what to do when your car is "totaled" and insurance want to pay peanut for it? advice in insurance claims? t

Question

the car is only 25.000 Miles Mitsubishi outlander XLT AWD silver, excelent condition got it in Sep/2003 it was a VERY good car...someone failed to stop in time and drag my car into the truck in front ...It look like an accordion...frame does not look good!!

I do have "Gap"coverage...hoW that works?

Answer 1

This is always a difficult issue. In order to get what you deserve, you will have to justify to the insurance company what your vehicle is work. You can use the National Association Auto Dealers website to get a good book value for your vehicle. It is better than Kelly Blue Book. Enter in your milage and all your options and BE HONEST about the original condition of the vehicle. Then you can get an idea of what the vehicle is worth. Keep in mind that your vehicle will not be worth the retail value provided. However, sometimes, insurance companies either forget or neglect to put in all the options, resulting in a lower quote.

Answer 2

You didn't really say a lot about what the peanut offer is. There have been a ton of questions posed in here about totaling cars, you might want to check them out. The offer from the company is ACV (what it will cost to buy the same vehicle on the market), not NADA or Blue Book necessarily. It does not take into account if you owe more on your loan than it it worth. It already figures in that you've maintained it, and usually if the mileage is low, don't expect a huge allowance for that.

The total loss offer is somewhat negotiable, and as with any dispute, you can appeal it to the supervisor, and up the management chain of command. Hard to say much more with the information you provided, but that's essentially how it works. You don't get paid so you can buy a nicer newer car, and usually the company will have figures to back up what they are offering.

Answer 3

You will not be given replacement cost for your car. You will be offered market value, (what the buying public is willing to pay for something). NADA, Kelly etc. are good guides but settelment will be based on your vehicle condition, mileage, options and market survey. If it turns out it's worth peanuts then that's what you get. Do your part -- locate and document as many vehicles in a 50 mile radius that are for sale and are as similar to yours as possible. There isn't an insurance company anywhere that will not pony-up if they are shown what they owe. If you do this, (and keep your cool), and still truly feel you are not being offered the going price for your car then respectfully ask for a manager, and another and another until someone can either explain to you why they are offering what they are to your satisfaction or, possibly, offer more money. Keep in mind that many vehicles values drop 'like a rock' (to quote Chevy trucks). Leave lawyers out of this as they will only take 40+% of any settlement you get. (this is for the dumb-@ss that advised you to run to court) Remember, insurance companies have an army of lawyers and if they are in the right you will not get one thin dime over a fair settlement amount. And lawyers ALWAYS get paid.

Answer 4

You usually won't get much more for it unless you had purchased higher coverage limits, such as a rider for a historic or classic car.

Insurance companies use industry-standard salvage values from independent providers, such the Kelly Blue Book for used cars. A totaled car is only worth the value of the parts, and insurance companies are not in the business of paying more than that.

You might consider buying your totaled car back from the insurance company and getting a body shop to estimate the repair costs to see whether the car is worth fixing. But if the card suffered extensive damage, especially in the chassis or frame area, I would not bother trying to repair it - the car may not drive as well ever again.

Answer 5

Your car may be worth nothing-- what type of car? Cannot advise you unless you provide year, make, & model and state you are in.

Now that you provided more info, If it is your insurance co that is not offering enough, there is an arbitration clause in your policy that you can use, but it will cost you as you will have to pay for your arbitrator and the umpire. If it is the at fault insurance co, go through your own carrier. If they are both offering the same, keep in mind that SUV values have gone down due to high gas prices and these once high valued vehicles have depreciated a lot due to this.

Answer 6

Being a former adjuster the insurance company will evaluate the value of your car using one of three methods:
1. NADA Blue Book Value
2. Kelly Blue Book Value
3. An adjuster will call three dealerships or lots in your area and
get an average of how much your vehicle is worth from the
quotes (make sure to ask for the names of these lots/dealerships.
-----
Then the adjuster will deduct for prior damage if legal in your state...this may include depreciation of tires, transmission, etc.
Dings, dents, cracked windows all are included under prior damage not related to the accident.
Then the adjuster will call your lienholder and find out how much you owe the bank. If you have the title it makes it easier to settle the total loss. If you disagree with his/her evaluation of the vehicle you can resolve the damages under your policy if you carry collision coverage. You can even hire an appraiser of your choice if you decide to resolve the total loss under your insurance policy.
Good Luck!

Answer 7

Insurance companies will only give you the ACV of a vehicle when it's totaled out..Your best bet in the future would be to carry GAP insurance. GAP will pay the difference of the ACV and what you owe plus give you additional monies for a down payment on another vehicle.

Answer 8

Find a similiar car for sale in something like auto trader. Then, check the blue books and show them the proof. Call you state insurance commissioner's office and ask about the rights you have in the situation.

Good luck!

Answer 9

You'll be paid fair market value. If your car is worth peanuts, that's what you'll get. What's the year, make, model and miles on the car? And how much is the insurance company offering?

Answer 10

Craps, but they are only obligated to pay "book value". If you have any receipts for recent expensive repairs, it may sway them on it's value. I had that once, and got more cash.

You might also not settle for cash. "Insist" on a "comparable" replacement. Scream and holler, loud.

If it is/was old, insuring is a bad choice. The value may not be worth the premiums.

Good luck.