Last updated 2023-11-30

Calculate the co-insurance amount for a declared value vehicle

Steps on calculating the co-insurance amount for a declared value vehicle.

Prerequisites

ClaimCenter has automatically indicated on a claim's co-insurance tab that a declared value policy is in effect.

When this applies

When a declared value policy is in effect, and the value appears inaccurate against the described vehicle, an estimator or appraiser must determine whether co-insurance applies. When it does, the customer and repair facility are advised of any co-insurance, if applicable.

The estimator or appraiser must use the co-insurance calculator to determine applicable co-insurance

percentage amount before starting repairs, and
dollar amount after repairs are completed.

Note: Co-insurance only applies to a customer accessing their Own Damage coverage, and not on claims where Basic Vehicle Damage coverage is being accessed.

Procedure

Review the declared value amount against the vehicle.

Note: For calculating the declared value, refer to the topic, Co-insurance calculation.

If the declared value ...	Then ...
appears accurate	the co-insurance calculator is not required.
does not appear accurate	establish the actual cash value (ACV) add the ACV amount in the co-insurance calculator, and proceed to step 2.

Update the claim by
- adding the total cost of repairs into the co-insurance calculator
- adding the deductible amount, if applicable, and
- updating the co-insurance calculator.
Provide the customer and repair facility, the percentage and dollar amounts of co-insurance the customer is responsible for on the claim, after the vehicle repairs are completed.
Add a note to the claim, documenting the information provided to the customer and the repair facility.