When you are in an accident, and your car or truck is damaged, the insurance company for the Defendant is going to do one of two things: 1) repair your vehicle or 2) total your vehicle and pay you the actual cash value of your car or truck. To determine whether your car or truck is a total loss, the insurance company is going to see if the cost of repairs are more than 75% of the actual cash value of the vehicle immediately prior to the collision. If the cost of repairs are more than 75% of the actual cash value of the vehicle, the insurance company is going to total your vehicle. If a vehicle is deemed to be a total loss, then the insurance company is required to pay you the “pre accidental actual cash value” of the vehicle. 11 N.C.A.C. 4.0418(5). Though many clients think that the actual cash value is the price of a new vehicle or how much they paid for the damaged vehicle; that is not the case. The actual cash value of a vehicle is the amount that a person is willing buy the vehicle for in the open market. Most insurance adjusters will gather “published regional average values of similar vehicles” to determine what the actual cash value of your vehicle is. 11 N.C.A.C. 4.0418(1). This just means that the adjuster is going to look at other vehicles that are similar to your vehicle’s year, make, model, condition etc… If you have more questions about property damage call us at 919-719-2750, or, stay tuned to our blog as we continue to blog about our frequently asked property damage questions.
To find out more, please visit us at www.owensmiller.com.