Auto Insurance Claims: Total Loss Settlement., appraisal clause, 2004 nissan quest

Question
Help!
I had 2004 Nissan Quest SE model which was fully loaded with navigation, dvd, cd changer, leather seat, and etc.
It had only 37,000 miles on it. We bought the car as the family car. I have few kids in elementary school.
Oneday a teenager runs the red light and hit my car on side.
The car is a total loss.
Geico offered $18,404 for the car based on their research on the value of my car. Here is the problem, I cannot find any comparable car around that price near where I live.
What do I do? Geico say that is their final offer.
I think the reason that I cannot find similar car as our lost car is that it is a family car that is fully loaded and has low mileage. Geico says that is how much my car worth. I search online everyday trying to find the car that is similar to ours at that price $18,404. I couldn't.
I even asked Geico to find the car for me so that I can just replace my lost car. Do I have to accept their offer that I can't buy similar car around where I live?
Thanks for your help.

Answer
Dear James,

An insurance company owes you the actual cash value of the vehicle that was damaged. That means the cost to replace the vehicle with one of like kind and quality, or better. It appears you have done your homework with respect to shopping for a car like yours. If you can find three cars of like kind and quality, then take the average price and that is the ACV.

No, you do not have to accept Geico's offer of settlement, but you didn't say whether Geico is your insurer or the insurer of the at fault party in the accident. The next step is to file a claim with your own company (assuming they are not Geico) or file a claim with the other party's company (assuming Geico is your company). If Geico is your company, there is what is known as the appraisal clause in every policy to settle claims in cases of disputes like yours. If Geico is your company, you should send notice to them that you intend to exercise this option.

If Geico is the insurer of the at fault party, then the appraisal clause is not an option. You can send them a letter by certified mail stating that you decline their offer and will seek recovery by legal means to be made whole in this loss. If they do not respond with a better offer, then you can file suit against their policyholder for the ACV of your car, plus sales tax and license transfer fees. Chances are that the amount is too large for small claims court, so you will have to retain a lawyer to handle this case. If you were injured in this accident or sustained any pain or suffering and have the full tort option on your insurance, finding one will not be that hard.

Charlie