Automobile Insurance — Total Loss
An automobile insurance policy is not a replacement policy, rather it is an actual cash worth value policy.
The insurance company is obligated to pay you the amount your car is worth on the day of the accident. This amount is usually determined by contacting local auto dealers and asking for a market survey.
If you disagree with their offer, you may wish to do your own market survey, and, if the amounts are drastically different, you should be able to negotiate with the adjuster.