Benefits

• In the event of a total loss, the insurance company is obliged to make you "whole" again, meaning that the company pays the fair market value of the vehicle in its pre-accident state.
  
  

Significance

• The insurance company will base the valuation on current market conditions and transaction prices in your area, so you may not receive as much as you hope for.
  
  

Considerations

• If you believe the amount of the claim paid is too low, you may contact the insurance company's claims division and inform the department of your concerns. You will need proof of why you believe the valuation is low.
  
  

Warning

• If there is an outstanding balance on your car loan, the actual cash value is paid to the finance company. If your loan payoff amount exceeds the actual cash value, you will be required to pay the difference on your own, unless you have a Guaranteed Asset Protection (GAP) insurance policy that covers the difference.
  
  

Expert Insight

• If you want to get the totaled vehicle back, Progressive notes that this is possible. You will be required to pay the estimated salvage value of the vehicle that the insurer could have expected to get for the vehicle at an auction.