QuestionA unlicensed driver(driving his company's vehicle) hit us on the passenger side when he changed lanes into ours. I have filed a claim with his company's insurer. They claims adjuster agrees that most probably its his party's fault (yet to accept liability) and inspected my vehicle at the bodyshop.
1. He wants to total the car and pay only 5K for my 2000 honda civic. The kbb for a retail used car price is around 8K. I dont think its a fair deal.
2. why would he take away towing/rental etc from the fair value and pay me the rest? (even though they have not let me get a rental till the accept liability)
3. My pregnant wife who was in the car at that time, was taken to the ER for injury/tests. The claims adjuster wants to settle it even before i figure out the full medical bills.
I just want a opportunity to buy a similar used car with the amount they pay and want them to take care of the bills directly. What do you advice?
Answer
Wrecked Vehicle
Hi raj_r,
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.
For more information or help with a total loss claim please visit www.collisionclaims.com
I hope this helps
Richard Hixenbaugh
