Auto Insurance Claims: Accepting settlement offer, insurance adjuster, security position

Question
Our vehicle was involved in an accident caused by an uninsured motorist, so we turned to our insurer for help. Our auto insurance adjuster is offering us a settlement for our vehicle (which was declared totaled) that will not even pay off the loan on the vehicle and they want us to release the vehicle to the insurance company. Do we have to accept this offer and if not what can we do?

Answer

Dear Sandy,

Sorry to hear that your "baby" was totaled.  That ususlly means a lot of trauma, so you may also be on the lookout for signs of pain so you can get medical or chiropractic help as soon as possible.

But, back to the car.  You do have a number of options.  You do not have to accept their offer.  You can get your own valuations for the car and negotiate a higher price. This takes a little leg work, but it can pay off.  You can research asking prices on the internet at autotrader.com for example.  Hopefully you can get the value higher so you don't have too much to pay off on your loan.

Or, you might be to try to retain the vehicle by not doing all the repairs.  

In this scenario, you would settle for the totaled car, but then "buy back" the vehicle as salvage and re-title it after you have it repaird with used and non-OEM parts.  

The complication in this plan would be your financing and the amount that is owed.  You would need for them to sign off on this plan inasmuch as they would have to be in the security position with the re-titled vehicle.  You will have to convince them of the benefit of this, and possibly use an attorney or other business as escrow.

Let's say that the body shop estimate is $12,000.  You could have partial or necessary repairs with used and non-OEM parts for a lot less, say $9,000.  Thus, it could make sense to go that route.

For other tips on valuation and how to get extra money for extras you put into the car and for ideas on what to do, see the free page on my website at:
http://www.settlementcentral.com/page0007.htm

For information on how to handle a UIM personal injury claim, see the free page on my website at:
http://www.settlementcentral.com/page0451.htm

I trust that this information has been of value to you and so I would respectfully request that you find the form on this site and leave me some feedback.

Best Wishes,

Dr. Settlement, J.D.
www.SettlementCentral.Com