Vehicle EconomicsTotal Loss Settlement Adequacy Calculator
Does your total-loss settlement actually cover your loan payoff and a real replacement vehicle?
Why this comes up
A total-loss settlement is stressful precisely because it arrives with a loan still attached and a replacement still needed. This engine checks the settlement against both obligations at once, whether it clears your loan payoff, and whether what's left actually buys a comparable replacement, rather than looking at the settlement number alone.
How we calculated this
We treat the settlement as your market value and the loan payoff as, well, the payoff, the same equity math this site uses everywhere: negative equity is how far the settlement falls short of the payoff. Separately, we compare the settlement against your stated replacement cost to size any additional gap.
Worked example, using this page's own defaults ($14,000 settlement, $16,500 payoff, $17,000 replacement cost): run the calculator above to see the exact shortfall on both the loan and the replacement.
What this means
- If your settlement falls short of payoff, ask your insurer or lender about GAP coverage before assuming you owe the difference out of pocket.
- A settlement offer is often negotiable, comparable listings for your exact trim and mileage are the strongest leverage.
- If you still owe money after the settlement, see Negative Equity Rollover to understand what rolling that gap into a new loan costs.
Limitations
This is not a claims-adjustment tool and does not verify whether a specific settlement offer is fair; it checks the numbers you already have. SeeMethodology.
Methodology
This engine uses Vehicle Economics' equity and depreciation projection model to size the settlement's shortfall against your loan payoff. See Methodology for the full detail.