Rear-Ended by USAA Driver… What Happens Now?

Hey! I got rear-ended by someone insured with USAA. I drive a 2022 Lexus NX 350 Luxury edition, fully loaded with all the available packages. The shop I took it to called me the next day and said it looks like a total loss.

Does this mean USAA is going to pay the $36,000 it’s worth? I don’t see how damage from a rear-end hit could cost more than $20,000 to fix. No airbags deployed, and the only alert I got was a collision warning.

Anyone here know how insurance works in Texas?

I had a 2011 Mustang special edition that got totaled last year, and I barely got anything for it. The shop explained it like this:

  • Modern cars have a lot of plastic, and you can’t fix plastic—you just replace it.
  • Your car probably has a ton of sensors and electronics. If they think anything near the damaged area needs replacing, the cost adds up fast.
  • Some cars have lots of little parts that seem cheap on their own but get expensive when you factor in labor.
  • Car values are still nowhere near what cars cost. You might have paid a lot for it, but insurance looks at the market value, which can be lower.
  • They’ll check Kelley Blue Book or similar to find the lowest reasonable value.

It sucks, but that’s just how insurance works these days.

Is that $36,000 the retail price? Insurance won’t pay retail value.

True said:
Is that $36,000 the retail price? Insurance won’t pay retail value.

Good question. I get my car serviced every 5,000 miles, and CARFAX sends me updates on my car’s value. Last month, they said it was worth $36,850. Is there a difference?

@Arin
I used to work in insurance, though it’s been a while. They’ll pay the market value, not what a Lexus dealership would sell it for.

@Arin
If the car is totaled or stolen, USAA usually pays the value of a similar car, adjusted for mileage. I had a stolen vehicle in 2023, and their valuation was actually better than I expected.

@Arin
Check Autotrader or TrueCar for similar cars—same make, model, trim, and as close to your mileage as possible. Keep your search within 50 miles. That’s what insurance will look at. Regular maintenance won’t increase the value much, no matter what CARFAX says.

I had an Aviator that got totaled when I was rear-ended. They gave me the actual cash value and provided a list of comparable cars, like a real estate comp sheet. They did a good job finding similar replacements.

Make sure to document all your trim levels and extras so they compare it accurately. In California, they told me they total a car when repair costs plus salvage value exceed the car’s worth. Might be similar in Texas. Good luck.

Lexus holds its value well. You’ll probably get a fair offer.

I have USAA, and they were pretty generous when my car was totaled in a hailstorm in North Texas last year. Gap insurance covered the $2,500 I still owed after their payout. Hopefully, you’ll get a good deal too if they decide to total it.

Texas law says the total loss threshold is 100%. That means the repair cost has to be more than the car’s actual cash value for it to be considered totaled. They base ACV on the retail value at the time of the accident.

@Zaid
That’s when they’re legally required to total it, but insurance companies can choose to total it for less if they want.

Winslow said:
@Zaid
That’s when they’re legally required to total it, but insurance companies can choose to total it for less if they want.

True, but if they do, they still have to pay you the actual cash value.

If you replace your NX with one built in Ontario, there might be a 25% tariff. Something to keep in mind.

You should file with your insurance—they’re the ones who will deal with USAA for you. Insurance usually pays the book value unless you have extra coverage for more. Be ready to negotiate because they’ll probably offer you the lower end of the range.

@Giovanni
They don’t use Blue Book.