How to Negotiate a Total Loss Insurance Claim

When your car has been totaled, you need to agree with your insurance company on what your old totaled car is worth. Even though you might have good coverage, you probably won't be driving a brand new car soon. Here are the steps you should take to negotiate a total loss insurance claim.

Difficulty: Moderately Easy

Instructions

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

Tips & Warnings

• Find out the actual cash value of your car. That's what it would cost to buy a similar car including the taxes and fees. More and more insurance companies are relying on computers to calculate the final amount they offer you. Adjusters make an initial assessment, and then enter what they've learned into a computer program that matches their input to a database, usually resulting in a lower settlement.
• Remember that claims adjusters work for the insurance company and are trained to negotiate in their favor.

[pegeorge]

on 6/4/2009 Dear Sir/Madam,Firstly, I must thank you for giving policy holders the opportunity to express their views on difficulties faced by certain insurance companies.Please clarify the following for me.Comprehensive Motor Insurance Cover1.In the event of a very bad accident does the policy holder have the right to decide whether he will go for a repair or go for a total loss?2.Can the insurance company confirm a total loss verbally to the policy holder and later change to a repair to their convenience.3.In the case of item 2, can the policy holder continue insisting on a total loss?4.Is there a period of time the insurance company can take to make a final decision whether to repair or to rule as total loss? 5.If the insurance company decides to do the repair themselves, can the policy holder request for a fitness certification form agents of the vehicleThank you very much for your time.P E ...

[John1918]

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]

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]

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.