What is a market value settlement?

A market value settlement is a type of insurance claim settlement used when settling vehicle damage claims in the state of Florida. It is commonly used for cases where the repair costs exceed the depreciated value of the vehicle. In this type of settlement, the insurance company pays the policyholder the current fair market value of the vehicle, minus the deductible, regardless of the vehicle’s age or condition. The fair market value is what a buyer is willing to pay for the vehicle in the same condition as when the accident occurred. This is different from the actual cash value of the vehicle which accounts for depreciation due to age and condition. Insurance companies use various sources to calculate the fair market value of a vehicle, such as third-party information services, car valuation books, and other data sources. The policyholder can use the funds to purchase a new vehicle or use the funds as they wish. The downside of a market value settlement is that it doesn’t take into account any of the policyholder’s title history or vehicle customization, so they may receive a settlement that’s lower than what they expected. In summary, a market value settlement is a type of insurance claim settlement used in Florida used when the repair costs exceed the depreciated value of the vehicle. It involves the insurance company paying the policyholder the current fair market value of the vehicle, minus the deductible, regardless of the vehicle’s age or condition.

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What is a market value settlement?

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