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Auto Insurance | How Much Will Insurance Pay For My Car? - YouTube
Channel: ALLCHOICE Insurance
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how much is insurance going to pay
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for my car this
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is one of those questions that we get
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asked a
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ton and honestly it's one of the
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toughest for
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ones for us to actually answer so in
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today's video we're going to try to shed
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some light on that topic and more
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coming up next
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hey folks jack wingate here and on this
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channel we help individuals
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families and businesses save money on
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their insurance
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help you understand insurance a little
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bit better and let you know what's going
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on in the insurance
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industry and my oh my
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do we get this question a ton
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how much is the insurance company going
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to pay for my vehicle
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now normally this situation comes up
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uh when there is a loss more times
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not a total loss so at the end of this
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video we're going to discuss
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what determines a total loss in the
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state of north carolina
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but to start with let's talk about how
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the insurance company determines the
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value on
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your vehicle and it's simple
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they have a computer program that tells
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them how much your vehicle should be
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worth
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that's the long and short answer of it
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but
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that doesn't really tell you a lot and
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for the most part people think that the
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insurance companies are always trying to
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get one over on them with the value of
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their vehicle
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so let's dig in to what that number
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actually means
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in the second question once we uh get
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asked
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how much do they value my car for
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they'll ask well what book value do they
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use
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do they use blue book nada
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i've even heard of a red book i'm not
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even sure where this book belongs
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but i've heard of it the insurance
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company actually doesn't use
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any of those books in their computations
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their software just doesn't do it
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the software actually takes your vin
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number it plugs it in
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and it you know calculate some stuff you
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put into mileage
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general condition of the vehicle and it
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spits out a number
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and that number is supposed to be along
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the lines of this and i've had this
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confirmed by a number of different
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high-level claims people that i've
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spoken with
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the goal of insurance is to put you back
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in a position as close as possible
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to what you were before the time of the
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incident
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so we want to take you
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if you had a 2010 chevy tahoe with 100
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000 miles
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we want to get you back into a chevy
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tahoe with a hundred thousand miles
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in the same condition that yours was in
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but you might ask well i got my check
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for my 2010 chevy tahoe and i wasn't
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able to go get a chevy
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tahoe 2010 model with that money
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what's the difference well the
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difference is this
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the chevy tahoe sitting on a car lot
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somewhere
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more than likely has pretty new to
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fresher
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tires it's been cleaned it's spotless as
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can be
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the dealership has done inspections to
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make sure everything is running if it's
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a reputable dealership
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that car is in as good a condition as it
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possibly can be
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because they're trying to sell it your
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vehicle
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probably wasn't in that good condition
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so in general terms
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your car is actually worth less than
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that same model with the same mileage on
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it sitting on the dealership
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that's just plain and simple it's a hard
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pill to swallow
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but you need to swallow it nonetheless
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so
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what can you do if you don't agree with
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the value
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well first thing to know is this in my
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experience
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most insurance companies and most
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insurance adjusters
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want to do what's right they're not
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trying to get one
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over on you they want to pay you a fair
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price for
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your vehicle
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but people are people carriers are
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carriers
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things happen so if let's say
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that your 2010 chevy tahoe you feel like
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it's worth eight thousand dollars
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and you get offered four thousand
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dollars
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i'm picking numbers out of the air here
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if you don't agree with the value that
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was put on
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by the adjuster it is your right
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to escalate that claim up the chain of
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command
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that adjuster has a boss you can run it
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up to them
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if you still get the same evaluation
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you're still not happy
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i mean there are you could you could
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hire a lawyer to get involved but
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probably not gonna once you pay the
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lawyer you're probably not gonna have
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the outcome that you want
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um i suggest honestly talking you know
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going around to some local dealerships
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finding comparable cars and if it's a
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big
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you know spec a broad range of you know
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prices
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you know you can kind of figure out
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where your car should kind of fit
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and just understand that it's not going
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to be the same price that's at the
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dealership
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but if the price of the dealership is
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ten thousand dollars and you're being
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offered four and the vehicles
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similar condition you know similar
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mileage all things being equal
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yeah maybe you should escalate that up
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if
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you're seeing ten thousand dollars at
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the dealerships and they're offering you
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eight grand or nine grand or seven grand
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it's probably as best you're going to do
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so there are ways to go
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go around and get
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second opinions we do it and with our
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doctors
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we do it with most things in our life so
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don't be
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hesitant to ask your claims adjuster
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to get their manager involved but again
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i do want to say this
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adjusters do a fantastic job for the
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most part they're not trying to get one
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everything back
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they really want to treat you like they
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would be treated
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and give you a fair price for it all
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right
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so why does the value that
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your car can get from the insurance
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company matter
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well i typically see it happen on two
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different situations the most common
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being
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when it's when your car has been total
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lost
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the second is when trying to determine
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whether or not
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you should carry full coverage i.e comp
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and collision
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on your vehicle typically it's an older
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vehicle when someone asks me this so
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the question about whether or not
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someone should carry comping collision
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is
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such a personal matter
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whether or not i carry comp and
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collision on a 2003 tahoe
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my thought process might be different
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than the person down the street
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that typically deals with your financial
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situation and just realistically what
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you want to have happen so
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um if you know you ask your agent
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you know should i carry comp and
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collision on this first off they're
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probably never going to say no you
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shouldn't
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because that's insurance agents just
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don't react that way
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but here's what they should run run with
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you
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on this exercise they should go all
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right well
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if we think that our value
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a similar vehicle is x amount of dollars
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and we know that the comp and collision
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component of your insurance policy for
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this vehicle
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cost y amount of dollars then you can do
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the determination and figure out a risk
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reward scenario
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at some point in time vehicles just
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honestly it's not cost efficient to
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carry comp and collision
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on an older vehicle but
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that's up for the individual to decide
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all the agent can do is cancel
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all right so the most common reason we
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get asked about
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valuations on vehicles is
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drum roll please when you've been in an
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accident
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and the insurance company is looking
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at totaling your vehicle so what does
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that mean
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a total loss on a vehicle means that the
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insurance carrier has determined
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that the value of the vehicle
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the insurance value on the vehicle
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is less than what it's going to cost to
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fix the vehicle
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and this is an unfortunate event at any
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time and hopefully you know all things
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being considered
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no one was injured in the accident but
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you know
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insurance companies are in the business
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of making money and protecting you
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and they can't protect you properly if
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they don't turn a profit
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and turning a profit often means cutting
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your losers
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when you can so in the state of north
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carolina there's a statute that says
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a car is to be total lost once it hits
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75 of the insurance value so
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once again we talked about our
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calculation for coming up with a value
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earlier
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insurance company has decided that your
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car value is ten thousand dollars
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and in this wreck we're already
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at 7 500 worth of repairs
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well then the company is going to
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determine that to be
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a total loss situation doesn't doesn't
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mean that you're not you can't keep your
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vehicle and have it fixed
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it just means they're not paying all the
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amount of money to get it fixed
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they'll basically buy your vehicle back
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and sell it back to you for that salvage
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value
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and then you can do with the money what
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you want
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so 75 is the number in north carolina
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but
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that doesn't mean that every insurance
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company waits until 75 percent to total
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loss
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of vehicle now the adjusters have some
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discretion
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um and depending on the circumstance you
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know
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adjusters have told me that they'll
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start looking at total lossing of
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vehicle
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when the damages are around 55 when you
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know the body shop's like look we're at
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5500 already on this 10 000 vehicle the
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adjusters
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start thinking then hey this might be a
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total loss situation
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now from experience i've seen um
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i've seen insurance kind of talk with
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the adjuster that you know i want to
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keep my vehicle i really like to have it
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fixed and the adjusters will try to do
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their best
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to avoid that total loss when when it's
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in the best interest of the client
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but there are certain points at times
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where again the state mandates you got
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to cut it off at 75 percent of the total
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value so
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that's the total loss situation that we
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discussed
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so hey i hope this has been helpful when
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it comes to determining and
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understanding what the insurance value
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is
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on your vehicle hopefully you understand
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the total loss situation it is kind of
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one of those insurance terms that
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people kind of glance over and don't
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understand and until next time
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we'll see
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