The insurance company has to pay you the actual cash value of your car or truck if it was totaled in a car accident in Pennsylvania. Pennsylvania Insurance Law provides that you are to be reimbursed for property damage if your car was totaled. The law says the insurance company owes you for the "actual cash value" of the vehicle. This means that the actual market value of your car or truck is what they owe you.
Unfortunately, that means that if you financed your car, the financing payments you made or owe may not be payable. For example, if you bought a $10,000 car and with interest, the loan payments were/are an extra $4,000. They don't owe you for the interest on the loan payments.
As to the actual cash value, there are accepted "guide sources". These include Kelly Blue Book and the NADA. The insurance industry was also successful in getting the law to include "CCC" as one of the guide sources. Lawyers often argue that the CCC is unreasonably low in its valuation of vehicles. This lowered valuation by CCC is argued to be done by downgrading the condition of the car or obtaining artificially low "take" prices on used cars from dealers. The take price meaning the absolute lowest amount that the dealer would take for the car (regardless of whether the actually sold for more than the take price).
Under the Insurance Regulations, you can also look to "like-kind" vehicles on sale at dealers. Two comparable vehicles of like-kind can be used to obtain an average and that average can be the actual cash value.
The bottom line is that if the insurance company offers you an amount that you feel is too low for the value of your totaled car or truck, you have certain ways to try to get a fair price. You also have the right to a copy of a written report that explains the insurance company's offer.
ABOUT THE AUTHOR: David E. Schreiber
David Schreiber has been a licensed attorney since 1994. His focus is on personal injury, accident cases and insurance disputes. He is a partner in the firm of Wolpert Schreiber P.C.
Copyright Wolpert Schreiber P.C.
More information about Wolpert Schreiber P.C.
As to the actual cash value, there are accepted "guide sources". These include Kelly Blue Book and the NADA. The insurance industry was also successful in getting the law to include "CCC" as one of the guide sources. Lawyers often argue that the CCC is unreasonably low in its valuation of vehicles. This lowered valuation by CCC is argued to be done by downgrading the condition of the car or obtaining artificially low "take" prices on used cars from dealers. The take price meaning the absolute lowest amount that the dealer would take for the car (regardless of whether the actually sold for more than the take price).
Under the Insurance Regulations, you can also look to "like-kind" vehicles on sale at dealers. Two comparable vehicles of like-kind can be used to obtain an average and that average can be the actual cash value.
The bottom line is that if the insurance company offers you an amount that you feel is too low for the value of your totaled car or truck, you have certain ways to try to get a fair price. You also have the right to a copy of a written report that explains the insurance company's offer.
ABOUT THE AUTHOR: David E. Schreiber
David Schreiber has been a licensed attorney since 1994. His focus is on personal injury, accident cases and insurance disputes. He is a partner in the firm of Wolpert Schreiber P.C.
Copyright Wolpert Schreiber P.C.
More information about Wolpert Schreiber P.C.
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