insurance payout car totalled

My car is a write-off, so why won’t my insurance company pay for a new one?

It’s important to understand your policy—“replacement value” isn’t the same as covering the cost of purchasing a new vehicle.


Q. My car is a write-off after someone crashed into it. Now, even with the “replacement value” my insurance covers me for,  I’ll be out-of-pocket $15,000 to buy a new one. What can I do?

A. To put it very simply, an insurance policy—any insurance policy—includes something that triggers coverage, and something that the insurance company provides to the insured if that triggering event happens.

Here, it sounds like your car insurance responded because your vehicle was involved in an accident, and what the insurance company is providing to you (among other things, like defending you if you get sued) is the replacement value of your car.

There are two important points to make here.

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