Title: Is My Car Totaled? Concerns About Insurance Payout After Repairs
Hi everyone,
I have a 2016 BMW with an Actual Cash Value (ACV) of approximately $11,000. Unfortunately, I was involved in a self-collision. Initially, the service center and insurance adjuster assessed the damage and determined that the car could be repaired for $6,000, which they approved.
However, the repairs didn’t resolve all the issues—the car is still in the service center with ongoing damage to the engine and transmission. Now, the service technician has suggested it might be better to declare the car as totaled.
My question is: Will the insurance adjuster provide the full ACV of the car ($11,000) if it is declared a total loss, or will they deduct the repair costs that have already been authorized? I’m concerned they may offer me only $5,000, calculated as ACV minus the cost of repairs.
To summarize:
– ACV of my car: $11,000
– Total repairs completed thus far: $6,000
Thank you for any insights you can share!
In this situation, it’s understandable to be concerned about how the insurance claim will be processed, especially after further damage has been discovered.
Generally, when a car is deemed a total loss, the insurance company is supposed to pay you the Actual Cash Value (ACV) of the vehicle before the damages occurred, minus any deductible you may have. The ACV is the market value of your car, which you stated is around $11,000.
In your case, since the insurance had already processed and approved $6,000 for repairs, it’s important to communicate that the car is still not in working condition and that further damage has been found. If the service center and the repair shop believe that totaling the car is the best course of action, make sure to document this and communicate it to your insurance adjuster.
Typically, if your car is totaled after initial repairs, the insurance adjuster should not deduct the repair costs from the ACV. You should be entitled to the ACV of $11,000, minus any applicable deductibles. However, you’ll need to advocate for that, potentially providing documentation from the repair shop about the additional damage.
It’s advisable to keep all communication with your insurance company documented and, if necessary, consider consulting with a professional or an attorney specializing in insurance claims to ensure you’re treated fairly.