How Do Insurers Determine Your Car’s Value After a Total Loss?

Dowd Insurance Agency | Serving Central Texas Drivers

If your car’s been in a serious wreck, your insurer might declare it a total loss—but what does that really mean?

Let’s break it down simply for Central Texas drivers.

🚗 What Is a Total Loss?

In Texas, a car is considered a total loss when the cost to repair it equals or exceeds its actual cash value (ACV). So if your car is worth $9,000 but needs $10,000 in repairs, it’ll likely be totaled.

💰 Step-by-Step: How Insurers Value a Totaled Car

1. Determine Actual Cash Value (ACV)
   This is the market value of your car just before the accident—not what you paid or owe. Insurers look at:

• Year, make, and model
• Mileage and condition
• Features and upgrades
• Local market prices in Central Texas

2. Apply Depreciation
   Your car loses value over time. Age, wear and tear, and mileage all factor in. A well-maintained vehicle may retain more value, so keeping records can help.
3. Subtract Your Deductible
   If your ACV is $10,000 and your deductible is $1,000, your payout will be $9,000.
4. Make a Settlement Offer
   Once ACV is set, your insurer offers a payout. If you think it’s too low, you can dispute it with comparable listings or an independent appraisal.

❓ Common Questions

Can I keep my totaled car?
Yes, but it’ll have a salvage title, which limits resale and future insurance coverage.

What if I owe more than it’s worth?
Without GAP insurance, you’ll still owe the difference on your loan.

Will my rates go up?
If you weren’t at fault, your premium may not change—but it’s case by case.

🛡️ Why Choose Dowd Insurance Agency?

At Dowd Insurance, we don’t just sell policies—we help you understand them. If your car’s ever totaled, we’ll guide you through the process, explain your options, and advocate on your behalf.

✅ Final Thoughts

Understanding how your car’s value is determined after a total loss helps you stay in control during a stressful time. If you have questions about your coverage or need a second opinion, we’re just a call away.

📞 512.331.0787 | 🌐 www.dowdinsurancetx.com