How insurers value a totaled car

Actual cash value, or ACV, is what your car was worth right before the loss. Most insurers start with valuation software. The software looks at similar cars for sale near you, called comparables.

Then the value is adjusted for your car’s mileage, options and condition. Condition adjustments are often cuts for dents, stains or wear.

• The comparables should be the same year, make, model and trim, or close to it.
• Your options and packages should be counted.
• Mileage should be your real mileage at the time of loss.

What Missouri requires of the valuation

A Missouri rule for car claims says any cut for betterment or depreciation must be in the claim file, itemized, and appropriate in amount (20 CSR 100-1.050).

In March 2026, the Department of Commerce and Insurance warned insurers about valuation software (Bulletin 26-04). It said software use can lead to undervalued total losses. It told insurers to document every adjustment and to clearly state what was cut and why. It encouraged insurers to:

• count trim packages and other vehicle options;
• consider upgrades you added after purchase, if the policy covers them;
• avoid taking condition cuts the software already took;
• raise the value if your car was in better shape than the software assumed;
• avoid changing values as a haggling tactic.

A bulletin guides insurers. It is not a statute. But it tells you what questions to ask.

How to check the offer

1. Ask for the full valuation report, including every comparable car and every adjustment.
2. Check each comparable. Is it the same trim? Similar miles? Near you?
3. Find your own comparables from dealer listings. Save screenshots with dates.
4. Gather records of recent repairs, new tires and added options.
5. Send your findings to the adjuster in writing. Ask for a written reply.

If you still disagree on value, check your policy for an appraisal clause. Many auto policies have one.

Other Missouri rules that can matter

• Sales tax credit. If you buy a replacement vehicle within 180 days of the insurance payment, Missouri lets you credit the insurance proceeds plus your deductible against the purchase price for sales tax (RSMo 144.027).
• Salvage title. Missouri’s title law treats a car within six years of its model year as salvage when repair costs exceed 80 percent of its fair market value. A car an insurer declares salvage after settling a claim is also a salvage vehicle (RSMo 301.010).
• Loans. If you owe more than the car is worth, the payment may not pay off the loan. Check whether you bought gap coverage.

Your insurer or the other driver’s insurer

If you claim under your own collision or other physical damage coverage, Missouri’s penalty law for refusing to pay without reasonable cause can apply. See the vexatious refusal guide.

That penalty law does not apply to automobile liability insurance (RSMo 375.420). So a claim against the other driver’s liability insurer follows other rules. See car accident claims and Missouri auto insurance requirements.

Harjot Singh Padda, JD can review the valuation report and explain your options.

Common questions

Related reading

• Property insurance claims overview
• Car accident claims
• Uninsured motorist claims
• Missouri auto insurance requirements