Auto Insurance

[obclHORN]

Just a couple of brief questions for those of you who are knowledgable about auto insurance. What's the ratio of cost to repair to value of vehicle that they use to determine whether or not to repair the car? And do they use the value when repaired to determine that? If they do total a car, do they usually come in around retail value for the settlement? Private party? Or trade-in?

Thanks.

 

[7Titles]

That is a loaded question.

The ratio can differ by state and by the insurance company. I believe 60-75% is typical. The value they use would be the actual cash value, best determined by searching autotrader and the newspaper, although insuranc eompanies will probably use an independent company to value the car. If its totalled they will use the same value. If it is totalled, take their third offer, or at least not the first offer.

 

[HatDaddy]

I generally look at a car when it gets around 70% of the ACV. I also look to see what type of impact, structural type damage, possibility of supplements.