Auto Insurance Claims: Settlement Offer for Vehicle, What is my car worth?

Question
Dear Mr. Perry~  I live in NJ.  Another driver hit me from behind, while I was stopped, waiting to make a left hand turn on 5/24/11.  I own a 1993 Mercedes Benz E300 with 179,000 miles.  My car was in excellent condition.  The auto company representing the party that damaged my vehicle has offered me $ 3,200 to settle the damage claim.  I can not find a replacement for this amount.  I researched the comparable sales that they provided in the inspection report~ one was never listed at this dealer.  The second was not available and no information on the sales price and the third was an Internet ad~ which I have still have not received a return call.  I left three separate messages.  I have provided a valuation from the mechanic that has serviced my vehicle since I have owned it.  His assessment is $ 5,700.00.  I have provided several cars as comps from dealers on the Internet, however, they are outside of the typical 50 mile geographic range. It appears that 1998 E300's are hard to find. What options do I have to assist the Geico Adjuster is offering a reasonable settlement offer?

Thank you for taking the time to address my issues.
Sincerely,
Carol Leszczynski

Answer
Carol,

  Your question is common, and unfortunately there is no easy answer.  Although I won't opine as to the value of your vehicle online, I will do it for free if you call my office.  We perform appraisals for insurance companies, attorneys and individuals all the time.  Below is what the State of NJ has to say on the subject:

How will the value of my vehicle be calculated to determine if it is a total loss?

   Each insurance company is required to select one of three prescribed methods for use in the settlement of all their total loss claims.

   The three methods which have been approved by the Commissioner of Banking and Insurance are:

1. Taking the average of the retail values of substantially similar vehicles as listed in the current editions of the "Automobile Red Book" (or "Older Car Red Book") published by Penton Media and the "N.A.D.A. Official Used Car Guide" (or "N.A.D.A. Official Older Car Guide") published by the National Automobile Dealers Used Car Company.
2. Using a quote obtained by the insurer for a substantially similar vehicle available for you to purchase from a dealership within 25 miles of where your car is normally garaged.
3. Utilizing the services of an approved source, including computerized databases that produce fair market values of substantially similar vehicles. At this time Audatex, Mitchell International and CCC are approved for use in determining fair market values.

   If your vehicle cannot be valued using any of these three methods because they fail to represent a true cross-section of the market to determine the fair market value of your car, the company is then required to use the best available method and fully explain to you, in writing, how they calculated the amount they are offering you.

   In addition to telling you which method is used to value your car, your insurance company must also provide you with an itemized list showing all additions, deductions, and sales tax applicable to your vehicle.

INFORMATION IS ALWAYS FREE AT PETTY DETAILS, LLC!