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GEICO Total Loss Formula:
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A total loss settlement from GEICO occurs when the cost to repair your vehicle exceeds its actual cash value (ACV). In such cases, GEICO will pay you the ACV of your vehicle minus your deductible amount.
The calculator uses the GEICO total loss formula:
Where:
Explanation: The settlement amount represents what GEICO will pay you after subtracting your deductible from your vehicle's actual cash value.
Details: A vehicle is typically declared a total loss when repair costs exceed a certain percentage of the vehicle's value (usually 70-75% of ACV). GEICO will determine the ACV based on your vehicle's make, model, year, condition, mileage, and local market prices.
Tips: Enter your vehicle's actual cash value and your policy deductible amount. Both values must be positive numbers. The calculator will show your estimated settlement amount.
Q1: How does GEICO determine ACV?
A: GEICO uses industry-standard valuation tools that consider your vehicle's make, model, year, mileage, condition, features, and local market prices for similar vehicles.
Q2: Can I negotiate the ACV with GEICO?
A: Yes, you can provide evidence of your vehicle's value such as recent maintenance records, aftermarket additions, or comparable vehicles for sale in your area to support a higher valuation.
Q3: What if I owe more than the settlement amount?
A: If you have gap insurance, it may cover the difference between the settlement amount and your loan balance. Otherwise, you would be responsible for the remaining balance.
Q4: Are there additional fees or taxes included?
A: Some states require insurance companies to include sales tax in the settlement amount. You may also be eligible for title transfer fees in some cases.
Q5: What happens to my totaled vehicle?
A: GEICO will typically take possession of the vehicle and sell it to a salvage yard. In some cases, you may have the option to keep the vehicle for a reduced settlement amount.