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Negotiating Actual Cash Value for Your Vehicle the Right Way.

Stay at the top of your game and don’t give your insurance company the upper hand when filing for car accident clams Seattle. Stay in the know by learning more about Actual Cash Value and replacement cost.

What is Actual Cash Value?

Actual Cash Value is referred to as the total replacement cost less the age and wear and tear of a vehicle. However, each insurance company defines actual cash value using its own unique proprietary method.

In reality, a new car depreciates the moment you drive the car off the lot. Even if you choose to sell the car a couple of days after buying it, you will hardly find a buyer who will pay you the exact amount you bought initially.

The car’s value has dipped lower than the purchase price. All these and many more are some of the factors that your insurance company takes into account to arrive at the actual cash value for a vehicle.

Another factor they also look at is the vehicle’s age at the time of filing for compensation. Wear and tear as well as mileage will also be put into consideration. The older the car, the lower the amount you’d get as compensation.

Actual cash value will always be lower than the amount of your car loan, especially if you bought the car brand new and have serviced the finances for a couple of years.

An insurance adjuster will get all these information handy to be able to arrive at a reasonable amount for the actual cash value.

However, if you are not comfortable with the offered amount, you can always negotiate. Alternatively, you can seek help from a professional who specializes in car accident claims in Seattle to guide you through the process.

Replacement Cost

The calculated actual value of a car is usually lower than what it would cost to replace a car. If you got involved in a ghastly car accident and the vehicle got damaged even beyond repair, the cost to replace the car will always be more than the value of your car at the time of the accident.

If you don’t want to feel cheated while filing a claim for your car, then you should do what’s right. Instead of opting for the actual cash value option, consider the replacement value coverage option. In this case, you will not only get the full cost of buying a new car but you are also bound to enjoy other perks as well.

Replacement value also covers additional expenses like sales tax, title and transfer fees, and many more. However, you will have to request these extra services to be included in your coverage.

Replacement value car insurance is without a doubt an expensive policy to buy but it is a great deal in the end and a far better option than actual value coverage. Getting a brand new car after the old car was totaled is a great bargain but it comes at a cost- the need to pay more premium.

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