Auto Insurance Claims: how does it change when you are at fault?, kelley blue book, comparable vehicles

Question
QUESTION: Hi Richard,
I was involved in my first "at fault" accident.  The highway I was on decided to go from 65mph to 0, while I took a drink from my soda.  My car is totaled and the car I hit has minor damage.  My question is how does negotiation with the insurance company change when you are at fault for the accident?  Are they in the driver seat, so to speak, and can tell me what I get for my totaled car?  Is it based on blue book or some other calculation?

ANSWER: Hi Heidi,

Your insurance company should pay you the fair market value of your car. In most cases this is not equal to Kelley Blue Book. Most insurance company will utilize the services of an outside vender to determine your cars value. The problem is that these vendors allow the insurance companies to skew the number in a way that is favorable to the insurance company.  Before you get an offer from the insurance company you should do your own research. You can check www.autotrader.com . Search within a 100 mile radius of your zip code for vehicles of the same year, make and model with similar mileage and options. Try to find 3 to 10 comparable vehicles, print them out and average the values. This will give you a good idea of the fair market value. If the insurance company's offer is significantly different you should send them the info you found and then you can negotiate a reasonable settlement. Remember that what ever figure you agree on as the value of your car, they will then need to add sales tax, title and tag transfer fees.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: It helps a great deal, thanks.  I think you are telling me a) that the fact I was at fault, shouldn't make a difference in the negotiations and b) there are ways to ensure they are offering fair market value.  Thanks a bunch - it helped!

I have been in accidents in the past five years, but they were always someone else's fault.  I guess I was just a little worried that since the accident was my fault, the balance of power changed.  Sounds like it doesn't (until I get my new insurance rate).

Answer
Hi Heidi,

You're absolutely correct. It makes no difference that you were at fault. The reason you pay for insurance is to be made whole. That means to be put back in exactly the same financial condition you were in prior to the accident. Insurance companies try to save money by changing what is required to make you whole. Make them prove it, challenge them and stand up to them when they do not behave.

Good luck!
Richard Hixenbaugh