{"id":223,"date":"2017-02-01T10:00:03","date_gmt":"2017-02-01T14:00:03","guid":{"rendered":"https:\/\/www.protectiveagency.com\/blog\/?p=223"},"modified":"2024-02-26T16:07:52","modified_gmt":"2024-02-26T20:07:52","slug":"insurance-companies-determine-value-car","status":"publish","type":"post","link":"https:\/\/www.protectiveagency.com\/blog\/insurance-companies-determine-value-car\/","title":{"rendered":"How Do Insurance Companies Determine the Value of My Car?"},"content":{"rendered":"

It happened. You were in an auto accident. You didn\u2019t see it coming, and next thing you know \u2013 you\u2019re on the phone with your insurance company working through the details.<\/p>\n

First off, take a deep breath and relax. If you\u2019re still healthy after the crash, everything is going to be ok. While you may be focused on the value of your car, it\u2019s important to keep the big picture in mind.<\/p>\n

Once the dust has settled, the value of your car may loom large. You want to know how much money you can get to fix or get a new car. We get that. So we wanted to break down exactly how an insurance company will determine the value of your car after an accident.<\/p>\n

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Replacement Cost vs. Cash Value<\/b><\/p>\n

The difference between replacement cost and cash value can be huge in certain situations. Replacement cost is the amount of money you\u2019d pay for your car at today\u2019s prices. Cash Value is the amount you\u2019d pay for a similar car at today\u2019s prices. Cash value can also be seen as replacement cost minus depreciation.<\/p>\n

Most of the time the cash value of your car is significantly less than the replacement costs. This number will be determined by the number of years the car has depreciated. If a car is totaled, it costs more to replace that car than the actual cash value of the car when the accident occurred.<\/p>\n

If you selected the replacement value option when you purchased your car insurance policy, then the problem is addressed. However, this type of coverage increases the cost of your car insurance significantly.<\/p>\n

Certain car owners are willing to pay the extra premiums for replacement value coverage. This will all depend on how much it would cost to replace the car. Depreciation and aging will play a huge role in this.<\/p>\n

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Determining Actual Cash Value<\/b><\/p>\n

You can find your car\u2019s actual cash value, but you\u2019ll need some information, including:<\/p>\n

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