Lets say your car is totaled. What is insurance most likely to pay you back:
trade in value, private party value, suggested retail value, or none of the above (their own calculation)?

 

they average about how much your call sells in the area, millage year things like that, you gota becarefull tho they willl give you less than they can orgianlly youve got argue and you can easily get yourself a g or two more than orginal offer

 

99% of the time it will be their own calculation

The value is definately based off the blue book value however, you will never get the suggested retail value. Expect something closer to the trade in value.

 

Most insurance policies will pay the "actual cash value" of the vehicle. Check out your policy and you should see it in there. Actual cash value is usually closer to the wholesale blue book amount.

 

It is based on cars that are actually for sale in the market. Your insurance company will likely use a 3rd party vendor that specializes in keeping a database on cars that are for sale. They will narrow the search to a certain radius of your zipcode, and within a certain timeframe of your loss. The variables are generally controlled by what is available to get a reasonable scope of the selling price of the vehicle. Say, if they can not find any vehicles like yours that may widen the search. They make adjustments to the value, of course, based on your vehicle's condition, mileage, options, etc. In California, they actually go as far as to check with the Department of Motor Vehicles to see what the actual selling price was for the vehicles that already sold(not sure if any other states require this). This is weighted somehow as this helps to give a better picture of the selling price vs the advertised price.

Blue Book is NOT a valid source for a vehicle valuation. It is a good guide, but when it comes down to it, they do not provide specific examples of vehicles that are for sale and obtainable in your area. If you had to argue the value in a court of law, the credible value is the one you can back with the methodology of how you obtained the value. Saying you read it out of a blue book or off an internet web page has little weight. The reports insurance companies get(through CCC or ADP) have fairly detailed information about the car. Even the seller's info. I've actually called some sellers, particularly when a car is priced way too high. Usually they end up selling for less or not at all. In either case, this is a pretty fair way to determine value and can be hard to refute. You can try to argue for more money, but you may find more often than not, it is hard to dispute the value. Most attorneys never even bother as the reports are pretty good.

However, some pointers on things you should look for. Get a copy of the report. The insurance company will be happy to provide you a copy. Look it over. Make sure your vehicle info that was submitted is correct. This will include the options, mileage, and condition rating. Be honest with yourself on the condition. If any of these are wrong, notify the adjuster. If there was indeed a mistake in the information, it might change the value when the adjuster reruns the report. If you truly feel the comparisons are wrong, find your own. Keep in mind cars generally sell for less than the asking price. Think of it this way when you look at the evidence you provide. Will it hold up in court?