McKayla Girardin, Car Insurance Writer
@mckayla_girardin
You can fight an insurance company over a totaled car’s value by sending the insurer a counteroffer along with evidence justifying your car’s value. If the insurance company does not raise its offer, you can contact your state’s insurance regulator, seek arbitration or file a lawsuit.
How to Fight an Insurance Company Over a Totaled Car’s Value
- Receive a settlement offer from the insurance company.
- Gather evidence, including an independent appraisal, the car’s sticker details, prices for comparable vehicles, photos of the car before the accident, and receipts for any features you added.
- Send this evidence and a counteroffer to the insurance company.
- If the insurance company does not agree to your counteroffer, contact your state’s insurance regulator to request help.
- Ask your insurance company for third-party arbitration if necessary.
- File a lawsuit as a last resort.
It’s important to remember that insurance companies are only required to pay a car’s actual cash value (ACV), not the cost of a replacement car or the original price you paid for the vehicle.
Fighting an Insurance Company’s Decision to Total a Car
Car insurance companies and state laws determine when a car is declared a total loss, so it is unlikely that you will be able to fight your insurer if they decide your car is totaled. Unfortunately, you can typically only fight your insurer about your vehicle’s value.
However, if your insurance company declares your car a total loss in violation of your state’s laws, it is important to contact your state’s insurance regulator for help. They can investigate the situation and see if the insurer is acting in bad faith.
To learn more, check out WalletHub’s guide to totaled cars.
People also ask
What does it mean when your car is a total loss?
When your car is a total loss, it means the cost to repair the car exceeds the value of the car. If your car is declared a total loss your insurer may replace your totaled car with an equivalent one or issue payment for the actual cash value of the totaled vehicle.
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read full answerCan an insurance company force you to total your car?
Yes, an insurance company can force you to total your car because state laws regulate when cars need to be totaled. Your only option is to negotiate with your insurer about the car’s value, as convincing the insurer to adjust the value might affect whether the car has to be totaled according to state law.
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read full answerHow can I negotiate a settlement with an insurance claims adjuster?
To negotiate a settlement with an insurance claims adjuster:
- Start by filing a claim and sending a completed proof-of-loss form to your insurer as soon as possible, if you haven’t already done so.
- Wait to receive the insurance adjuster’s settlement offer (exact timeframes vary by state).
- Make a counteroffer if you are not satisfied with the adjuster’s offer.
- Provide the adjuster with any evidence or documentation supporting your counteroffer.
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