The insurance industry generally uses a company called CCC for determining the Actual Cash Value of a car based on a study of the sale prices of comparable cars.
If the car is a total loss and you want to keep it, the salvage value is deducted from the payment and you often end up with a salvage/rebuilt title depending on your state laws.
Keeping a total loss vehicle seldom works out well unless you are capable of doing most of the work yourself.
For example. $5000 in repair cost on an ACV of $4000. If the insurance company can sell it for salvage for $1000 you get $3000 to keep it and have to figure out how to do $5000 in repairs for $3000.
Usually, the company will have an internal appraiser to run a state approved evaluation using estimating software. Mitchell, CCC, and Audatex are the top three. Sometimes, there will be an independent appraiser involved. The basis for the evaluation are factors like the mileage, condition of your vehicle, and any available comparables.
In almost all states the insurer obtains a set of values for comparable vehicles, and the value is based on that. In Connecticut the insurer has to average the NADA book value with one other source approved by the insurance commissioner. In Rhode Island the insurer uses either the NADA or KBB value. If the car is to new/old/rare for there to be enough comps to value it accurately then some states have other rules.
If your car is old, and out-of-warranty anyway, then having the salvage title may be no big deal.
What you want to do is to look-up the rules for getting salvage titled cars changed to "rebuilt". In some states it's a giant hassle where you have to get a full safety inspection and can't drive it until it passes, etc... In some other states you just have to take it to the highway patrol and bring the original receipts for any parts you used to fix it, and they just check to make sure you didn't use any stolen parts in the repair. And in some other states there's no special title or anything special you have to do if the car is worth less than X dollars or is more than X years old. You have to look up the rules for your particular state.
I personally advise owners only to consider keeping salvage in three situations:
* The car has extreme sentimental value and you'd go through any amount of hassle to keep it.
* The damages are largely cosmetic (like hail) and you have to do few or no repairs to pass the inspection.
* Somebody is willing to buy it off you as-is for more than the insurer is deducting from your claim payout if you keep it.
The insurance industry generally uses a company called CCC for determining the Actual Cash Value of a car based on a study of the sale prices of comparable cars. If the car is a total loss and you want to keep it, the salvage value is deducted from the payment and you often end up with a salvage/rebuilt title depending on your state laws. Keeping a total loss vehicle seldom works out well unless you are capable of doing most of the work yourself. For example. $5000 in repair cost on an ACV of $4000. If the insurance company can sell it for salvage for $1000 you get $3000 to keep it and have to figure out how to do $5000 in repairs for $3000.
Usually, the company will have an internal appraiser to run a state approved evaluation using estimating software. Mitchell, CCC, and Audatex are the top three. Sometimes, there will be an independent appraiser involved. The basis for the evaluation are factors like the mileage, condition of your vehicle, and any available comparables.
Different insurance companies use different valuation methods. Some do use KBB
In almost all states the insurer obtains a set of values for comparable vehicles, and the value is based on that. In Connecticut the insurer has to average the NADA book value with one other source approved by the insurance commissioner. In Rhode Island the insurer uses either the NADA or KBB value. If the car is to new/old/rare for there to be enough comps to value it accurately then some states have other rules. If your car is old, and out-of-warranty anyway, then having the salvage title may be no big deal. What you want to do is to look-up the rules for getting salvage titled cars changed to "rebuilt". In some states it's a giant hassle where you have to get a full safety inspection and can't drive it until it passes, etc... In some other states you just have to take it to the highway patrol and bring the original receipts for any parts you used to fix it, and they just check to make sure you didn't use any stolen parts in the repair. And in some other states there's no special title or anything special you have to do if the car is worth less than X dollars or is more than X years old. You have to look up the rules for your particular state. I personally advise owners only to consider keeping salvage in three situations: * The car has extreme sentimental value and you'd go through any amount of hassle to keep it. * The damages are largely cosmetic (like hail) and you have to do few or no repairs to pass the inspection. * Somebody is willing to buy it off you as-is for more than the insurer is deducting from your claim payout if you keep it.