How do insurance companies determine the value of a totaled car?

Here is my situation. I wrecked my car a couple of days ago, and the man who came to tow it told me that he believes it is a total loss. I am freaking out because I looked at Kelly BB and saw two different prices for cars. The trade-in value was 5000, while the retail value was 8000. If I only get 5000, I will owe 2000 more on the car to pay it off. So I was wondering how insurance companies figure the value.How do insurance companies determine the value of a totaled car?
total loss evaluations are done by guidelines set up by the state department of insurance. they can use several sources, nada, kelly, autosource ect. that will set the basic value range for the vehicle, then a condition report is done on your specific vehicle. if you have prior damage to your vehicle or excessive wear and tear , those damages are deducted from the book value to determine the actual cash value of your vehicle.How do insurance companies determine the value of a totaled car?
GAP insurance is designed to cover the difference between what you owe and the car value. There are many people who are ';upside down'; in their car payments.





You can't go by retail value, the car you bought depreciated at least 35% as soon as you drove it off the lot.
Most companies will not use Kelley Blue Book. They go by what the same car is selling for in your area (KBB is generally a nationwide average).





Whatever dollar amount you get back from your insurance company is negotiable. Start looking through your local auto trader, newspaper, etc. and find proof showing a higher dollar amount. The insurance company will have to factor that into their total.





You may still owe some money, however. As soon as you drive off the lot (I'm assuming you bought a brand new car) the value of the car has dropped. You now owe more than the car is worth. This can be remedied by purchasing GAP insurance. This covers the gap between your loan and the car's value.





Dealerships try to sell this to you and try to add it in on your loan. Don't fall for it. Get it yourself elsewhere. You'll save alot of money. They rip you off.





I'm not sure what state you're in... I'm in California. Mercury (the company I'm with) offers GAP coverage with their insurance and it's usually only $5 or $10 for the entire policy (as opposed to the $500 the dealership wants to charge).