Auto Insurance Values

Auto insurance?

When someone has and accident and their car is total and they have full coverage insurance on the vehicle, does the insurance company only pay the blue book value of the vehicle to the lender? Does the insurance company pay you anything once paying the lender off? How does it really go when a vehicle is total?

Value is determined by ACV or actual cash value of your vehicle. Kelly and NADA as well as other sources are used as a guide to help determine value of an automobile with considerations taken or added for condition, mileage, etc. Hopefully when a vehicle is ‘totaled’ there is less money owed to a leinholder than it was worth prior to the loss. Vehicle gets paid off, insured gets the remainder.