How does an insurance company determine the value of a car?

Answer by  mysteriousgrl25 (26)

Insurance companies determine the value of a car based on the car features, condition and mileage. They usually use Kelley Blue Book to base the cost plus the the current market in which the same vehicle is being sold. There is no place for sentimental value when valuing a vehicle.

Answer by  RBaumann02 (90)

An appraiser will come to your home or place of business and examine the vehicle's condition, as well as take into account things such as mileage, age, model, and year of the car. They also may use pricing guides such as Kelly's Blue Book as a guide.

Answer by  tamarawilhite (17883)

The value of a car is based on its replacement value. Replacement value is how much it would cost to buy a new one of the same make, model, and year. The value of a car is paid out if it is totaled and scrapped. Otherwise, they will only pay for repairs.

Answer by  John (9008)

They look at how much you could have gotten selling the car in the exact same condition in which it was just prior to the accident. Usually, this means going to a reference like Kelly Blue Book, but they can also look at more local indicators.

Answer by  Ndlightningbug (132)

An insurance company determine the value of a car by using Kelly Blue Book values for the car, given the year, make and model. They will then offer you what the average value is for that car, or possibly a 'like' replacement.

Answer by  dariand (21)

An insurance company will determine the value of a car depending on the year of the car, the make and model, and how many miles are on the car. As well as if the car has been in a previous accident.

Answer by  TheAnswerFairy (2345)

Insurance companies use a program similar to the Edmund's Blue Book that takes into account mileage, age, options, condition, etc.