Insurance is made to return you to the position you were in immediately prior to the accident. That means when a car is damaged, the amount needed to fix it to the condition it was in prior to the accident. When a car cannot be fixed or would cost more, the amount one is entitled to would be the amount to buy an identical car, regardless of what is owed.

Therefore, the fair amount would be the retail book value, less any pre-existing damage.


Brad "Diva": 2004 Mazda 6s 5-door, Volcanic Red Rex: 1988 Mazda RX-7 Vert, Harbor Blue.