How is a valuation made when a car is written off?
Baz asked:
When a car is wrriten off in an accident that is not your fault, how does the insurance company figure out the cars worth? Normally your insurance pays you whatever they have insured the car at, but when its not your fault your insurance has nothing to do with it so how does the other parties insurance company calculate how much to pay you?
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on Sunday, September 27th, 2009 at 8:45 pm and is filed under Insurance & Registration.
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When a car is wrriten off in an accident that is not your fault, how does the insurance company figure out the cars worth? Normally your insurance pays you whatever they have insured the car at, but when its not your fault your insurance has nothing to do with it so how does the other parties insurance company calculate how much to pay you?
September 30th, 2009 at 5:58 am
NADA blue book. +accessories -mileage. piegowdealer
October 2nd, 2009 at 11:20 pm
Insurance companies have their own data base which they develop based on market prices for similar cars in your location. There are none that I know of that use the publicly available price guides. Frequently they use the prices from CCC, an independent appraisal company. The insurance company prices tend to be lower so they don’t have to pay out as much money. Howard L
October 4th, 2009 at 4:15 pm
Your statement is not true: “Normally your insurance pays you whatever they have insured the car at”… No insurance company ever pays what you have the car insured at. The procedure is the same no matter which insurance company pays for the car and that is that when the cost to repair is about 70% or more of “fair market value”, the car is totaled and the owner (or lien holder) is sent a check.
Fair market value is what a similar car in similar condition in your area is selling for. It is NOT “blue book” value although you can get a good idea of the value by looking up the blue book value entidtil
October 6th, 2009 at 1:17 am
You should let your insurance company handle it. They will pay you your money the get it back from the at fault driver.
You can insure your car for a set payout. Mu 31yr old ute is insured for $4000. My wifes ten yr old Falcon is insured for market value, which would be wholesale value, maybe $3000 if we were lucky. bikerwoody