What's the Value of Your Vehicle?
New York Auto Accident Attorney
When you're involved in an auto accident and your vehicle is damaged, if you have enough coverage, your insurance company is responsible for repairing or replacing your vehicle. If your car must be replaced, how does the insurance company determine the value of your vehicle?
Actual Cash Value (ACV)
When you file a property damage claim, the insurance company will attempt to determine the "actual cash value" of your car before the accident. The insurance company may consider the:
- age and mileage of the car,
- region where you live,
- average resale value of other vehicles like yours,
- tax and registration costs of buying a new vehicle,
- cost of a rental vehicle during repairs,
- value of the vehicle as scrap metal, and
- if repairing your vehicle will diminish its value, etc.
Total Loss
To determine if your vehicle is considered a "total loss" or "totaled," the insurance company will typically use a formula like this one:
If the cost of repairs is higher than your vehicle's ACV, the insurance company may consider your vehicle a total loss.
Diminished Value
"Diminished value" or "loss of market value" is the difference between a vehicle with an accident history and a vehicle without an accident history. A vehicle that was involved in an accident may be worth less than a similar vehicle of the same year, make, and model, which has not been involved in an accident.
After an accident, you don't have to deal with the insurance company alone. Get a New York car accident lawyer with years of experience on your side. Find out how the New York auto accident attorneys at the Law Offices of William Mattar can help you today.
Hurt in a Car? Call William Mattar! Contact our New York auto accident lawyers by completing a FREE initial consultation form or by calling 444-4444 today.
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