What do I need to do to get fair value for my vehicle that was totalled (not my fault)?

Question

On a major highway a driver not paying attention rear ended me and hit me so hard it did structural and mechanical damage and has been deemed unrecoverable. Will I get retail value? What measures should I take so I won't get ripped off.

Answer 1

I hope you noone in your car was injured. First of all, see what the other guy's insurance company is offering you for your car. They are only obligated to pay for the market value of your car just prior to the wreck. So find out what the market value of your car was prior to the wreck. It does not matter what you think it was worth. (ie: someone totaled my car that had 100,000 miles - I drive alot - and the insurance company only wanted to give me the KBB value of $300.00 for it, even though it was in fine condition and probably would've gone another 100,000 miles). So check both papers with ads in it that have your type of car and check the bluebook value, that is usually what you will get for your car. Most people who get in car accidents that are not their fault end up on the short end of the stick. Sorry about that, but I've been in a couple where my cars were totaled because others were not watching. If you had to pay for towing, then that should be reimbursed too. If any of your clothing was torn in the wreck, get that back too. If you had any equipment in the car that was ruined, include that in your reimbursement also. However, if you believe they are not giving you market value, don't settle until you are satisfied. And make sure they allow you a rental for the period you need it, they should pay that too. Some insurance companies try to put a quick limit on the rental, but you need a car, and by most state laws, they are to pay for it for a reasonable amount of time. And if you were hurt, aside from the car, all medical bills, time off work (whether or not you have sick leave), pain and suffering, milage to doctor visits and wages lost should be included in your settlement. Lastly, laws differ somewhat from state to state. If you feel they are not offerring you a fair deal, see a lawyer who works on a "pay them if you win, if not pay nothing" basis. There are lots of good lawyers out there, believe me! Sorry about your accident, hope some of this helps you understand your rights. Good Luck with everything.

Answer 2

You will get the actual cash value of your car - that means what you could have reasonably sold the car for given it's age, condition, mileage, options.

Most cars are not in full retail condition.

Do not waste your time looking at Kelly Blue Book. No insurance companies use that book to value cars- the prices are inflated.

As far as books go - the industry standard is the National Automobile Dealers Association (NADA). Keep in mind - the insurance company may deduct from the retail value in the NADA to account for the cars condition (do the tires need to be replaced, prior damage, condition of interior./paint.)

Some insurance companies use a market survey program to determine the value of a car. The one my company uses gets it's values from JD Power listings.

Your adjuster will be able to tell you how the value of your car was determined.

Answer 3

You will get an offer based on what the company believes is actual cash value. Check local papers, AutoTrader, bulletin boards at malls, etc, to see what people are selling similar vehicles for, based on mileage, condition, options, etc. If the offer is a lot lower, use your collected data to reinforce your contention that they have low-balled you. There will likely be a little room for them to up the offer.
Basically your car is worth approximately what you could have sold it for, just before the accident, not what you would have asked for it, but what somebody would have paid you.
In the case of the only car I ever had written off in my 42 years of driving, the offer was actually higher than I had expected to fight for, which made the settlement easy.

Do not engage a lawyer unless you have injuries they are seriously undervaluing.
Even if a lawyer gets you a couple thousand more for your car, his fee is based on the total amount, so you would lose out.

Answer 4

The other guy's insurance should give you blue book value. You will not get retail value - that was out the window the moment you drove the car off the lot.

Make sure you get updates from them and a copy of the estimate from the body shop where they deemed it a total loss.

Answer 5

Retail isn't fair value. They shouldn't HAVE to pay dealer costs, and advertising, and warranty, and detailing - which are all included in retail.

FAIR value, and all the other driver is legally obligated to pay - is actual cash value, aka, depreciated value. All his insurance company is required to pay, is the LESSER of the actual cash value, or the policy limit - depending on what your car is worth, he might not have enough insurance to cover it.

If you don't want to get ripped off - or if you bought a fancy schmancy "retail value" policy (highly unlikely), go through YOUR insurance, and let your insurance company worry about collecting from the other guy.

Answer 6

You can only get market value (the value a comparable year, make and model vehicle if selling for in your area; not Blue Book as that is a national average).

When the claims department comes back to you with a dollar amount, you can contest that value. Look for comparable vehicle in your local newspaper, auto-trader, what ever. Submit those ads to the claims person and they can adjust their figures accordingly.

Answer 7

you'll get market value only, according to condition and age. they will try to keep the payout small. Note the manufactured month and year, they often say an car made in 07 is an 06 model, and pay down accordingly.

Answer 8

check the blue book value for your vehicle, for your state, that should give you an idea.

Answer 9

(ACV) actual cash value is all that they will give you.