Reader’s Question:

How is the “cash value” of a car determined after a total loss exactly? I live in Anchorage, AK.

Frances

Anchorage, AK

Every insurance providers in Anchorage, AK has their own internal rules and guidelines that are used to determine actual cash value (ACV). I am not aware of any standard table that is used by insurance companies. Determining ACV takes into account the effect of depreciation because of condition, wear and age.

Most insurance providers claims departments use a computerized evaluation process to help them in determining the value of your car. Insurance providers buy third party computer systems (like CCC) that assist them estimate costs in car insurance claims and collision repairs. Third party software supplies insurance companies with software and a database that assists determine the value of a car based upon automating the insurance claims process. These systems have databases that has benchmarking tools to find the true value of a car from dealers and repair shops.

Tags: auto insurance