Will My Auto Insurance Payout Be Enough For Me To Buy The Same Car?
Car collisions are inconvenient in and of themselves, but finding out that your vehicle is a total loss may feel like an even bigger headache. So how much money can you expect to get when your vehicle is totaled?
First of all, it’s important to remember that you will be paid the actual cash value of your vehicle. Note that this is not the same amount as what a car dealership, whose mission is to make a profit, would sell your vehicle for off their lot. For that reason, your settlement amount may or may not be enough to replace your car with one that is the same make and model.
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What is Actual Cash Value?
Actual cash value has more to do with what your property is actually worth in today’s market. In other words, if you were selling that same sound system, what would a buyer be willing to pay for it? Sentimental value does not apply. Even if it was a best-in-class system when you bought it four years ago, in all likelihood, its fair market value would be less than what you paid for it at the time of purchase. It “depreciates”.
In most cases, if your vehicle is totaled in an accident, meaning that the cost of repair is greater than what the vehicle is worth, the settlement that you receive from your insurance company will reflect car’s actual cash value. It may not be enough to replace your vehicle, but it will be a fair payment for your vehicle’s make, model, miles, options and condition ratings, minus your deductible.
What Will My Settlement Be?
How does the auto insurance company come up with your settlement amount? That figure is based on several factors, including your vehicle’s condition ratings, options, and mileage. Your settlement amount will reflect the actual cash value of your vehicle, minus your insurance deductible. If you choose to keep your vehicle, then you will be paid the actual cash value, minus your deductible and its salvage price. They follow Nevada’s state guidelines through the entire process and use an independent third-party source to reach a fair settlement amount.
Nevada Insurance Enrollment Can Help
Finding out that your vehicle is a total loss may be disappointing, but the process doesn’t have to be confusing. Your Nevada Insurance Enrollment auto insurance agent can help you navigate the entire claims process and understand why you’re receiving your settlement amount.
Read More: Auto Insurance in Las Vegas, Nevada
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DISCLAIMER: It is important to note that the information contained herein is made general for the purpose of explanation. You should consult your policy for exclusions or other language that may alter your policy.