Auto Insurance Claims: totaled car, progressive insurance, settlement talks

Question
I just totaled my brand new (5,000 miles) VW Eos. I have no idea what to expect from my insurance company. I have Progressive Insurance. I would like to replace the car with the exact same if possible...what should I expect to have to pay out of pocket? I have a $500. deductible...LJ

Answer
Hi Larri Jo,

The insurance company will make you an offer on the fair market value of your car. They will usually try to lowball you so you need to research the value before you get their offer. You should check the following;

1) www.nada.com
2) www.kbb.com
3) www.edmunds.com
4) www.autotrader.com

The last one will allow you to search for currently for sale vehicles like yours in your area. Print out all the value infor you find, average the values to know the average value of your car. Then be prepared to negotiate the value of the car. Be aware that once you agree on the value of the car they will then need to add sales tax and title costs. Do not let them include the tax in your settlement talks. First agree on the value then add the tax and title, then subtract your deductible. Also keep in mind that the insurance company is not responsible for paying the amount of any financing you may have. As is usually the case you may owe more on the vehicle than it is worth. You should call your finance company to find out the payoff amount. That will give you a good idea of how much you may have to pay out of pocket after the settlement is complete.

I hope this helps
Richard Hixenbaugh