Auto Insurance Claims: auto loss claim, total loss

Question
Hello, I would really appreciate some insight in regards to my total loss claim with my insurance co. I do not agree with the amount they are saying my car is worth and I was wondering  what recourse I have. I have asked for an options sheet for clarifcation of the value they are arriving at but they have not producted it. They are saying that my options are standard but they were not. I do not want to be difficult but I just feel I am due an explanation. Thanks Maybe you can supply a resource I can use. They are saying NADA for the public is different than that used by insurance companies. Is this true? Thanks Again! Kate

Answer
Hi Kate.  Sorry you are having a difficult time.

They definitely should provide you clarification regarding the precise information they used to evaluate your vehicle.  Was the vehicle stolen or can it be inspected now?  If it is available, they should inspect it and make sure they are providing accurate condition and options.

They will consider several factors including mileage, options, and condition.  Was the car well maintained?

I would call the claim rep back and explain exactly what information you want.  If he/she won't provide it, ask to speak to the supervisor.  Be polite and courteous but firm.  Getting angry will only make things personal and will not help.  If they are really unreasonable, you can file a complaint with your state department of insurance.

NADA for the public is a free service and provides a very rough idea of value.  The insurance company has a contract with NADA and pays for their information, which is far more up to date, complete, and accurate.  But if they don't have the options or condition right, that will mess up the value.

If they have entered your options as standard but this is wrong, you need to prove this.  If available, this can be done via inspection.  Or maybe the options are listed on the bill of sale when you bought the vehicle?  Could a mechanic call them to explain the options?

Check www.cars.com for a listing of used cars in your area that have your options.  Now keep in mind that these will be shown at list price, which is generally higher than the cars will actually sell at.   But you can call the sellers and ask them  what price they would accept.  They will likely cooperate once you explain that you will soon be in the market to buy a car once you settle your claim.  if you can produce 3-4 sellers who state they would sell a car similar to yours at a certain price, this is very good documentation that the insurance company should consider.

If all else fails, your policy probably has a appraisal clause (most do).  Read it.  it normally says that you and the insurer will each hire an appraiser (about $300 each).  the 2 appraisers will try to agree on a value.  if they cannot, then they choose a 3rd appraiser who makes the final decision.  Since this costs you money, this is only a good idea if we're talking about a huge disparity in value.

Good luck!