Auto Insurance Claims: Total Loss, kelley blue book, appraisal clause

Question
A tree from my yard fell over onto our family car and the insurance company came to us with a value on the car of less than 50% of the resale value. They said it was because of the mileage. Now when I went to Kelley Blue Book website and entered all the information including the mileage I was told my car is worth 3300. Why is the insurance company only trying to have me settle for 1400?

Answer
The insurance policy you have says that they will pay the actual cash value(ACV) of your car, which is defined as the cost to replace it with one of like kind and quality. If the settlement offer they gave you is not sufficient to buy another car like the one you had, then you can reject the offer. Send your insurance company a letter telling them that their offer is insufficient to indemnify you for the loss---in other words, make you whole, less your deductible. You should ask them to find you a car as good as the one you had.

If your company stands firm on the offer, there is a mechanism in every policy known as the appraisal clause, which offers a binding resolution of the claim. It works like this: each party hires an independent appraiser, the two appraisers select an umpire and write appraisals on the car that was totaled. Each party pays the cost of their appraiser and shares the fee for the umpire. Tell your company that you are electing to enact the appraisal clause if this is what you wish to do.