Total Loss Vehicle Settlement - What Happens When Your Car Is Totaled

In our last post I actually explained how your insurance company may likely determine if your vehicle was a total reduction from a covered accident. Understanding how your organization makes this determination is important, however , focusing on how they will value your car is much more important.

Once your car is determined to become a complete loss, the process that comes after can be confusing. I wanted to provide several insight, from an insurer's viewpoint, that can help you get through the total reduction process should you ever find yourself in that circumstance.

It is important to remember that, in case your car is deemed a total reduction, your carrier has a duty plus obligation to pay you the ACV (Actual Cash Value) or fair their market value for your vehicle. Understanding that, we want to make sure to are armed with solid & dependable information in the unfortunate event you are in this situation.

The Value or even ACV process:

The ACV or even Actual Cash Value of your vehicle is a phrase that is meant to demonstrate & demonstrate what the fair market value of your automobile is on the date of the incident. Your carrier will have your car checked out, noting all options & functions as well as estimating the condition of the vehicle before the accident. Below is a short list associated with some of the main variables involved whenever determining the value of your car:

• Year, make & model


• Features or even upgrades on the car from the manufacturer


• Is there aftermarket equipment for the car & if there is, does it include or detract from the market value


• Condition rating: estimate of the situation of the vehicle prior to the accident


• Mileage (this, as we all know, can have a considerable impact on value)

Your insurance carrier will likely then use a 3rd party, such as CCC, to obtain a fair market value for your car. This is a short list of things that a 3rd party will appear at when estimating the value:

• All of the vehicle details observed above


• Your zip code, which usually tells them exactly where you live


• Comps: most insurance companies will require a minimum of 2 solid comparative vehicles

Note that where you live is important as automobiles can have different values based on in your area as the market (where you are) is what dictates what cars such as yours would sell for at the time of the particular accident. Also note that the comps are how a price or worth is determined as it is meant to convey such a vehicle like yours, same make/model/year, condition and features, would be really worth in it's pre-accident condition.

One question or issue that will come up at times is "there usually are any vehicles exactly like mine where i came from, now what? " In this situation, most of the time the insurance company will then choose a vehicle that is a year newer compared to yours with similar features & in similar condition. It is usually not really permitted to use an older vehicle as being a comp in this case.

What if I have a tendency agree with the value?

This is generally one of the biggest challenges when trying to negotiate a total loss claim: I have a tendency agree with the valuation that the adjuster provided to me. It is okay, though, this happens frequently and if choose good, accurate information, you can get around your way through this. Here is how:

• Request a copy of the valuation


• Review the details and ensure it represents your motor vehicle: options, mileage, condition, etc .


• If you feel the value is truly not really accurate, do some research and find a few comps of your own, ensure they are accurate. Supply your supporting information to your provider for consideration


• If they don't proceed, advise you are formally disputing the particular valuation.


• Request that your insurance provider issues payment for the "undisputed amount"


• Secure your own independent valuation, your own insurance company will get one of their own


• The two of you will then come together plus compare the valuations and achieve a resolution

I know, at this point you have a few more questions, believed you might. Let's address those:

1. What do you mean by "undisputed amount? " You don't want your own claim halted and, if you have leasing coverage and are in a rental car, many insurance companies will only extend rental for a couple days after they have made an offer for you to settle your total loss. The particular undisputed amount example: Valuation is available in at $20, 000 but really feel your car has a market value of $24, 000 but are not disputing it really is worth at least the $20, 000. So , you accept the $20, 000 but continue with the procedure. This will not prevent you from collecting additional money should it be supported however it does get you something right now.


2. If you dispute the value plus go down that path, you will have to, at the own cost, have an independent marketplace valuation completed on your car. There are several great companies out there to help you, for example http://www.iada.org/.

I highly recommend that you function directly with your insurance company directly to solve a dispute like this. Remember, this can be a negotiation based on some subjective assisting evidence and some objective information too, such as the make, model, year plus features. The insurance carriers want to negotiate your claim and will, most of the time, become reasonable and work with you to negotiate your claim.

In addition, I actually strongly suggest you review your plan before going down the dispute path therefore you understand exactly what your policy says as it relates to this type of claim. Almost all policies and companies have variations, some subtle and some not. Your own policy will be the guiding rule more than your claim so it is important to determine what it says and what your legal rights are.

You can also refer to your own state's Department of Insurance web site to see if your state has particular rules and laws as it pertains to the handling of a first celebration total loss claim.

So, in conclusion, hopefully now you have a better knowledge of how a value is obtained, you might also need an idea on what you can do if you happen to argue with the value. Just remember to be sure it is possible to support your dispute in worth with solid information if you want your organization to consider your position. And, recall, it is a negotiation so be calm plus deliberate with your argument and info. I can almost guarantee it will result in a fair resolution of your total reduction claim.