Auto Insurance Claims: how does insurance companies determine the value of a totaled car, gap insurance, owing money

Question
Hi, I totaled my car just 2 days ago. I would appreciate any response concerning how I would go about the process of negotiating about the value of the car with the assigned adjuster. My insurance is Farmers and I am in Houston, TX. I owe about 29k for the car. looking at KBB, Edmunds and NADA, the average value of the car is about 30k-31k. I based those prices on the suggested retail value (not the trade-in value). Would this be a good basis (for me) when the adjuster starts to give me an amount that he thinks is the FMV for my car? I had the car for about 1 year. mileage is about 5k only. I don't have a gap insurance on the loan. thanks in advance. - mark

Answer
Fair market value and suggested retail value are not the same thing.  They owe you fair market value which is determined by actually locating all vehicles in your market and confirming actual sale prices.  Though dealers may ask suggested retail for a fully reconditioned perfect car sitting on a lot, it is only the starting point for negotiation.  Most cars actually sell for 15-20% less.  However, the suggested retail has to be recorded as a sales price so they can sidestep the banking laws and absorb negative equity trades and or no down payment into the loans.
The KBB private party figure is closer to FMV or ACV.
Depending on the type of vehicle and the size of your original down payment, not having GAP will likely leave you owing money.  

Good luck!