Why is my insurance payout from Progressive lower than the value of my new Chevy Trax?

I purchased a new Chevy Trax for $27,000, including the dealership's warranty. I was in an accident and the Trax was deemed a total loss. Progressive's assessment of my vehicle is $20,250, and I still owe $26,000. Why is the assessment so much lower than what I paid?

Answer provided by
Emily Maracle
Answered on May 07, 2021
“When a car insurance company looks at the value of a vehicle, they include depreciation. New cars can depreciate up to 35% in the first year.
Since you currently owe more on your loan than your vehicle is worth, you should see if you have gap insurance with your lender or dealership. This would cover the difference between what you owe on your loan and the depreciated value of your vehicle.
You can also see if you’re able to get a refund on the warranty with the dealership.
Beyond this, you should ask Progressive for a breakdown of the assessment. You’ll be able to review how the adjuster priced your vehicle, and you may be able to negotiate a higher payout.
If Progressive is actually the other party’s insurance company, you can also reach out to your own carrier for an assessment.

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