Auto Insurance Claims: Value of total loss disputed, kelly blue book, certified mail

Question
My car was deemed a total loss by the other driver's insurance company (they accepted liability).  They valued the loss of my car at about $7,800.  Kelly Blue Book shows the retail value of my car to be $10,100.  NADA shows the value to be $9,050 without taking into consideration leather interior and some other options (KBB takes these into consideration--NADA doesn't).  I've also checked autoTrader and found comparable cars for sale (without leather) in the $9500 to $10600 range.  I understand that the insurance company is only supposed to make me whole but it seems like settling for $7800 will leave me much less than whole.  I've discussed this with the adjuster and all I'm told is that they don't pay based on the retail value of the car.  If that is the case, how am I whole?  It seems like they need to increase the settlement about $2K for me to be whole.  How do I negotiate to increase the settlement amount?  My auto agent suggests that I file a complaint with the state insurance dept and contact my aduster's manager.  He suggests that I go to a manager without letting the adjuster know so the adjuster doesn't "prep" the manager before I talk with him/her.  So, again, how should I negotiate for a higher settlement and how do I find out who a claims manager is to discuss this issue with?  Thank you.

Answer
Benjamin,

An insurance company owes you the actual cash value of your car just prior to the loss. That is defined as the cost to replace your car with one of like kind and quality, plus sales tax and license transfer fees. So do some shopping and see what the market is for a car like yours.

If you are dealing with the liability carrier of a third party you must understand that they have no legal duty to you. The fact that they have assumed liability shows that their policyholder is at fault, and that is where you must apply the pressure.

Send the at fault party a letter (by certified mail) stating that their insurance company has not indemnified you (made you whole)in the loss and you will be holding them responsible. Tell him that you will take the necessary legal actions against them in order to be indemnified. Send a copy of the letter to the adjuster and/or his manager.

See if that lights a fire under them.

Charlie