10 Jan Steps Used by Insurance Companies to Determine the Value of your Car
Insurance companies tend to follow a particular set of rules when it comes to determining your car value. These rules comprise of their terms and conditions, estimating an amount that they feel is right. Although this value might be their final call, you can proceed ahead for claims of revaluation. If things seem to fit the bill, then you might receive the right kind of benefits. But to make such claims, you need to understand their process of evaluation formally. Hence, to shed more light here’s all that you need to know about the same.
ACV or Actual Cash Value is the value that insurance companies tend to pay you in case your car is totalled or stolen. Your insurer will determine this particular amount after they go through a set of procedures. But the final amount will always be deducted by collision coverage which you will have to pay.
2. Why It Might Be Lower
Although ACV will not always be lower, most of the time, you will be faced with a similar situation. There are various reasons associated with the same. Mainly ACV takes into account factors such as usage, wear and tear over the years, and thus the final amount will be lesser. Regardless of how you’ve taken care of the car, depreciation comes into the picture and matters will be determined accordingly. Even if you have bought the vehicle recently, you may still not get the actual value because the car can no longer be called a brand new model.
3. Terms of Calculation
Almost every insurance company follows industry standards while they plan on determining the value of your car. Apart from the usual depreciation, wear and tear, companies also check the market value. For this purpose, they tend to compare it with other cars and find out whether other individuals have kept the car for sale. All such details will be revealed to you to help you understand their technique. At times, you may be surprised since you have received more than what you paid for. But of the scenario backfires and you believe that your vehicle deserves more, then you can always go ahead to make claims.
Claims and Disputes
The second option of disrupting over the claim is readily available, and you can always use it in case you feel that you have not received the right amount. For this purpose, you will have to show valid information to prove that you deserve more. To fulfil the same, you need to start looking for the current value and determine the fact. You can begin by visiting dealerships or checking the internet. If the company feels that your claims are valid, then you will get the right amount.