Vehicle Value Calculation by Insurances

[mactube]

How do insurance calculate the value of cars in case of a total loss ?

I'm trying to evaluate if it's even worth it to keep a full coverage insurance on a car, if the car is older.
In this case, the car has over 200k miles on it, which usually has quite a big effect on the resell value but the prices for used cars are still so high, that this car which is valued between $1500 and $3500 on Kelly Blue Book ( depending on dealer, private sale or trade in )
will still sale for 4-5k on the open market in California.

 

[Newby]

I would not carry coverage on a car that you can replace for $3,000.

They go with book values. But it’s crazy to insure small stuff.

 

[adjusterjack]

I'm trying to evaluate if it's even worth it to keep a full coverage insurance on a car, if the car is older.

That's a personal choice depending on how much you pay for comprehensive and collision coverage vs what the actual cash value is vs how much money you have set aside to immediately replace the car if it is wrecked or stolen and there is nobody but you to pay for it.

will still sale for 4-5k on the open market in California.

Which means you will pay 4-5k to replace it with a comparable car. That's the factor you should be concerned about. At the time of the loss, the insurer will look at actual sales of comparable vehicles. If verifiable sales are in the 4-5k range then that's what the insurance ACV will be.

Now factor in what your premium for comp and collision is, what your deductible is and how much money you have to set aside to replace your car.