By
eHow Personal Finance Editor
Difficulty: Moderately Easy
Step1
Know the definition of total loss. Total loss means that your car can't be repaired or that it's worth less than the cost of repairs.
Step2
Be aware that your idea of fair value and your insurer's idea may differ drastically. Remember that you have the right to a fair settlement and the right to negotiate to get one. A fair settlement is receiving the amount you'll need to by a like car, or a car of the same or similar model and the same year and condition as your old one.
Step3
Demand a written notice of what you have to do to reopen your claim if you can't find a like car with the settlement amount within 35 days of that settlement. This also holds true if you find a replacement car, but it costs more than what the insurance company gave you.
Step4
Keep accurate records of any past maintenance and repairs, including the cost. Although you won't see a one-for-one exchange, those repairs will factor into the actual cash value calculation.
Step5
Hire an independent appraiser to work with the insurance company's appraiser if you don't agree with their offer. Check the yellow pages for names and numbers.
Step6
Seek professional help if you still can't agree on the settlement. You have two choices: an independent arbitrator or an attorney. Both courses of action mean you'll have extra expenses. Before entering into arbitration or suing, make sure it's worth the extra cost.
Comments
John1918 said
on 7/24/2008 If a person hits a parked hay wagon and dose saver damage to running gear and Rack and I had just paid 3800.00 for wagon and was unable to finish loading hay from field due to damages so lost hay and lost time to get hay in cause wagon is down what are my right to this type of loss
iknowalot said
on 6/13/2008 I am a total loss adjuster for a large insurance company, and am actually laughing at the steps used to negotiate your settlement. There is truth to some of the steps, but ultimately, your policy may decide what type of settlement you may receive (ACV vs. replacement). What Brules said is correct, we pay what is owned, no more, no less. The condition of your vehicle (pre accident) and the mileage of your vehicle play a huge role - if you didnt take car of your car, dont look to NADA or Kelly Blue Book - this assumes your car is in "Excellent" or "Dealer Ready" condition. The ACV is actually derived from what a similar vehicle in the market area you live in has sold for. Most "Book Values" include dealer costs for doing business, commissions, etc.. Insurance companies will not pay this, and this is also why cars drop in value the second you drive them off the lot - somebody else wil
Brules said
on 2/21/2008 Remember that the insurance adjusters salary has nothing to do with how much they pay on your claim. Most insurance companies tell their employees to pay the customer what is owed, no more & no less.