Auto Claims

Learn more about auto claims and how our claims team has your back throughout the claims process.

How are auto claims paid?

A vehicle damage claim can be settled by either paying for the cost of repairs or totaling the vehicle and paying the actual cash value (ACV).

If your car is in an accident, Acuity will evaluate the damages. If the cost to repair the vehicle is more than the vehicle is worth or it is beyond repair, we will total the vehicle.


How is a vehicle determined to be a total loss?

A vehicle is determined to be a constructive total loss when the cost of repairs nears or exceeds the actual cash value of the vehicle. Some states mandate a total loss threshold, which is a percentage calculated by dividing the cost of repairs by the actual cash value. For example, if the cost to repair a vehicle is $7,500 and the actual cash value of the vehicle is $10,000, the cost of repairing the vehicle is 75% of the actual cash value. If the state requires that a vehicle be rendered a constructive total loss at 70%, then the vehicle in our example would be considered a total loss, as 75% exceeds the state’s total loss threshold of 70%. If the state does not have a mandated total loss threshold, the insurance company may determine the vehicle is a constructive total loss when the cost of repairs plus the salvage value nears or exceeds the actual cash value.


What is actual cash value?

If your car is totaled, most auto insurance policies pay only up to the actual cash value (ACV), which is the replacement cost of your vehicle minus depreciation. This could leave you with a gap between what it will cost to buy your replacement car and how much your insurance company is giving you.

Acuity offers an optional Replacement Benefits Coverage endorsement that will pay actual cash value plus 25% if an accident results in a total loss to your vehiclel. If it is added in the vehicle's first two model years, the coverage will pay for a brand-new replacement vehicle if an accident results in a total loss before the vehicle is five years old. Learn more about Acuity’s Replacement Benefits Coverage.


What happens to my car if it's totaled?

Typically, with total losses, Acuity will take ownership of the totaled vehicle and sell it to a salvage dealer. Each state is different in how it handles salvage vehicles, but it is possible to keep your vehicle after a total loss claim. Acuity would subtract the salvage value from the claim payment.


What is a salvage vehicle?

A salvage vehicle is a vehicle that was damaged and is considered a total loss by the insurance company. Acuity follows each state’s requirements to determine if a vehicle is a total loss and if it should be salvaged. If a vehicle is determined to be a total loss, it may require a salvage or branded title.


What is a salvage or branded title?

A salvage or branded title is a type of vehicle title that includes ”salvage,” “salvage vehicle,” or similar. The purpose of the notation, which is placed by the governing state, is to inform the purchasing public that the vehicle has been rendered a constructive total loss. If the damaged vehicle is later rebuilt, the state would issue a title with the notation of “rebuilt vehicle,” “reconstructed vehicle,” or similar.

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