Formula
Payout = ACV (KBB / Edmunds / NADA average) − deductible + sales tax on replacement (Texas TIC 542).
How to use it
- Look up your vehicle's pre-loss value on KBB, Edmunds, and NADA
- Take the average
- Subtract your deductible
- Add Texas sales tax credit on a replacement vehicle
Worked example
ACV avg $14,800 − $500 deductible + $925 sales tax = $15,225 payout.
Frequently asked questions
Can I dispute a low total-loss offer?
Yes — get independent appraisals and invoke the appraisal clause.
Does Texas require sales tax in a total loss?
Yes — Texas Insurance Code 542 requires sales tax on replacement.
This calculator is for educational estimation only. For a binding quote, talk to a licensed Texas insurance agent or request a free quote.