Do insurance companies typically use the trade in value, private sale, or retail sale value when they determine the value of a car?
How does insurance value a car

1969ChevyC10 09/20/20
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From 1969ChevyC10
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This situation is pretty shitty and unpleasant because insurance companies don't have to decide for you. I think you can find the answer to your question at https://www.moneyexpert.com/car-insurance/low-mileage-car-insurance/. This article helped me find more information about this industry, which is important enough for every driver.
Last year when my Mustang got totaled, my insurance company valued it at retail. They also took into all the mods I had on it and it ended up being valued at over 2 grand more than what my work was trying to sell it for before I bought it. Of course my car was newer than yours and different companies in different states will do things a bit differently.
Thanks for the input I know things vary but this is what most people I’ve talked to are saying. I tried google but I couldn’t get anything more specific than “they use KBB” or “they have an appraiser appraise it” which had me worried that they were gonna total it and not give much for it. I’m a lot more comfortable that that won’t be the case now that I’ve talked to a half dozen people or so and they all have had similar experiences.
I was in a minor accident in my G6 and if they use the trade in value they’re probably gonna total it even though it’s just a bumper because the trade in value on KBB isn’t but 1500 bucks even though private sale is 3-5k and retail is 7.
I think insurance companies take all of those values into . They have to look at what it would take for you to be able to replace the car if it were totaled. So I think they mostly look at local markets since it varies so much across the US.
When my Dad's 08 Mercury Sable got totaled out the KBB was only about $2.5k but they gave him $5k which was about what similar cars were selling for. I doubt the insurance company would total your G6 out over a bumper though. Unless there is damage to the structure of the car behind the bumper.
Reply to: AX5 Engineering
Thanks. I’ve never dealt with insurance so I’m kind of in a state of panic.
Reply to: slow awd
That’s what I was thinking should happen it’s just a matter of how they decide to value the car.