How to Negotiate a Car Accident Insurance Claim
Negotiating an auto claim after a car accident can be a time-consuming experience. Owners often feel their vehicles are worth more than what is offered by the insurance adjuster. Knowing how to properly prepare for a situation like this can net you more cash and result in quicker claims settlement.
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Instructions
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Resist being greedy. Understand that automobiles are replaced on an "actual cash value basis." Actual cash value defined by Progressive.com is "the market value of the vehicle taking into consideration pre-loss condition, options and mileage." Remember it's the insurance company's job to restore the owner to the same financial position he was in before the accident. It is not the insurance company's job to provide you with a new vehicle.
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Research the value of similar vehicles with similar mileage within a 100-mile radius. This information can be found on web sites like edmunds.com or kbb.com. You also can find prices in local newspapers and Auto Trader magazines. Make copies of all the similar vehicles in your area and their asking prices. Take the average price, and use it as a negotiating tool to increase your car's actual cash value. Keep copies of your research on hand to show your insurance adjuster.
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Show receipts for any recent replacement items or upgrades such as new tires or a new sound system.
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Remember, you are not required to accept the first offer that the insurance company makes. Be prepared, though, for a little pressure. If the insurance company has provided you with a rental vehicle, it can refuse to continue the rental coverage, in many cases within two days, after making the offer.
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Tips & Warnings
If your vehicle is repairable, obtain multiple quotes. With just two quotes, the insurance company will generally pay for repairs based on the lowest estimate.
