How to Negotiate and Settle a Car Total Loss

The car total loss process starts at the accident scene. After that, the insurance company must inspect your vehicle and determine whether the damage was substantial enough to declare a complete loss.
Most insurance companies will want to inspect the vehicles themselves. In most cases, insurance companies have approved body shops to write estimates. These shops usually write estimates and receive payment from the insurance company based on that estimate.
However, when there is potential for a car total loss, most insurance companies want their own insurance adjuster to inspect the vehicle.
The reason for this is the conflict of interest that arises from the arrangement between the insurance company and the body shop. Body shops are in the business of fixing cars. They have a vested interest in quoting the repairs so the car can be fixed and not declare it a car total loss. Therefore, it will be an adjuster inspecting and dealing with the negotiation.
Below are the best steps you should follow to assure a fair settlement and estimate of your damages:

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Time
• Estimate of repair
• Preliminary evaluation of your car
• Your bank loan information

1. Wait a few days – but not too many. It takes two to three business days for a body shop to do a repair estimate. If the claim adjuster or the field representative has to inspect and write their own estimate (which usually happened), then you will be waiting three to five more days to for an adjuster to get to the location of your car.

2. Ask the adjuster for the preliminary value of your car. Before the adjuster goes out and inspect, she/he will submit all pertinent information about your car (year, make, model, and mileage) to a third party company. This company usually is CCC Information Services Group, Inc. CCC will do a preliminary report to determine what the fair value of your car is so the adjuster knows what the insurance company would be looking to if there is a total loss.

3. Check your state law for total loss thresholds. Depending on your state law and the specific insurance company, there will be a car total loss when the insurance company believes that the cost to fix the car reaches 70%, 80%, or even 90% of its total value. It is always a good idea to ask the adjuster what the threshold is. What is the percentage of value they look at to determine a total loss?

4. Look at the estimate by the car total loss adjuster. This individual will be looking at the condition of your car. They will note how “clean” the vehicle is, what is the exact mileage, and what equipment and options the car has. All of this information will be reflected in the final evaluation of the vehicle. Make sure it is accurate. If your car is in “perfect condition,” make sure the adjuster notes that.

5. Ask for the adjuster’s initial report. After the adjuster’s initial inspection and report, he/she will submit that repot to CCC. CCC will send a final report showing comparative prices for the vehicles in your local market. They will establish what the fair market value of the car is and what a fair offer of settlement would be.

6. Visit http://www.auto-insurance-claim-advice.com/car-total-loss-2.html. to learn how to correct and dispute that report.

7. Make sure a letter of Guarantee is send out. If you have a loan, then the insurance adjuster will request a letter from the bank (a letter of Guarantee). This letter is an agreement between the bank and the insurance company in which for the exchange in payment of x amount, the bank will release the title of the car to the insurance company directly. This process usually takes four to five days.

8. Double check that you are not upside down on your loan. If the amount you owe for the car is less than what the insurance company will pay for the car total loss, then the insurance company will pay the loan amount and then issue you a second check directly. If the loan amount is higher than what the car total loss offer, then you will be upside down your loan. You will be required to continue making payments even though the car title will be transferred to the insurance company.

9. Once you receive payment for your loss, you will be able to go out and get another car.

Tips & Warnings

• If things do not make sense, ask your adjuster. They have a duty to explain everything to you so it is clear
• Remember, this is a negotiation. There is no final offer until you accept it
• Talk to a local attorney before you make any decisions on your claim

Resources

• Total Loss eBook
• Total Loss Tips
• Car Accident Help
• Find a Lawyer