In most cases, insurers are going to use Actual Cash Value (ACV) to estimate car value. Nearly all auto insurance providers utilize industry formulas to figure out automobile Actual Cash Values, meaning it is difficult to predict just what number they will come up with if and when your vehicle is totaled.
Your insurance company will consider your vehicle's age, mileage, and any previous claims you have made and the consequence of weeks or years of regular wear and tear on your car or truck. They will also probably look at similar vehicles available in your zip code with the same make, design, and other similar features to find an estimate of how much your car could have been worth before it had been stolen or wrecked.
The Actual Cash Value your auto insurance carrier comes up with may be about just what you believe that your car was worth, or you might even be paid out more than you anticipated, which is always a great surprise.
But when the Actual Cash Value your insurance company decides for your auto is lower than what you think it was worth, you do have some ability to dispute their evaluation.