Determining the Value of Your Totaled Car

If you are involved in a car accident and your car is totaled, you will receive what is called vehicle value for the car. This is the value that the car insurance company puts on your car.

Your car insurance company will give you what’s called “fair market value” for your car. This is what the same make and model with the same wear, tear and mileage is worth on the market at the time of your accident. You may actually owe more or less than this amount.

The insurance company will look at the condition your car is in, including any rust or extreme wear and tear, and factor that in to the amount you will receive. It’s a good idea to do your own homework to see what comparable vehicles are selling for in your area. Sometimes an insurance company can offer you less than you think the car is worth, so it’s important to be armed with the information ahead of time so you know what to expect or to argue the value with your agent.

The best thing to do is keep your car in great condition so that if you do find yourself with a totaled vehicle, it will have the maximum total vehicle value possible. Keep good records on your mileage and how often you have maintenance on the vehicle so you can present this as proof that you cared for the vehicle prior to the accident.

Also consider buying Gap insurance to pay the remainder of your auto loan should you still owe on it when it is totaled. It usually doesn’t cost much to add Gap coverage to your existing car insurance policy.

To get a quote on car insurance with Gap coverage, click on “Get a Quote” at the top of this page. You’ll get custom quotes from many insurance companies instantly.