Auto Insurance Claims: replacement value, state insurance commissioners, appraisal clause

Question
An insurance company recently totaled my fathers vehicle. He had full coverage and there was no injuries. There offer for replacement is thousands less than blue book. They are offering the trade-in value of the truck not retail. Not only are they offering significantly lower than the vehicle is worth they are claiming that they sold his policy to another company. He has never had any notification of any change in his policy or company. What do I do?

Answer
Hi JoAnn,

The insurance company owes your father for the fair market value of vehicle.

You should check several sources to determine the value. Please check the following:

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

The last one is where you can find actual vehicles like your fathers that are currently for sale. Of course you will have to make adjustments for differences in mileage, options and condition.

You should also ask the insurance company to provide you with a copy of what they used to determine the value. If you are still unable to negotiate a fair value you can file a complaint with the state insurance commissioners office.  Finally, look in your fathers policy for a clause referred to as the appraisal clause or right of appraisal. If that clause is in the policy you can hire an appraiser to inspect the vehicle and write an appraisal report to determine its fair market value.

I hope this helps
Richard Hixenbaugh