Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-52 - FAIR AND EQUITABLE SETTLEMENT OF FIRST PARTY PROPERTY DAMAGE CLAIMS › Rule 120-2-52-.06 - Total Loss Vehicle Claims

Current through Rules and Regulations filed through June 27, 2024
If the insurer determines the insured vehicle to be a total
				  loss, and the insurance policy provides for the adjustment and settlement of
				  first party vehicle claims on the basis of actual cash value or replacement,
				  the insurer may elect to pay a cash equivalent settlement or replace the
				  insured vehicle. The insurer shall use one of the following methods:
(a) Cash Equivalent Method. The insurer may
				elect to pay a cash equivalent settlement based upon the actual cost less any
				deductible provided in the policy, to purchase a comparable automobile by the
				same manufacturer, same model year, with similar body style, similar options
				and mileage, including all applicable taxes, license fees and other fees
				incident to the transfer of ownership of a comparable automobile. The amount
				payable on taxes, license fees, and transfer fees shall be limited to the
				amount that would have been paid on the totaled, insured vehicle at the time of
				settlement. Such cost shall be based on one or more of the following methods:
1. The cost of two or more comparable
				automobiles in the local market area, defined in this subsection as fifty (50)
				miles from the county seat where the insured vehicle was principally garaged,
				when comparable automobiles are available or were available within the last
				thirty (30) days to consumers in the local market area. These sources may
				include dealer's sales price, any established printed automobile sales
				publication or newspaper.
2. The
				cost of two (2) or more comparable automobiles in areas proximate to the local
				market area defined in this subsection as 100 miles from the county seat where
				the insured vehicle was principally garaged, including the closest major
				metropolitan area within or without the state, that are available or were
				available within the last thirty (30) days to consumers when comparable
				automobiles are not available in subparagraph (a)1. above. These sources shall
				include the same as in subparagraph (a)1. above.
3. One of two or more quotations obtained by
				the insurer from two or more licensed dealers located within the local market
				area defined in this subparagraph as 50 miles from the county seat where the
				insured vehicle was principally garaged, when the cost of comparable
				automobiles are not available in subparagraphs (a)1. and 2. above.
4. Any source for determining statistically
				valid fair market values that meet all of the following criteria which may be
				in electronic or printed format:
(i) The
				source shall give primary consideration to the values of vehicles in the local
				market area, or may consider data on vehicles outside the area when comparable
				vehicles have not been available for data collection in the local market
				area.
(ii) The source's database
				shall produce values for at least 85% of all makes and models for at least the
				last fifteen (15) model years, taking into account the values of all major
				options for such vehicles.
(iii)
				The source shall produce fair market values based on current data available
				from the area surrounding the location where the insured vehicle was
				principally garaged or a necessary expansion of parameters (such as time and
				area) to assure statistical validity.