Auto Insurance Claims: Auto Insurance Claim, auto insurance claim, vehicle appraiser

Question
Recently I was in an accident that was the other persons fault. My car was declared a total loss. I owed a little over 7000 dollars on the lein the insurance company was only willing to pay off the lien and give me 1800 dollars towards something else. You and I know i cant buy anything for that dollar amount. I have yet to sign anything for I feel this is unjust. The car was a 2004 Pontiac se2 with all the options and I had a little over 56000 miles. What are my options? Thanks, Jon

Answer
Hi Jon,

The insurance company owes you for the value of your car on the day of the accident plus sales tax. How much you owe on your car and how much it will cost to buy another one is not relevant.

If you don't feel they are making you a fair offer for your car you should first ask them to provide you with whatever documentation they used to determine its value. Then you can look over their documentation to look for errors. If you still feel it is wrong you will need to research the value your self and provide your documentation to them in order to negotiate the value. 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. You should print all value info you find and average the numbers to to determine the average value of your car. Then you'll be ready to negotiate with the insurance company. Another option would be to hire a professional vehicle appraiser who would provide a written appraisal of the vehicles value.

I hope this helps
Richard Hixenbaugh