How does the insurance company calculate the value of a car in a total loss settlement in Ontario?

by MB
(Ontario, Canada)

My adjuster offered me a settlement. I wanted to make sure it was accurate and fair so I asked her to explain how the vehicle valuation was done.


All she did was send me 2 ads of a car similar to mine and one was from out of town (even though there were several similar cars for sale in my immediate area). These ads had numbers written all over deducting and adding random figures for different features. She ended up with a total at the bottom. When i asked her what these numbers meant she was very unclear.

I thought insurance companies use a software to give an objective valuation of the car.

Anyways then I sent in ads from my area and within 1 hour she sent me a higher offer. I still don't know if this is the acv of my car and i know if i ask her she will do the same thing (send me back ads with a bunch of figures on them that I cannot understand).

Do I need to escalate this to arbitration?

How to Calculate the Value of a Car in a Total Loss


Hi there,

Thanks for your question. Sorry to hear your car was written off.

Your question is from quite some time ago, sorry for the delay. by now you should have reached a settlement.

You did the right thing by showing cars that were listed higher than the offer you received. many people would have just accepted the first offer. Most insurers use a blue book with car values as a basis for settling claims. They factor in if your mileage was high or low and any recent improvements to the car or signs of un repaired damage.

Please be sure to discuss this further with a licensed insurance representative.

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This site is general in nature and there may be errors or ommissions

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