claims agent.

Determining ACV

The ACV is determined by comparing your vehicle to similar vehicles on the market. Here are several methods your insurance provider may use:

• Software from an independent provider that gauges the car’s value
• Gathering information from their network ofauto dealers
• Private party sales or recent sales history documentation

Remember that your idea of your car’s value may differ greatly from your insurance company’s estimate of its worth. You have the right to negotiate if you believe you are getting an unfair deal.

For example, you may choose a different mechanic to provide an estimate if you are really determined to keep the car. The difference may be low enough that your insurance company will pay out to repair.

Continue to Chapter 4: Unfair Aftermarket Parts Valuation >>>