Why can't insurance companies offer you Retail Value on a total loss car?

I was involved in a car accident and it鈥檚 determined that it鈥檚 100% the other party鈥檚 fault. My car is a total. My insurance did my car valuation since my insurance covers two way.

ok.. I now understand the value my insurance co can offer to my total loss car is at the actual cash value. BUT, when I go to the dealer and buy a same car as the one I lost, I'm paying them the RETAIL VALUE. and actual cash value is always less than retail value. So who is paying for the difference???

If I file a claim to small claim court and sue the party at fault, he will ask his insurance to pay for it. What if his insurance policy says they can't cover this difference? Will he be paying?

I'm also trying to ask for the compensation for the time I involved in this case. I spent lots of my own personal time dealing with both party's insurance co. Am I likely to win here?

I know my insurance is supposed to handle the case and i'm not supposed to spend my own time dealing with this case. BUT my insurance co (Allstate) does not work on my behalf.... They very rude and gave me lots of hardships and frustrations.

Auto insurers generally pay the market value of the vehicle of the age and condition when totalled or stolen -- actual cash value (acv), because that is the value of what you lost. What you are asking for is not just REPLACEMENT value but inflation adjusted replacement value. The reason they don't insure that is because IT WOULD COST TOO MUCH! It would also provide too great a temptation to people who want a new car. Why buy one when you can just leave the keys in the ignition at the beach parking lot & get a new one for free? Many homeowners policies do provide this coverage as an extra cost option for building damage -- but that's because it's unlikely people will set fire to their homes to get a new roof.

That information is mostly incorrect :) Report It

ACV is not retail. If you go to the Kelly Blue Book site, you'll see several different values, the highest being the dealer price.

The price you're getting is what *you* could sell the car for, not the dealer.

It's highly unlikely you could get relief for the difference between ACV and retail; and definite that you will not get compensation for your time.

The correct term is Market Value. They can offer this to you if... the market value has to be written in your policy. The other party may have that amount in thier liablility coverage (unlikely but possible). This is the reason people REALLY need to read their policies & ask questions. If you are only covered for ACV that is all you will get. You cannot collect from two places. Sorry but it's the way it works. WAIT. It does also depend on the state. Call your carrier & ask all these questions. Additionally, ask them how you can up your coverage to Market Value. If they won't do it find a reputable company that will.

NEVER take the first offer an insurance company gives you after the total loss of a vehicle. Do your research and have arguments ready as to why you should be receiving more. It's a negotiation.

I suppose it could offer Retail Value, but why would they when you have already used the car and depreciated the retail value. They are giving you what you are out, not giving you a brand new one. Now, I don't totally agree with how things are handled when it comes to insurance, but it's just the way it is! You could sue the party at fault for the difference and your lost time and receive a judgment against him if you win. The party at fault could not send it to his car insurance company at that time.

You have entered the hazy world of insurance. The situation that you describe is or should be covered by 'gap insurance', which is yet _another_ insurance policy that you must pay for.
It is only their (the insurance company's) way to steal a little more from you.

Insurance is legalized robbery.

EDIT: DON'T LET UP ON ALLSTATE!
They are a rip-off company and they need to be brought down. If they do not treat you right, go to your state's insurance commissioner and complain complain complain.