4 Reasons Why You Need an Accurate Car Value For Insurance Claims

Auto insurance is something that people purchase in hopes that it will never be used. Since it only takes one claim to justify the cost of maintaining the insurance, you want to make sure there’s a reasonable amount of coverage include. Should an accident take place, knowing the current car value for insurance claims as confirmed by an expert matters. Here are a few reasons why.

The Importance of Actual Cash Value

Actual cash value plays a major role when it comes to settling accident and theft claims. Essentially, it’s what the car was worth prior to the recent covered event. That figure allows for any depreciation that has occurred over the life of the vehicle.

It also provides the foundation for determining what actions will happen next. While your insurance provider has a process for arriving at that value, it never hurts to get the opinion of an independent expert. No matter what is decided, making sure this figure is accurate is in your best interests.

Determining if the Vehicle is Worth Repairing

You begin to see what an accurate car value matters as the question of making repairs or totaling the vehicle arises. This will happen when the vehicle is examined by a professional that you and the insurance company approve of jointly. The goal is to check the car thoroughly, identify all damage caused by the recent event, and determine how much it will cost to repair the vehicle.

Depending on the actual cash value, the cost of repairs may exceed what the vehicle is worth. In that event, the insurance provider will likely want to declare it a total loss and offer you cash instead. That cash offer is usually enough to replace the vehicle with one of similar value and quality. If the repair cost is less than the actual cash value, they will likely cover the cost of repairs, less any deductible that you’re committed to supply.

Being Able to Claim Diminished Value

Diminished value is the difference between what the car was worth prior to the accident and what it’s worth once the repairs are made. By knowing the actual cash car value for insurance claims and being able to compare it to the value after repairs, you can easily determine this figure. That will come in handy with what you may seek next.

It is possible in many cases to file a claim for diminished value. Your goal is to recoup some of that lost value in the form of cash. Depending on the policies and procedures of the insurance provider, the claim may be approved. If so, you could receive the amount that you seek, or a percentage of that amount.

Figures From an Expert Simplify Things

The thing to remember is that the figure for the actual cash value cannot be obtained from some arbitrary source. It must originate with an authority who has credentials that the insurance provider will recognize. That’s why the inspection to determine the actual cash value must be done by a certified appraiser.

Once you have this figure, the claims process is much simpler. You have a basis for what you are seeking. It also places you in a better position to evaluate any offer that the insurance provider extends. See it as a way to protect your interests as a solution is sought.

Find a local appraisal service and arrange to have the vehicle inspected. Get information related to the pre-accident as well as the post-accident value. When it’s time to talk with the claims adjuster, you will be in a better position to understand your options and know how to proceed.


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