When your vehicle is completely destroyed in an accident your car is a total loss and you will receive its actual cash value. A car is considered totaled if the cost to repair it is more than its value. Value is based on the car's actual cash value, not what the owner owes on the car.
Listed below are factors that will be considered in determining the actual cash value of your vehicle:
- The average cost of two or more comparable automobiles in the local market within the last 90 days
- The average cost of two or more comparable automobiles in areas close to the local market (closest in state or out of state metropolitan area) if there were no automobiles to compare in the local market within the last 90 days;
- The average of two or more quotations from local dealers (if no cars were available); or
- The cost as determined by a recognized used motor vehicle industry source such as:
- An electronic database; or
- A guidebook.
- O.A.C. 3901-1-54(H)(7).
Repairable Damage
If the repairs to your car cost less than the vehicle's actual cash value, the insurance company will pay to have your car repaired. You can have it repaired at the body shop of your choice, however the insurance company may recommend a preferred shop.
Diminution of Value
Diminution of value occurs when your car has lost value after it has been in an accident. Insurance companies generally use used parts to repair the vehicle. In some cases the value of the vehicle is diminished because it has been in an accident and because used parts were used to repair it. (This will apply only to newer cars.) Falter v. Toledo (1959) 169 OS 238; 158 NE2d 893; Allstate Ins. Co. v. Reep (1982) 7 O App. 3d 90; 454 NE2d 580.
Rental Cars
When a motor vehicle's damage is capable of repair within a reasonable amount of time, the owner may recover for the loss of use of the vehicle while it is being repaired. They generally are given a rental car for the repair time. Hayes freight lines, Inc. v. Tarver (1947) 148 OS 82; 73 NE2d 192.
The owner is not required to seek a temporary replacement of their vehicle while it is being repaired. If the owner does not rent another vehicle, the loss of use value would be the measure of damages.
If the claim is against the owner of the damaged vehicle's own insurance company, the owner's insurance policy must include rental coverage for the owner to receive a rental car.
