If a car is totaled how does the insurance company come up with an amount for the payoff?

theyre supposed to have a licensed appraiser inspect the damage, estimate the repair costs, determine ACV (actual cash value) and pay you the value minus anyreasonable and customary costs for items requiring repair which are not accident related but diminish the value of the vehicle . For example if the same vehicle in good condition (no damage ) is worth $6000 , and your vehicle has $ 500 worth of rust repairs and bald tires which would cost $500 neitherof which were related to for example a collision in which you were rear ended, the company would be obliged to pay you $5000 minus any deductable . The value of your car is determined by make model year and condition . This value is taken by blue book values and or market prices of the vehicle involved.I always require a written report from the appraiser and review them carefully as the appraisers are on the side of the ins co not you. If the valuesare off I would consider an independent appraiser and or attorney and sue the ins company for the difference and the legal/appraiser costs