| There is nothing more frustrating after an accident | | | | company is willing to pay for your totaled vehicle, |
| than having to deal with the insurance company to | | | | you may follow these steps: |
| have your vehicle repaired. If the insurance company | | | | - Do not cash the check. First, it is important that |
| finds your vehicle a total loss, then you may be in for | | | | you do not cash any check the insurance company |
| even more difficult times as you haggle over the final | | | | sends you for the total loss of your vehicle if you |
| price. In many cases, the insurance company will | | | | want to challenge the amount. By depositing or |
| make its offer appear to be a take-it-or-leave-it | | | | cashing the check, you are accepting the settlement |
| proposition, but this is not always true. | | | | offer by the insurance company and may not be able |
| Below you will find information on what happens | | | | to seek any additional compensation. |
| when your vehicle is declared a total loss by your | | | | - Get a copy of the market evaluation. Second, once |
| insurer, and what you can do to fight an offer you | | | | you receive the actual total value determination from |
| believe is unfair. Insurance companies are required by | | | | the insurance adjuster, ask the adjuster for a copy |
| law to handle your claim in good faith and fair dealing. | | | | of the valuation report. This report should have |
| If your insurance company breaches these important | | | | specific information about the comparable (or "comp") |
| fiduciary duties, you may be entitled to bring a bad | | | | vehicles they used in valuing your car. Check to see |
| faith claim against it. For more information, contact an | | | | how far away these vehicles are located. Remember, |
| experienced attorney. | | | | the valuation is supposed to be based on your local |
| What Is a "Total Loss"? | | | | market. If the comps are located more than 50 miles |
| Your vehicle will be declared a total loss by your | | | | away from your home, you have a good argument |
| insurance company if the cost to repair the vehicle | | | | that they are not in your local market and should not |
| exceeds the actual total value of the vehicle right | | | | be used in the valuation. |
| before the accident. Generally this means that if it | | | | - Read the report carefully. Additionally, when you |
| costs at least 80% of the vehicle's worth to repair it, | | | | are looking at the valuation report, make sure that |
| then the insurer is not going to pay for the repairs, | | | | the information provided about your vehicle is |
| but instead is going to give you a check for what it | | | | accurate and complete. For example, does the report |
| believes the vehicle is worth. You do not have any | | | | list all of the available features and optional equipment |
| say whether or not the insurance company declares | | | | your vehicle has? Does it note the mileage of your |
| your car a total loss. | | | | car? What does it list as the condition of your car? |
| How Does the Insurance Company Make This | | | | You also can ask to see the claims adjuster's initial |
| Determination? | | | | report and check to see if it has any inaccuracies |
| More often than not, what you believe to be the | | | | about your vehicle. |
| actual total value of your car will not match the | | | | - Seek an appraisal. If the insurance company still is |
| insurance company's offer. The insurance company | | | | not willing to budge on its offer (which is not |
| does not use the Kelley Blue Book to determine the | | | | uncommon) and you think the value is absurdly low, |
| value of your vehicle. Instead, the insurer uses | | | | you can seek an independent appraisal of your |
| another third-party company to complete the | | | | vehicle's worth. In your insurance contract, you |
| valuation of the car. | | | | should have the "right of appraisal." But if you want |
| After the insurance adjuster makes a visual | | | | to choose your own appraiser, then you will have to |
| inspection of your vehicle, he or she generally then | | | | pay for it out of pocket, which can cost between |
| will input data about your vehicle into a computer | | | | $300 and $500. If you still want the appraisal but are |
| system developed by the third party (one of the | | | | willing to let the insurance company choose the |
| most commonly used third parties is CCC Information | | | | appraiser, then your insurer will have to pay the |
| Services Group). This information includes basic data, | | | | appraisal costs. Beware, however, that the insurance |
| like the color, make, model and year of your vehicle | | | | company's own appraiser may not be any more |
| and available equipment and options. But it also | | | | impartial than the third party that handled your original |
| includes subjective information, like the condition of | | | | valuation. |
| your car. Simply imputing that your car is in one | | | | - Contact an attorney. If you still are not getting |
| category poorer condition than it is (such as "fair" | | | | anywhere with the insurance company, you should |
| instead of "good") can make a big difference in the | | | | contact an experienced attorney. You may be able |
| overall value of your car. | | | | to go through negotiation or arbitration to settle the |
| The third-party valuation of your vehicle is based on | | | | dispute or, as a last recourse, litigation. |
| comparable vehicles in your local market. This may be | | | | All of these options will increase the amount of time |
| calculated by collecting information from local used | | | | you are without a car or a settlement check, which |
| car dealerships and online and/or newspaper | | | | for some people simply is not realistic, especially if |
| advertisements. | | | | the difference between the insurance company's |
| Can I Challenge a Total Loss? | | | | offer and what you believe your car is worth is only |
| You can always challenge the insurance adjuster's | | | | a few hundred dollars. Even so, the system for |
| determination of the actual value of your vehicle. It is | | | | valuing a total loss is weighted against the |
| just a matter of how much time and money it is | | | | policyholder, in favor of saving the insurance |
| worth it to you to do so - a factor that the | | | | company money. The insurance company, however, |
| insurance company is counting on to dissuade you | | | | still owes contractual and state legal obligations to |
| from challenging its determination of the value of | | | | you to settle your claim fairly and in a reasonable |
| your vehicle. | | | | amount of time. Legal action can be taken against |
| If you want to challenge the amount the insurance | | | | the insurer for failing to fulfill these duties. |