Insurance total loss is a scam! I get sick of reading emails coming from all corners of the country, from people looking for consumer protection. Every insurance company seems guilty. It is true that I earn my living working with insurance companies and believe strongly in the need for insurance. The consumer is often the one who suffers the most when it comes down to total loss claims. Let me tell you more and let you decide.
This process allows the insurance company to make you pay what they think your car is worth. This is done by comparing similar values in your local area. These comparables are often analyzed by third-party companies. Insurance companies claim that they have no control over this information. But, I countered that this is false. The insurance company controls and pays for the insurance total loss process.
These companies are supposed to represent the consumer, or the person who pays them. Although many people believe these companies are paid to be objective, in reality they have very few customers (big insurance carriers). Guess what? If an insurance company believes this company’s total loss values to be high, guess again. They will cease dealing with this company.
Insurance carriers are the only reason these third-party companies exist. Consumers have no control over which third-party company will inspect their vehicle. It is easy to see the result. This is how these companies can satisfy their client (the insurer). What’s the best way to do this? Insurance companies will settle for you at a lower price if your comparable values are low. You don’t believe me? Google “total Loss Class Action”
The amount of litigation for unfair vehicle value will be apparent. There are many ways you can protect yourself.
Disputing similars and negotiating a fair settlement
It is illegal to offer less than the fair value of your vehicle. Although insurance companies have to be fair, they can get away with low total loss values. While not illegal, there are many other insurance practices. However, they are unfair and unethical. These can also be stopped!
You will feel immense pressure from the total loss adjuster. They want you to settle as soon as possible. You will not even be allowed to show your car maintenance records. Many states will not consider new equipment.
Assessing the value. Most states allow the total-loss adjuster to take your rental car three days after the vehicle is declared total loss. Texas, for example, allows the insurance company to take your car away if they determine that the vehicle is totaled. Not the day they pay. While you negotiate the car’s value, you can either rent a car from a company or take the bus to work.
State legislation allows for the removal of a rental car. This is allowed by most states. It is a good idea to take initiative next time your state legislators or insurance commissioner elections are held. It will take at most three business days for the check to arrive in the mail, even if your insurance total loss is settled the same day they call. It is possible that it can take quite a while for you to get reimbursed for expenses incurred while you are car shopping.
The technique described above is legal. It is unfair, I think. This creates an unfair advantage in negotiations. Most people can’t afford to rent cars until they reach a settlement.
Insurance company. They must get to work.
Insurance adjusters are required to act with fairness and good faith. This duty is implied in all United States insurance policies. This duty is “enhanced”, however, when you deal with your own insurance.
company. The insurance adjusters are required to “help” you and explain the process. They should explain how to present your claim and how to document the car’s value. Many won’t. Most will not.
This amount will be sent to you.” This is it.
It is clear that insurance is essential and has a social benefit. To protect the consumer, there are some adjustments that must be made when considering total loss. You can check your state regulations to see the details. If you aren’t happy with it, call your state legislator.
