Total Loss | Vehicle Insurance
Total loss occurs when your vehicle is not repairable, or when it costs more to repair than what it is worth.
“Actual cash value” means your cost to replace your vehicle with a like vehicle. This includes the retail price, plus all applicable taxes and fees.
“Like car” (or “like vehicle”) means a car that is the:
• same make and model;
• same or newer year;
• similar body style, options, and mileage as your vehicle; and
• in as good or better overall condition.
To achieve “likeness,” you or the company must itemize and confirm in a dollar amount any deductions or additions for options, mileage or condition. An insurer must consider information that you supply when it determines deductions or additions. However, shared information may not always produce a change in the value.
You have the right to payment of the actual cash value of your car, and to expect a prompt and fair settlement. Don’t be surprised if your “value amount” and the insurer’s “value amount” do not match. Be ready to negotiate with the insurer when this happens.
Nov 30, 2008
Total Loss | Vehicle Insurance
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