How Do Insurance Companies Decide What My Car Is Worth?

If your car is damaged or totaled in an accident, one of the first questions you’ll ask is: “How much will my insurance company pay me?”The answer comes down to Actual Cash Value (ACV) — and understanding it before you need it can save you stress, confusion, and even money.

What Is Actual Cash Value (ACV)?

ACV is your vehicle’s market value at the time of the loss — not what you paid for it, and not necessarily what you owe on it.

Insurance companies calculate ACV by looking at:

• Year & Model – Newer vehicles are typically worth more than older ones.

• Mileage – Lower miles usually mean higher value.

• Condition – A well-maintained car will be valued higher than one with wear, damage, or mechanical issues.

• Market Trends – Vehicle values shift constantly based on demand and availability in your area.

How Total Loss Decisions Are Made

If repairing your vehicle costs more than a certain percentage of its ACV — usually 75% to 85% — your insurance company will likely declare it a total loss.

Example:If your car’s ACV is $10,000 and repairs will cost $8,000, the insurer will probably consider it totaled and issue a payout for the ACV (minus your deductible).

Why Knowing ACV Matters

Without understanding ACV, you might:

• Expect a payout higher than what’s realistic.

• Be surprised by a total loss decision.

• Struggle to replace your vehicle with the payout you receive.

We Help You Understand the Numbers

At Goodman Insurance Solutions, we don’t just hand you an ACV number — we walk you through how it’s calculated and make sure you’re getting the fairest settlement possible.

When you work with us, you get:✅ Local market insight to ensure your car’s value is accurate.✅ Advocacy during claims so you’re not navigating the process alone.✅ Coverage guidance so you’re protected before a loss happens.

Bottom line: ACV can work in your favor if you understand it before you’re in a claim situation. Let’s make sure you’re prepared.

📞 Call us today at 620-531-0261 or visit kansasinsuranceagent.com for a free policy review.