How Do Insurance Companies Figure The Amount They Will Pay You For A Totaled Vehicle?

7 Comments

1. Sarah L
   Posted July 18, 2009 at 1:16 pm | Permalink

   They will use a combination of different things, when my husband had our car totaled they tried to go by the KBB, but they said that the car was only worth $300.00, after a good fight with agents and supervisors, we ended up getting $900.00, we just told them that it wouldn’t be right if we didn’t get a large enough amount to pay for another car.

2. sydkan
   Posted July 18, 2009 at 5:14 pm | Permalink

   You can demand anything you want, Reality is what you are going to get from the insurance companies.
   Most do not pay KBB, NADA or Edmonds or any other kind of book. They will do what is called a market survey based on many things such as year, make, model, mileage, condition, paint, interior, prior damage, tire wear, glass damage. ALl this information is gathered and rates on a scale from poor to excellent and a value is given.
   They owe your for a replacement of your vehicle,not a down payment for a new one or anything like that. The value of YOUR vehicle as it was before the accident.

3. gta_tony
   Posted July 18, 2009 at 9:38 pm | Permalink

   It depends on the insurance company and what state you’re in.
   Some use KBB, some use NADA, some use a combo of them and also use fair market value(they’ll find similar cars in your area and use their asking price on lots).

4. Windowph
   Posted July 19, 2009 at 2:57 am | Permalink

   I got within $100 of KBB value when my Mazda was totaled. Then again, it was in superior condition before the wreck.

5. Badmamaj
   Posted July 19, 2009 at 3:51 am | Permalink

   They use a different system but will try to give you as little as possible.Dont allow that.Demand KBB value.

6. Anonymous
   Posted July 19, 2009 at 9:14 am | Permalink

   i believe they use wholesale or the price you would sell at privately

7. grand lake bum
   Posted July 19, 2009 at 10:52 am | Permalink

   kbb