Condsiderations

• Your insurance company will consider a number of factors in determining whether to repair your vehicle or deem it a total loss. These include the projected value of the vehicle after repairs, the cost of the repairs and how much the insurer would have to pay you for reimbursement for a rental car while your vehicle is being repaired. If the claims adjuster calculates the claims-related expenses as being higher than the cost of replacing your vehicle, you can expect the latter to occur.
  
  

Actual Cash Value

• Insurance companies determine your vehicle's actual cash value (ACV) to determine how much it will offer to pay you if your vehicle is a total loss. Each insurer calculates ACV a bit differently, but in general, your company will first determine the vehicle's "blue book" value, which indicates the market value of similar models, then adjust it for things like high mileage. State laws also play a role in determining which ACV calculation methods insurers are permitted to use.
  
  

Disputing the Value

• Insurance companies earn profits in large part by keeping claim payouts to a minimum, so it may not be a good idea to simply accept the adjuster's initial assessment of your vehicle's value. If you feel your company is "low-balling" you, check your policy provisions to determine your rights. Depending on the rules of your company and the laws of your state, you may be eligible for arbitration, a process where you and your company each submit a figure to an impartial third party, who then decides which figure is more accurate.
  
  

Keeping the Car

• Just because your insurance company decides to total your vehicle, it doesn't necessarily mean it is no longer drivable. If you decide you want to keep the car, you can offer to buy it back from the insurer. However, the company will likely subtract the amount if would have received by selling your vehicle for salvage from your settlement amount, so you will probably have to come up with some cash to complete the transaction.