Auto Insurance Claims: My insurance claim, 1989 toyota camry, high speed pursuit

Question
My 1989 Toyota Camry was recently stolen and quickly recovered the following day, from CHP of course I immediately contacted my Insurance company and reported that it was recovered, everything on the outside looked fine except for the right front blinker light was missing and the CHP officer that said my car was in a high speed pursuit and that the thief that had stolen my car was driving at speeds up to 110 miles per hr and that I really should have my mechanic check it out,  So I did and my mechanic said my muffler was damaged, left front cv axle was broke and I needed shocks and struts.  I got the estiment that came too $1500.00 Then my insurance adjuster sent out a field inspector that also checked out my car and he agreed with my mechanics estimates excepted his estimate was higher about $2300.00  because in case of any transmission damage, so I waited a couple days and called my insurance adjuster he tells me that my car is a total loss and that they would send me a check for $1100.00 and pick up my car I said no way I am not giving up my car not for $1100.00 The engine in my car is great the only thing my car needs is CV axle , muffler and shocks. so now I am waiting on the insurance company to get back to me.  I don't know what to do?

Answer
Hi Debra,

Financial Total Loss
Most insurance companies will declare a car, light truck, or SUV to be a total loss when the preliminary cost of repairs reaches some pre-determined percentage of the vehicle's value. Generally, the percentage used is anywhere from 70% to 80%. A total loss is declared when it is determined that it is in the insurance company's best financial interest to declare the vehicle a total loss. This percentage is an insurance industry practice and in most cases is not related to a state law. There are only a few states that require a vehicle be declared a total loss when a certain threshold is met. Most states allow an insurer to repair a vehicle all the way up to 100% of the vehicles value.  Another way insurance companies calculate if a vehicle should be totaled is to determine what they could sell the salvage for and then subtract that figure from the value of the vehicle. If the cost to repair the vehicle exceeds that figure then the vehicle is a total loss.

The Total Loss Claim Process


Step 1: Determining the vehicle to be a Total Loss
When you are involved in a collision, you will report the claim to either to your own insurance company or the insurance company of another at-fault party.  The insurance company will assign a damage estimator to inspect the damage and write a repair estimate. Once the estimate is written, the repair cost will be compared to the value of the vehicle. Generally, insurance companies will declare a vehicle to be a total loss if the cost of repairs is more than 70% to 80% of the vehicle's value.   

Step 2: Doing Your Homework
If you have been informed that your vehicle is a total loss, the insurance company will then take usually a couple of days to determine the value they are going to offer you. During this time, you should do your own research to determine the fair market value of your vehicle. The easiest way to do this is by using the internet. You should check www.autotrader.com . There you can search for currently for sale vehicle like yours, in your area. You should try to locate 5 to 10 vehicles of the same year, make & model, with similar options and mileage.  Print out the listings you find and average the values. This will give you a good average value to use as a baseline. However, you must understand that the prices you find are asking prices and virtually all of those prices will be negotiated downward to some degree.  Now when the insurance company makes you an offer you will know if it is within a reasonable range or not.   

Step 3: Negotiating and Settling Your Claim
Now that you know what your vehicle is worth and what the insurance company is offering you, it is up to you to negotiate if the offer is not reasonable. You can start by sending the documentation you collected in step 2 above and making a demand of what you are seeking to settle the claim. If the insurance company does not properly negotiate with you then you may have to hire a professional vehicle appraiser to properly establish the value of your vehicle.  If you are dealing with your own insurance company you can invoke the appraisal clause of your policy. This is a part of your policy that is there to help settle disputes in value between you and your insurance company.

I hope this helps
Richard Hixenbaugh