If my car gets “totaled” in a recent automobile accident, isn’t my insurance company obligated to replace my car? How much will I receive?
A. When your auto is declared a total loss, unless you made special arrangements and paid an additional premium, your insurance company will only pay you the actual cash value of the auto as of the date of the loss, not the cost to replace it. Your auto’s value is determined by the following factors: the retail value for an auto of like kind and quality prior to the accident; the price paid for the auto plus the value of prior improvements to the auto at the time of the accident; the decrease in value of the auto resulting from prior unrelated damage which is detected by the appraiser or for which a claim has been paid; and the actual purchase cost of an available auto of like kind and quality.
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