Actual Cash Value

How Insurance Companies Calculate the Value of Your Totaled Car in Connecticut

If your car has been totaled in an accident, insurance companies typically compensate you for the loss through a method called “actual cash value.” This is the most common approach used by insurance companies, and it’s the preferred method for many. The actual cash value is the amount you would have received if you sold your vehicle just before the accident occurred.

In most cases, the actual cash value comes into play when your car is deemed a total loss—meaning it cannot be repaired for a reasonable cost or is too damaged to be safely driven.

What Factors Are Considered When Determining the Actual Cash Value of Your Car?

To determine how much your car is worth, insurance companies will look at several factors. The goal is to establish the amount they would have to pay you to replace your car with one of similar value in the market, minus depreciation for age and condition. Here are some common elements that affect the actual cash value of your vehicle:

• Mileage of the vehicle – The fewer miles, the higher the value.
• Make and model of the car – Certain cars hold their value better than others.
• Condition of the car – A well-maintained car in good condition will be worth more.
• Operational status – If your car runs well or has mechanical defects, this can affect the value.
• Upgrades or custom additions – Modifications and improvements made to the car may influence its value.

Remember, actual cash value is essentially the replacement cost of your car minus any depreciation based on its age, condition, and other factors.

Which Insurance Company Makes This Valuation?

Your own insurance company will generally handle the valuation if you have collision coverage. In this case, they will determine how much your car is worth before issuing a settlement. While some companies may offer a higher valuation for their own customers, this isn’t always the case.

When the other driver is at fault, that driver’s insurance company should reimburse your insurer for the damages. If your vehicle is totaled, their insurance company will typically cover the settlement, but it may be a good idea to have your own insurer assess the total value as well.

How Does Blue Book Value Affect the Actual Cash Value?

You might have heard of the Kelley Blue Book when it comes to assessing the value of vehicles. While the Blue Book can offer helpful resale values, it’s not necessarily the deciding factor for the actual cash value of your car under Connecticut law.

Your car may be worth more than what the Blue Book suggests, and in such cases, it’s important to provide the insurance company with additional information that could increase the valuation. This could include:

• Maintenance records – Proof of regular maintenance can show your car’s good condition.
• Receipts for upgrades or improvements – Modifications can raise the value of your vehicle.
• Type of mileage – Cars that are driven primarily on highways might be valued higher than those driven in the city due to less wear and tear.
• Custom additions – Features like custom rims, a sound system, or other modifications can add value.

How We Can Help You Get the Maximum Value for Your Vehicle

It’s important to provide the insurance company with the correct and complete information about your car. Bert McDowell Injury Law can help you navigate this process and make sure your vehicle’s actual cash value is assessed fairly. If you believe your car is worth more than what the insurance company is offering, we can assist in presenting evidence to increase the payout.

Get Help with Your Car Accident Claim Today

If your car has been totaled in an accident and you believe the insurance company’s offer doesn’t reflect its true value, don’t hesitate to get in touch with Bert McDowell Injury Law. With years of experience dealing with insurance companies, we can help you fight for the compensation you deserve.

Fill out the form on this page or call us at (475) 231-3274 to schedule your FREE consultation today.