# How much will the insurance pay on a totaled car

## How does an insurance company determine the value of a totaled car?

The ACV, or actual cash value of your car is the amount your car insurance provider will pay you after it’s stolen or totaled in an accident. Your car’s ACV is its pre-collision value as determined by your car insurance company, minus whatever deductible you are required to pay for your comp or collision coverage.

## How much does insurance pay on a totaled vehicle?

For instance, suppose you owe \$15,000 on your car loan, but your vehicle’s value has depreciated to \$13,000 when it’s totaled. If you have collision coverage, your insurer would reimburse you for the actual cash value of your car — in this case, \$13,000.

70% to 75%

## What happens when insurance says car is totaled?

If the insurance company totals your car, it will pay you the car’s actual cash value, minus your deductible, and your car is then sent to a salvage yard to be auctioned off to the highest bidder and usually chopped up for parts. The insurance company keeps whatever money it got for the car in salvage.

## How is actual cash value calculated?

Actual cash value is computed by subtracting depreciation from replacement cost while depreciation is figured by establishing an expected lifetime of an item and determining what percentage of that life remains. This percentage, multiplied by the replacement cost, provides the actual cash value.

## How is a total loss calculated?

The total loss threshold is calculated by dividing the vehicle’s repair cost by its actual cash value. It is expressed as a percentage. For example, suppose a vehicle will cost \$8,000 to repair and its ACV is \$10,000. The total loss threshold for the vehicle is 80 percent (8,000 / 10,000).

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## When a car is totaled who gets the car?

Vehicle is “salvage” when insurer declares it a total loss or salvage title is issued. Owner transfers vehicle to insurer due to damage or owner determines it has no marketable value. Cost to repair vehicle exceeds 75% of the fair market value.

## Can I still drive my totaled car?

You’ll need to tow the car to your state’s motor vehicle agency and pay a fee to have it inspected. If it passes, your car will have a new title, and you can now legally drive your car again. However, a new title doesn’t erase the car’s history as a salvage vehicle.3 мая 2019 г.

## How do I determine if my car is totaled?

Here’s How to Calculate the Value of a Totaled Car.

1. Confirm Your Car’s Value before the Accident. To find out the actual value of your car, you can check reputable pricing websites. …
2. Allow Car Rental Repayment. …
3. Calculate All the Necessary Fees. …
4. Calculate Your Car’s Actual Cash Value [ACV] On Reputable Websites.

## What’s my totaled car worth?

For most insurance companies, a total loss car has damage that equals approximately 70 to 75 percent of its resale value. A vehicle worth around \$10,000 is typically a total loss when the cost of repairs is \$7,000 to \$7,500.

## What to do when your car is totaled and you still owe money?

What Should You Do If You Still Owe on Your Car Loan After Your Car Is Totaled?

1. Be certain the ACV is correct. …
2. File a gap insurance claim. …
3. Pay your car loan payments.