If your car is totaled
After an accident, the insurance adjuster calls with the bad news: Your car has been totaled. The insurance company will cut you a check for the value of your car–minus the deductible on your collision coverage–and sell it for salvage. Will you get enough money to replace the car?
Yes, you probably will.
Insurance adjusters typically use several sources to pinpoint the retail value of your car (what you could have bought it for before the accident). They look at used-car price guides, consult specialized services and software, call dealers and even peruse local classified ads. Then, they come up with a range. Where your car falls depends on its condition, mileage and options. That’s where subjectivity comes into play and disputes can arise.
If your car was a pampered, low-mileage cream puff, make your case. Insurers concede that when a collectible car or specialized vehicle is involved, it’s hard to find enough comparable models to get a broad sampling of value. “If the consumer can provide information to help us, all the better,” says Greg Poling, a State Farm auto consultant. If you can’t persuade the adjuster to increase the settlement, appeal to his or her manager. If push comes to shove, call your state’s department of insurance. State law often prescribes a grievance procedure.
Do the math. In most states, your car is considered a total loss when the cost of repairs plus the probable salvage value exceeds the actual cash value of the car.
