I had my car wrecked by a shipping company while trasporting my car and I'm currently dealing with the insurance company of the shipper(not mine). My car has been declared a total loss , now the insurance company is agreeing to pay only the acv of my car which is way below the market value of the car. Am I entitled to get a replacement value of the car from them or only the acv. I was not at fault and there is no reason I should be at loss . Am I legally bound to get the replacement value of the car.
you are entitled to the actual value of the automobile NOT what you owe on the automobile. The ACV is the value of the automobile not what the sticker price would be on a car lot.
Your vehicle’s actual cash value (ACV) is the fair market value of your car, so I think you are confusing this with replacement value. If you bought the car new recently, chances are the insurance policy says they will pay the depreciated value. You have been paying extra if the policy says they will pay the new car price, since this is an add-on option.
If you aren’t happy with your ACV, consider negotiating with the insurance company. Be very firm on what you believe they should offer you. This will of course require you to do some research online on what your car is actually worth.
My colleagues are absolutely correct that you are only entitled to the ACV (actual car value) in order to compensate you. You are not entitled to the replacement value costs.
The information provided in this answer does not create an attorney-client relationship and is not considered to be legal advice.
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