QuestionI was in a car accident the insurance company has determined that it is a total loss. They made an offer and they're making deductions from the settlement for tax, title plus the deductible. Is this the norm?
AnswerHi Miriam,
The insurance company should pay you the fair market value of the vehicle plus tax, plus title, less your deductible. As an example;
$10,000.00 (fair market value)
$ 800.00 (8% sales tax)
$ 35.00 (title fee)
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$10,835.00 (subtotal)
-$ 500.00 (deductible)
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$10,335.00 (net payment to you)
I hope this helps
Richard Hixenbaugh
