How to Settle Your Total Loss

Being in a car accident can be a devastating experience, especially if your car is considered a total loss. Totaled cars are ones in which the value to repair them exceeds the actual value of the car - or - cars that, constructively, aren't safe to repair. Regardless of which category your vehicle falls into, one thing is for sure, you'll have to settle the total with an insurance adjuster. As a result, you'll need to understand the process and what to do. Here's a bit of help.

Difficulty: Moderate

Instructions

Things You'll Need:

• Pen and paper
• Newspaper
• Internet
• Elbow Grease

1. Decide if you want to keep your car.
   
   Before the insurance adjuster offers you a value on your totaled car, he will want to know if you plan on keeping the salvage. The salvage is the state of your car as it is right after the accident. If you don't want to go through the process of disposing of parts or selling a totaled car, it's best to give it up to the insurance company. They will add the value onto your total loss offer. On the other hand, if you decide to keep your car, remember that you will have to dispose of it and the value of the salvage will be deducted off of the offer of your totaled car.

2. Write down the specifics of your car.
   
   On paper, write down the specifics of your car. It should include the year, mileage and accessories like CD players, AC, automatic windows, etc. Also, take this time to gather any receipts of add ons over the past year.

3. Search the internet and other newspapers for "like" cars.
   
   Like cars are ones that are similar to yours. They should be ones being sold in your zip code with similar years and specs. Use this information to get a value for your vehicle. Understand that private owners tend to sell their vehicles at a deal while car dealerships sell at a higher price to cover overhead. So, your car's value should be somewhere in the middle or towards the cost of private sells.

4. Negotiate the value of your car.
   
   Your insurance adjuster will call you after they calculate a value of your car. Before you accept it, go over everything. Make sure they have the specifics of your car right. These things are what actually drive the cost. Blue books aren't really used by the majority of insurance companies because as soon as they are published, the values are obsolete. Keep this in mind just in case you want to use it as a bargaining chip.

5. Agree on a value of your car.
   
   With all of your information, you should be able to come to an agreement on the value of your car. If your insurance adjuster is way off, you can use your research to support your value. This means you may have to fax or mail in copies of receipts. Don't let a low offer upset you to the point that you get too emotional and delay an agreement. Remember, agreements are often compromises that both parties settle on. So don't get stuck.

6. Send in the necessary paperwork.
   
   After you agree on a total loss value, their will paperwork that the insurance company wants you to sign. Lots of time it has to do with the DMV and release of your car (if you give it to them). So understand the sooner you complete and return it, the sooner you get a check and move on with life.

7. Receive and cash your check.
   
   Now that you've completed the process, all you need to do is receive and cash your check. You should get a check in the mail within a week or two after you've sent your signed paperwork back. If you haven't gotten anything, call the insurance company.

Tips & Warnings

• Get an "approved" extension on a rental car if you can't turn it in on time.
• Don't get caught up in sentimental values of a car. Unfortunately, they only add value to the car in your eyes.
• Try to keep your peace throughout the process in order to make it less taxing on yourself.

Resources

• Link to article