Claim guides / Payouts and bills
When your car is a total loss
How insurers decide, how actual cash value works, and how to respond to an offer.
A car is usually declared a total loss when repairs would cost more than it's worth, or more than a percentage set by state law. The insurer then pays the car's actual cash value (ACV), minus your deductible on your own policy.
How ACV is figured
Insurers typically use valuation reports based on recent sales of comparable vehicles in your area, adjusted for mileage, options and condition.
Reviewing the offer
- Ask for the full valuation report.
- Check the comparable vehicles: same year, trim, options and similar mileage?
- Gather your own evidence: local listings for comparable cars, service records, recent new tires or major repairs.
- Respond in writing with your evidence and the amount you believe is fair.
- Ask about your policy's appraisal clause if you still disagree.
If you owe money on the car
The payment usually goes to your lender first. If you owe more than the car's value, gap coverage (if you have it) may pay the difference.
Total loss thresholds, sales tax and fee reimbursement rules vary by state. Road Protect is not an insurer, adjuster or law firm and takes no referral fees.