How do you negotiate a totaled car with insurance?

Question

If you don’t agree with a total-loss adjuster about your totaled car’s value, you can appeal their decision by sending a counteroffer along with evidence justifying your claim. On the other hand, if you don’t agree with your insurer’s decision to declare the car totaled in the first place, you don’t have many options. Whether or not a car is totaled ultimately depends on state laws.... read full answer

What to Do If You Don’t Agree with a Total-Loss Adjuster’s Valuation

Review your settlement offer. Your insurance company should send a letter explaining their offer for your totaled car claim. If they do not send you this, you should reach out to them and request as much detail as possible.

Gather evidence for a counteroffer. If you believe your totaled car was worth significantly more than their offer before the accident, you should include information like an independent appraisal, sticker price details, pricing for comparable vehicles, photographic evidence, and receipts for any features or upgrades you added.

Send your evidence and counteroffer to your insurer. You should include how much you believe your vehicle should be worth, with all the evidence to support your claim.

Contact your state’s insurance regulator. If your insurance company does not agree with your counteroffer and you think they may be acting in bad faith, you can contact your state’s insurance regulator for help. You may also want to ask for third-party arbitration, so an outside person can review the claim with an unbiased opinion.

Seek legal help. If your insurer still does not agree to your counteroffer, and you believe you are asking for a reasonable amount, seeking help from an experienced total-loss claim lawyer can help you understand what legal actions you have available.

It is important to remember that insurance companies are only legally required to pay for a car’s actual cash value, or how much it was worth directly before the accident, not the full cost for a replacement vehicle or even the original price you paid for the car.

What to Do If You Don’t Agree with Your Car Being Totaled

If your insurance company has determined your car is a total loss and you disagree (or vice versa), there isn’t much you can do. State laws dictate whether or not a vehicle is totaled, based on a total loss threshold. Unless your insurance company is violating your state’s laws in declaring your car totaled, there isn’t much you can do about their decision.

To learn more, check out WalletHub’s guide to totaled cars and see how your state determines if a vehicle is a total loss.

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Answer 1 · 2022-03-14 19:01:41

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McKayla Girardin, Car Insurance Writer

@mckayla_girardin • 03/14/22 This answer was first published on 03/14/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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To negotiate a totaled car’s value with your insurance company, you’ll need to send evidence of the vehicle being worth more than the insurer is offering along with your counteroffer. Negotiating with an insurance company about whether a car is a total loss may also require contacting your state’s insurance regulator.

How to Negotiate Your Totaled Car’s Value

1. Gather evidence.

Build a case for how much your vehicle should be worth, using photos from before the accident, receipts for any upgrades you made, third-party appraisals, and proof of similar vehicles being worth more from websites like Kelley Blue Book.

2. Submit a counteroffer.

Send your counteroffer to your insurer along with the evidence and a clear statement of how much you believe your car is worth.

3. Contact your state’s insurance regulator.

If your insurer does not agree to your counteroffer, you can call your state’s department of insurance or insurance regulatory committee for help with the negotiation process.

4. Request arbitration.

Third-party arbitration can help even the playing field by allowing an outside group to evaluate all of the negotiation details and suggest a fair resolution.

5. File a lawsuit, if necessary.

Since lawsuits can be really pricey, they should only be filed as a last resort after every other avenue has been exhausted.

While you can typically negotiate the value of your totaled car, it is unlikely you could successfully negotiate with your insurer over your vehicle being considered totaled in general. Whether or not a vehicle is a total loss is controlled by state laws and insurance company regulations.

However, if you believe your insurer is violating state laws, like saying your car is totaled despite the amount of damage being less than your state requires for a total loss, call your state’s insurance regulator for help. They can investigate the situation and determine if your insurer is acting in bad faith.

To learn more, check out WalletHub’s guide to totaled cars.

How do you negotiate a totaled car with insurance?

McKayla Girardin, Car Insurance Writer

How to Negotiate Your Totaled Car’s Value

1. Gather evidence.

2. Submit a counteroffer.

3. Contact your state’s insurance regulator.

4. Request arbitration.

5. File a lawsuit, if necessary.

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