Expert: Richard L Carranza - 7/1/2005

Question
My insurance valued my car at $4800 (about what I thought) but took off $800 for a scratch on the opposite side of the accident damage and rear bumber damage from parking in the city.  Is that normal to deduct small wear and tear on a car that is totalled any way?  When I complained he told me to claim that damage on a separate claim and he would only deduct $250, instead of the $800, which is the second deductible so a total of $500 from the $4800 for $4300 is the amount I will receive.

Answer
When a vehicle is totalled and the insurance company determines the Actual Cash Value (ACV) that ACV is predicated on the year, make, model, equipment, mileage and condition of the vehicle.

While average wear and tear is acceptable and will not lower the ACV, DAMAGE to the vehicle is not considered wear and tear and will be deducted from the initial ACV.

The fact that the company is letting you essentially make a claim and collect (less your deductible) after-the-fact (for the prior damage) appears to be a good deal. Technically they could have looked at the prior damage as two separate incidents or "occurences" and taken two deductibles instead of one.

Lastly, my math is a tad different then yours... $800 less $250 = $550.00.

Hope and trust that the above ansers your question.

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