How do insurance companies determine how much to pay for a totaled car?
Auto insurance provides coverage on an actual cash value (ACV) basis, which means that the company owes the ACV at the time of the loss. The Oklahoma Insurance Department has no authority to determine the appropriate ACV of a vehicle. According to state law, such cost may be determined by: the cost of a comparable motor vehicle in the local market area when a comparable motor vehicle is available in the local market area, one or two or more quotations obtained by an insurer from two or more qualified dealers located within the local market area when a comparable motor vehicle is not available in the local market area, or the cost of a comparable motor vehicle as quoted in the latest edition of the National Automobile Dealers Association Official Used Car Guide or monthly edition of any other nationally recognized published guidebook.
