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Will my insurance have to pay more than the car is worth?

I backed into a 94 Mercedes E320 with a blue book value of less than $1000. Repair bill estimate is over $4000. Will my insurance pay the book value or the higher repair bill?

Sep 23, 2018 San Clemente, CA

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Ava Lynch

Insurance Analyst

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior insurance contributor, providing insights and data a…

Credentials
  • 7+ years of Experience in the Insurance Industry

This can depend. In California, a car is deemed totaled if the cost of repairs plus the scrap value of the vehicle is greater or equal to the actual cash value of the vehicle. Meaning, if your insurance company agrees with the Kelley Blue Book value, it is likely your vehicle will be totaled. If you have collision coverage, you would receive the value of the vehicle minus your deductible, assuming this vehicle is yours.

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