How to Dispute With an Insurance Company Over Value of a Total Loss Auto

You can bargain from a position of strength.

The entire purpose of having insurance is to protect you in the event of a loss. But when you do suffer a total loss to your vehicle due to a crash, your insurance company may try to minimize your claim and give you less than the vehicle is actually worth. The good news is that you can dispute that initial assessment, and you may be able to get a much better settlement if you are prepared and persistent.

Instructions

1. Provide the insurance company with pictures of your vehicle before the crash, if possible. Those photos can prove to the insurance company that your vehicle was in excellent condition and is worth more than the company is offering. The more information you can provide, the better. It is a good idea to document everything you own that is covered by insurance, including items in your home, and any vehicles covered by your auto insurance policy.

2. Look up the value of your vehicle in a reputable price guide like the Kelley Blue Book. The insurance company uses these guides to determine the value of your car when you suffer a total loss.

3. Review the asking prices of cars similar to yours in your local newspaper, and provide documentation of those prices to your insurance company. Write a letter to the insurance company, reference your claim number and include details of the value of your vehicle and why you are disputing the amount the insurance company is offering.

4. Visit local car lots and look for vehicles of the same make, model and year as the one totaled in the accident. Get a quote from the dealer for the offer price on each of those cars, and then send that documentation to your insurance company. It helps to get multiple quotes on similar vehicles, rather than relying on a single one.

5. Purchase another car if you can, or use one that is already in your family. The longer you can hold out, the better your chances of getting the car insurance company to comply with your request. Car insurers like to close their old cases, and they may be willing to pay more for your vehicle to get that old case closed in a timely manner.

Tips & Warnings

• Keep all documents related to your accident in an easy to access file. Retain the original accident report, any pictures from the accident scene and any police reports that were filed at the time.

References

• Car Insurance: Negotiating a Claim