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.
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.
Tags: insurance company, agree with, fair settlement, Insurance Claim, Loss Insurance