Should an insurance company give you what your car is worth or how much it would take to replacement it?

Question

The insurance adjuster (my car is totaled) says that he is only obligated to give me what my car is worth and he determined that figure was determined by taking a random 30 cars and averaging their prices -- not considering some have been wrecked, etc. My car was in great shape with some "extras." Also, should the money awarded include what taxes will cost on my next vehicle as well?

Answer 1

Replacement cost? You wish. They will give you only what they have to, by law. No taxes, either.

Answer 2

did your premium paid reflect the risk of losing the replacement cost?  if so, then yes.

Answer 3

You are owed the "actual cash value" of that vehicle. That means - what you could have reasonably sold the car for -given it's age, condition, mileage, options etc. They do NOT owe you what it costs to replace your car.  You can ask for tax, tag and title. They will use the value of the wrecked vehicle to determine the taxes they pay you. They don't pay taxes on the new car.

Answer 4

Fair market value, adjusted for condition, providing of course that you notified the insurance company of the 'extras' when you installed them, and paid an additional charge to insure them.

High mileage would adjust the rates down, as would basic trim packages that didn't include electric locks and windows.

New tires or an upgraded stereo system would adjust it up.

Answer 5

In Missouri you would recieve a 'tax waiver' so you would not have to pay taxes on the next vehicle you purchase.

AND any monies you recieve for the loss of your vehicle can not be taxed.

I am getting one - well supposedly - good luck getting any $ out of the company - I am waiting 6 weeks STRONG on paperwork (not payment, paperwork)

remember that the insurance company is not your friend & do not have to be nice to you.

They're keeping my attorney worki'n hard on this one!

Answer 6

You get the Actual Cash Value for your vehicle, that is it.  If you think your vehicle is worth more, do some research and prove that it is worth more than the offer.  You never get replacement cost unless you have a newer vehicle and your policy states that you you will receive replacement cost.  A few insurers now offer such coverage.  

Make sure the adjuster has all of the correct info.  Did they deduct for old damage?  Mileage correct?  What condition did they run it through as.   It sounds like they are using CCC to evaluate your vehicle.  Ask for the report.  Provide the adjuster with the receipts for the "extras".  They may make some minor adjustments.

No, you are not entitled to the taxes for your new vehicle.  However, depending on what state you live in and if they take your vehicle, you are entitled to the sales tax on your current vehicle.

Answer 7

Oklatom is correct, however, if you are looking to purchase a brand new vehicle and insure it, Allstate does offer a program for that will provide for a replacement of your vehicle if it is brand new when it is totalled. I am not sure of the details of how the program works and I sure the premium to have such a benefit is more. Additionally, I don't know how long that coverage would last (ie: first year you own your vehicle). It is just something to think about if you are looking to purchase a new vehicle.

Answer 8

They pay what the vehicle is worth Kelly Blue book plus the condition of the vehicle and the milage all play an factor in the worth of the vehicle. If you had "extras" those too can be considered if you have reciepts or the insurance company took pics. And no they do not add the taxes for the next vehicle into the pay out of the claim.

Answer 9

The company has a right to give you a median price. That is the most honest way for them to do it. I'm sure if they only gave you what potential usable parts are there along with the price of metal, you would walk away with practically nothing! So a median price is better than them giving you a lowest price possible. As for the extras, this would have had to be added on the policy to be covered. Which usually isn't worth it, save up the money to buy more goodies for it :-) Good Luck & Hopefully Your Safe From The Accident!