You will soon discover that insurance companies may not be as “consumer-friendly” as they claim to be if your vehicle is totaled. commercials. We hear horror stories every day about people receiving offers for vehicle total losses as low as $50. Is this legal? What is the settlement process? This topic has been discussed in several articles. We are happy to share our knowledge and help you protect your rights. Vehicle total loss is when the cost to fix the vehicle exceeds 70, 80 or even 90% (it all depends on your state).
law). The car can be considered a total loss if its value is $10,000, and the estimated cost of repairs exceeds $7,000 (or $9,000 depending on your location).
Before they inspect the vehicle, insurance companies know its value. Although they won’t disclose the value of your car until the end, they do have an excellent understanding of vehicle values. A third party company usually hired by an insurance company (usually CCC Information Services Group, Inc) will evaluate your car. To determine the “going price” of your car, they will examine vehicles in your area.
After determining the vehicle’s value, they will compare that with the repair estimate. Then, they will add the rental cost to the equation (if the car would need to be fixed and the renter has rental coverage, the insurance company will cover that).
account), and determine whether there is a total vehicle loss.
This is where the “real” assessment of your car starts. The insurance adjuster will examine your car for any damage, rust or cleanliness. They will also inspect your vehicle for any special features, options, or equipment. They will.
Determine if your vehicle is in good, fair, average, average or poor condition (or similar terminology). CCC (or another third-party company) will then resubmit the information and, usually within 24 hours this company will provide a report with comps in your area for a vehicle similar to yours.
However, the insurance adjuster has discretionary power to add/subtract certain items. For example, if they feel the car is in exceptional conditions, they may add $200 to their offer. If the car has had prior
They will then reduce the amount they consider adequate.
This is where “negotiation begins.” We have put the word negation in quotations because it is not a true negation. You will be given an offer by the total loss adjuster and told that it is a.
Final offer. They will then reduce the rental car. Some jurisdictions allow for up to three days.
Is this legal? Yes. Insurance companies can offer coverage as long as the offer is within the CCC’s “range” or the third-party company’s “state law requirement” and the rental regulations meet the CCC’s “range”.
You have the upper hand How can you defend yourself? There are ways to overcome the above scenario. Ask for the CCC report. This report is crucial. It is a requirement that the insurance companies give this information to you. They must provide you with the numbers they are considering.
If you feel they aren’t taking into consideration certain factors (e.g. low mileage), you can contest the report. You should not forget to get the original estimate for repair. Ask the insurance company if they are trying to lower the car’s value. You can reverse math your argument to convince them to fix it. You can only win your vehicle total loss by having all the information you need. Don’t settle until you see it all.