Subject: Questions About Insurance Payout for Totaled Car
Hi everyone,
I have a 2016 BMW with an Actual Cash Value (ACV) of around $11,000. Unfortunately, I was involved in a self-collision. The service center and the insurance adjuster assessed the damage and authorized $6,000 for repairs. However, the car is still not in perfect condition and remains in the service center.
Recently, the service technician informed me that it’s better to consider totaling the car due to additional damage to the engine and transmission.
I’m concerned about how the insurance adjuster will handle this situation. Will they pay me the full ACV of the car, or will they deduct the cost of the repairs that have already been authorized?
I’m worried that they might calculate it as follows:
ACV ($11,000) – Repairs Done ($6,000) = $5,000.
Any guidance on this would be appreciated! Thank you.
In your situation, it sounds like you’re dealing with a complex insurance claim, and it’s understandable to have concerns about how the insurance adjuster will handle the valuation of your car.
Typically, when a vehicle is totaled, the insurance company will determine the Actual Cash Value (ACV) of the car at the time of the loss, which seems to be around $11,000 in your case. If they declare the car a total loss, they should generally provide you with the full ACV amount, rather than deducting repair costs that were already authorized and paid for.
However, if the adjuster has previously approved repairs, and those repairs were completed, there might be some discussion on how that impacts the overall settlement, especially if further damages have been discovered that warrant totaling the car.
Here are a few points to consider:
Total Loss vs. Repairable: If your car is ultimately declared a total loss, most insurance companies will pay the ACV without deducting for past repairs.
Documentation: Make sure you have all necessary documentation regarding the damages, repairs performed, and any communications with the insurance adjuster and service center. This evidence can be beneficial in negotiations.
Communicate with Your Adjuster: Stay in contact with your insurance adjuster to clarify the situation. Explain the new findings regarding the engine/transmission damage and request a reevaluation.
Insurance Policy: Review your insurance policy, as it may have specific clauses regarding how total loss claims are handled.
Consider Seeking Legal Advice: If you feel that your claim is being mishandled or you’re not being offered a fair settlement, consulting with an attorney or a claims advocate might be beneficial.
In summary, if your vehicle is declared a total loss, you should expect to receive the ACV of $11,000, rather than having it reduced by the repair costs. However, clear communication with your adjuster and appropriate documentation is crucial to ensure you receive what you’re entitled to.