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Market value vs true replacement of car

by Ray

The other car at fault insurance told me the market value of the totaling car. But, I am not able to buy the similar car with that amount from the dealer. How shall I do if the car replacement cost is higher than the market value of the totaling car?

Should I take additional money from my pocket to buy the similar car from the dealer? Can I insist on getting a car replacement instead of compensation if the market value is not acceptable? Thank you for your answer.


Ray, we are sorry to report that insurance companies will get away with this. They do not owe you to replace the car according to the law. We know this is highly unfair because as you know, you will not be nearly in the same position you were before. You had a good car and now you don’t. Somehow you are supposed to find a car that is just the same in condition and value as the one you had. We know that is nearly impossible.

Again, insurance companies only pay actual cash value, and that is very different from replacement cost. You can argue that the fair market value of the car is more than they are offering. They will never agree to replacement cost.

Good luck,


Comments for Market value vs true replacement of car

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Nov 21, 2007
One of the reason we should change legislation
by: Casey

This is why we should have regulations to protect against insurance companies. They define a lot of terms and you will be required to understand and abide by them.

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