What is Actual Cash Value (ACV)?

Actual Cash Value is generally the market value of a vehicle immediately before a loss occurs. Insurance companies often determine ACV using vehicle condition, mileage, options, and comparable market data.

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What is a Total Loss?

A vehicle is considered a total loss when the cost to repair it, plus its salvage value and related expenses, meets or exceeds state or insurer thresholds.

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What is Owner Retention?

Owner retention allows a vehicle owner to keep a totaled vehicle after a claim settlement. State regulations, vehicle condition, and insurer guidelines may affect eligibility.

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What is Salvage Value?

Salvage value is the amount a damaged vehicle may be worth when sold for parts, repair, or recycling after a total loss.
 

What is Diminished Value?

Diminished value refers to the reduction in a vehicle's market value after it has been involved in an accident, even if repairs were completed properly.
 

What is a Deductible?

A deductible is the amount a policyholder must pay before insurance coverage contributes toward a covered loss.

Example:

• Repair Cost: $5,000

• Deductible: $500

• Insurance Payment: $4,500
   

What is Collision Coverage?

Collision coverage helps pay for damage to your vehicle resulting from an impact with another vehicle or object, regardless of fault.
 

What is Comprehensive Coverage?

Comprehensive coverage generally applies to non-collision losses such as:

• Theft

• Vandalism

• Fire

• Hail

• Falling objects

• Animal strikes
   

What is Liability Coverage?

Liability coverage helps pay for injuries or property damage you cause to others when you are legally responsible for an accident.
 

What is Underinsured Motorist Coverage?

Underinsured Motorist (UIM) coverage may help pay damages when the at-fault driver has insurance limits that are insufficient to cover your losses.
 

What is Uninsured Motorist Coverage?

Uninsured Motorist (UM) coverage may help protect you if you're involved in an accident with a driver who has no insurance.
 

What is Gap Coverage?

Gap (Guaranteed Asset Protection) coverage may help pay the difference between:

• What your vehicle is worth (ACV)

• What you still owe on your loan or lease

  * Sold by your selling dealership or lien holder
   

What is Subrogation?

Subrogation is the process through which an insurance company seeks reimbursement from the responsible party after paying a claim.
 

What is Betterment?

Betterment is a deduction that may occur when a repair results in a vehicle being in better condition than it was immediately before the loss.
 

What is a Salvage Title?

A salvage title is issued when a vehicle has sustained significant damage and has been declared a total loss by an insurer or owner.
 

What is a Rebuilt Title?

A rebuilt title is issued after a salvage vehicle has been repaired and passed any required inspections under applicable state regulations.
 

What is an Insurance Appraisal Clause?

Many policies contain an appraisal provision that may allow disputes regarding the amount of loss to be resolved through an appraisal process rather than litigation.
 

Why Might Two Vehicle Valuations Differ?

Valuations may differ because of:

• Vehicle condition

• Mileage

• Options and packages

• Local market conditions

• Comparable vehicle selection

• Documentation reviewed
   

What Documents Should I Keep After an Accident?

Recommended records include:

• Police reports

• Repair estimates

• Photos

• Rental receipts

• Tow bills

• Storage invoices

• Medical records (if applicable)

• Claim correspondence
   

Can I Dispute My Insurance Settlement?

Policyholders may have options to question or dispute a settlement amount if they believe relevant information was overlooked. Supporting documentation and independent evaluations can often help clarify valuation concerns.

Disclaimer:

The information provided on this website is for educational purposes only and should not be considered legal, financial, or insurance advice. Coverage, policy language, state regulations, and claim outcomes vary. Consult your insurance carrier, attorney, or qualified professional regarding your specific situation.