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Which Insurance Companies Pay The Best Value For Totaled Cars

If your car is deemed a total loss after being in an accident, the insurance company will likely payout the fair market value for the vehicle. However, not all companies pay the same amount for totaled cars. Here, we’ll compare the payout amounts from five different insurance companies. We’ll also discuss what factors can affect the payout amount.

Liberty Mutual

Liberty Mutual is an insurance company that offers a variety of insurance products, including car insurance. Liberty Mutual car insurance is designed to provide protection for your vehicle in the event of an accident, and it offers a variety of benefits, including 24-hour roadside assistance and a rental car reimbursement program.

Liberty Mutual also offers a “total loss” coverage option, which pays out the full value of your car if it is totaled in an accident. This is in contrast to other insurance companies that may only pay out a portion of the value of your car if it is totaled. As such, liberty mutual’s “total loss” coverage option provides greater protection for your vehicle.


Progressive offers totaled car insurance payouts to help you get back on the road after an accident. If your car is totaled in an accident, Progressive will pay for a new car, up to the actual cash value of your vehicle, minus your deductible.

If you have gap insurance through Progressive, Progressive will also pay off your loan or lease balance.

State Farm

If you’re a policyholder with State Farm and you’ve had your car totaled in an accident, you may be wondering how the insurance company calculates payouts. In general, State Farm will reimburse you for the actual cash value of your vehicle, minus any deductibles that may apply.

The actual cash value takes into account the year, make, and model of your car, as well as its mileage and overall condition. To get an estimate of your car’s actual cash value, you can use online tools like Kelley Blue Book or Edmunds.

Once you have an estimate, you can start negotiating with State Farm to get the best possible payout for your totaled car.


When a car is totaled in an accident, Allstate will pay out the value of the car to the policyholder.

However, the insurance company will only pay out up to the limit of the policy. For example, if a policyholder has a $50,000 limit on their Allstate car insurance policy and their car is totaled in an accident, Allstate will pay out $50,000 to the policyholder. The policyholder will then be responsible for paying any remaining balance on the loan or lease of the car.

If the car is not leased or financed, the policyholder will receive a check for the full value of the car. Allstate will also pay for any tow and storage fees associated with the accident.

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USAA is a large provider of car insurance, and it offers a variety of different payouts for totaled cars. USAA will pay out the full market value of the car if it is less than one year old, and it will also pay out the full Replacement Cost Value if the car is more than one year old.

USAA also offers a diminished value payout for totaled cars, which is based on the difference between the car’s pre-accident value and its post-accident value.

USAA will also provide a rental car while the policyholder’s car is being repaired. USAA’s payouts for totaled cars are among the most generous in the industry.

Which Is Best For You?

USAA, Liberty Mutual, Progressive, State Farm, and Allstate are all great insurance companies that offer coverage for totaled cars. Let’s quickly compare some numbers.

  • USAA and Liberty Mutual both had the highest average payout for totaled cars in 2020, at $22,512 and $21,018 respectively.
  • Progressive and Allstate had the next highest average payouts, at $20,766 and $20,531.
  • State Farm had the lowest average payout for totaled cars, at $18,426.

However, it’s important to keep in mind that the value for totaled cars can vary depending on a number of factors, including the make and model of the car, the age of the driver, the location of the accident, and more. As such, it’s always best to compare quotes from multiple insurers before making a decision.

Ultimately, the best insurance provider for you will depend largely on your unique circumstances. This is why it is very important to take the time to compare quotes from insurers before making a decision.

Factors That Affect The Payout Amount

When a vehicle is totaled in an accident, the insurance company will determine the payout amount based on a number of factors.

  • Actual cash value (ACV) of the vehicle. This is what the vehicle is worth on the open market.
  • Cost of repairs. If the cost of repairs exceeds the ACV, then the insurance company will declare the vehicle a total loss and pay out the ACV to the policyholder.
  • Salvage value. This is what the insurance company can get for selling the salvageable parts of the vehicle.
  • State law. Some states have minimum compensation requirements for totaled vehicles.

Understanding these four factors can help you to negotiate a fair payout from your insurance company if your vehicle is ever totaled in an accident.

You now know which insurance companies pay the best value for totaled cars. If you’re ever in an accident, it’s important to be prepared and know what to do. Make sure you keep this information in mind so you can get the most money for your car if it’s ever totaled.

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