How To Get The Most Money From Insurance For A Totaled Car

What Is a Total Loss?

If your insurance company declares your car totaled, or a total loss, after an accident, it has determined the damage is beyond reasonable repair. Instead of paying to fix the damage, your insurer wants to pay you the market value of your car, or actual cash value (ACV).

The insurer assigns an adjuster once you report the damage from your accident, and the adjuster determines whether the car is a total loss. It varies by insurance company, but some use a total loss threshold or total loss formula to decide when to total a vehicle. This formula differs from state to state. Then, the insurance company puts an ACV on your car for the payout.

Verifying That You Have the Right Coverage

You’ll want to first consider whether you have the insurance coverage you need. Full coverage auto insurance, which includes collision and comprehensive insurance, can pay to repair damage to your car.

No state requires you to carry collision and comprehensive insurance, although most lenders and leaseholders often require it. If you don’t have collision and comprehensive insurance and your vehicle is damaged, you could end up paying the full tab for your repairs.

Also, guaranteed asset protection (GAP) insurance can help you pay off an auto loan if you owe more than the market value your insurer pays you for your totaled car.

How to Dispute Total Loss Value

You don’t have to accept the market value your insurance company wants to pay after a total loss. However, if you believe your car is worth more, you have to prove it. Here are several tips on how to get the most money from insurance for a totaled car by disputing the total loss value.

Ask for a Copy of the Valuation Report

Getting the valuation report and the documentation your insurer compiled to come up with a market value on your car can help set the table for your negotiations with the insurance company.

Conduct Your Research

Research local sales of vehicles comparable to yours. You can get written values for sold vehicles from local car dealers and you can search online. Look at factors such as mileage and special features you may have added to your car.

Compile Your Documents

Pull together any documentation you have to support a higher valuation of your car. This could include maintenance records, receipts for upgrades to your vehicle and photos showing the condition of your car before the accident.

Dispute the Condition Adjustment

With a condition adjustment, total loss values can be directly impacted, reducing your overall payout. Review the condition adjustment from your insurance adjuster closely and dispute any elements you believe are wrong.

Develop a Counteroffer

Valuation websites, such as Kelley Blue Book or Edmunds, or a qualified mechanic can help you estimate the value of your car. You also can have your car appraised to prepare a counteroffer for the insurance company.

Ask for an In-Person Appraisal

Insurance companies often assign a value based on the make and model of your vehicle and information in their databases. You can request your insurer to do an in-person appraisal to assess the value of your car.

How to Get More for Your Total Loss Vehicle Settlement

You can start researching and compiling documents before you even receive a settlement offer from your insurance company. If you’re unhappy with the offer when it does come, you don’t have to accept it.

You can reject it and enter into negotiations with the adjuster, using your records and value estimates to seek more money from your insurer.

How to Negotiate Total Loss Payout

Insurance companies have experts with extensive experience and knowledge about car insurance at their disposal. Even after preparing records, disputing reports and preparing a counteroffer, you may want to hire an auto lawyer.

An attorney experienced with dealing with insurance companies can negotiate for you and provide legal guidance.

Let ConsumerShield Provide You With Expert Guidance

Equipping yourself with documentation, questioning the insurance company’s valuation and preparing a counteroffer can give you a chance at getting an insurer to increase your payout. But dealing with an accident is traumatic in itself. Fighting an insurance company to get what you believe you’re due may not be something you want to take on alone.

At ConsumerShield, we have professionals experienced in insurance and law and enjoy sharing our knowledge to empower consumers. Get in touch with us today to find out how we can help you.