Auto Insurance Claims: valuing a totaled truck, private sale value, salvage value

Question
Our truck was totaled by a relative that we lent it to. Amazingly, he said he's not hurt. I want to be prepared, though, to deal with the insurance company and their probable low-ball offer. Do they pay for "trade-in" value, private sale value (5600 vs 7500 on Kelly's BB) or what? Nada values it at 10,950. What data should I be collecting? And should I have the truck towed home(with AAA) to save on storage(it just happened today) Then how do I dispose of it? Thank you.

Answer
I'm sorry about your loss.  First, please do not assume you will receive a low ball offer.  Insurance companies are staffed by normal people and most of them want to do the right thing.  There are some bad apples out there in every profession, but most will be fair.

Assuming you have Collision coverage, the insurance company will handle the cost of moving the vehicle to a storage free location, probably a salvage yard they have an agreement with.  They will also cover storage fees at the current location, assuming it was towed there from the accident scene.  Make sure you notify them immediately and do not cause any delays.  When they settle with you, they will give you the option of keeping the vehicle or they will dispose of it for you.  If  they take the vehicle, they will pay you full retail value minus your deductible.  If you keep the vehicle, they will deduct the salvage value that they would have received for the vehicle had they kept it and sold it.  Most people do not keep their totalled vehicles.

Insurance companies use many different methods of determining the retail value.  Some use NADA, some use a computer vendor, and some do their own research.  Their legal obligation is to pay you the retail actual cash value - which is what the vehicle should sell for on the open market if it had'nt been damaged.