Total Loss Vehicle Settlement - What Happens When Your Car Is Totaled

In our last post I explained how your insurance company would likely determine if your vehicle was a total loss from a covered accident. Understanding how your company makes this determination is important, however, understanding how they will value your car is even more important.
Once your car is determined to be a complete loss, the process that follows can be confusing. I wanted to provide some insight, from an insurer's perspective, that can help you get through the total loss process should you ever find yourself in that situation.
It is important to remember that, if your car is deemed a total loss, your carrier has a duty and obligation to pay you the ACV (Actual Cash Value) or fair market value for your vehicle. Understanding that, we want to be sure you are armed with solid & reliable information in the unfortunate event you find yourself in this situation.
The Value or ACV process:
The ACV or Actual Cash Value of your vehicle is a term that is meant to demonstrate & prove what the fair market value of your vehicle is on the date of the accident. Your carrier will have your car inspected, noting all options & features as well as estimating the condition of the vehicle prior to the accident. Below is a short list of some of the main variables involved when determining the value of your car:

How To Decipher a Car's Vehicle Identification Number

Just like everyone has a Social Security number, every car that is manufactured has a Vehicle Identification Number (VIN). The automobile industry started using the VIN in the mid 1950s. The VIN is a series of numbers and letters etched on a small metal plate. The VIN tag is located on the far corner of the dashboard on the driver's side of the car (just about where the dashboard meets the front window).
While to the untrained eye, the VIN just looks a random series of letters and numbers. But when you know how to read the VIN, it tells all kinds of information about the specific car that you are looking at. You can find out where the car was manufactured, who manufactured the car and many attributes (engine type, body style and model) all from the numbers and characters in the VIN.
Although through the years, the VIN has had a different number of characters, the current VIN standard has 17 characters. And interestingly enough, the letters I, O and Q are not allowed in the VIN number. Here is a breakdown of the numbers and characters that make up the VIN for each car.