If your car gets totaled and you have full coverage, does insurance go by trade in value, private party?

Question

Value, or suggested retail value. Or do they go by any of these? I am trying to determine whether to keep full coverage on my car or not because I am fixing to make a lump sum pay off.

Answer 1

OK "full coverage" doesn't mean what you think it means.  There are FOUR possible values that your policy is written on, the most likely one is Actual Cash Value.  In which case, you get the actual cash value.  To figure it out, you can go to www.kbb.com and look at the private party sale value of your car, in your zip code.  Be honest about the condition, because they'll ask for maintenance records to verify.  

In determining whether to keep full coverage on your car, you REALLY need to figure out if you can afford to REPLACE the car, if something happens to it.  If not, keep the full coverage.  If so, drop the collision, and maybe the comp also.

Answer 2

It is always a good idea to hold some good resources at firstplaec.here is one of them.http://car-insurance.online-tips.info/ca...

Answer 3

A vehicle "typically" retains its value for about 10 years. But also depending on the vehicle as well. A BMW would have more value than a Ford after 10 years.

Also check how much you are paying to keep full coverage, then add your deductible to that. If that total equals close to the value of your vehicle according to kbb.com then I would remove collision. Possibly not comprehensive depending on the carrier.(insurance does vary a little by state also) Some companies will cover Glass on your vehicle without a deductible.'

You should really consult with your agent who has personal access to your insurance policy and benefits.

Answer 4

most go by the depreciated value,

pretty much they are trying to give you the least amount of money you are willing to take.

Answer 5

Different insurers have different plans. No one on this forum knows what your policy says. These policies are not all the same...

Please, call your agent and ask for a policy review. This service is free. Your agent will be happy to go through your policy with you, review your individual circumstances, and advise the best course of action. Additionally, you will then be in a good position to decide if you want to shop around for a different policy. Good luck!

Answer 6

Check with the insurance company. I think you will find the settlement will be based on depreciated value.

Answer 7

They don't go by any of those values; each insurance company has it's own value assigned to each model. Most will fall between the trade in and private party values, and will normally be closer to the trade in.

Answer 8

retail, but you would be lucky to get that unless you took out gap insurance on top. They will try and s***w you, dont accept the first offer they give you.

Answer 9

What risk are you trying to mitigate?

Answer 10

they go by the current blue book value, look up "kelly blue book"