What to Do When Your Insured Car is Declared a Total Loss

Introduction

If your car is declared a total loss by your insurance company and you disagree with their assessment, you have several options. This article will guide you through the process of contesting the total loss declaration, negotiating with your insurer, and exploring alternative methods to recover the value of your vehicle. Follow these steps to address any disagreements and potentially lead to a more favorable outcome.

Request a Re-evaluation

When your car is declared a total loss, it is crucial to understand the reasons behind the decision. You can request a detailed explanation from your insurance adjuster. Additionally, you have the right to request a re-evaluation of the vehicle. This can be a significant advantage as it may reveal discrepancies in the initial assessment. Be sure to gather all relevant information and documentation to support your request.

Get a Second Opinion

Another effective strategy is to get a second opinion from an independent mechanic or appraiser. This can provide a fresh perspective on the repair costs and the overall condition of your vehicle. Present this information to your insurer and use it to negotiate a higher settlement. Remember, insurance companies often rely on independent assessments, and a lower estimate can sometimes change their stance.

Negotiate with Your Insurer

Armed with the information from your second opinion, you can start negotiating with your insurance company. Present your case calmly and logically. Highlight any discrepancies in the initial assessment and provide supporting evidence. Insurance companies are often more willing to adjust their claims when presented with new information. This approach can lead to a more favorable settlement.

Review Your Policy

It is essential to review your insurance policy carefully. Read the specific clauses related to total loss claims. Understanding your rights and the conditions under which your insurance company can declare a vehicle a total loss can provide leverage in your negotiations. This knowledge can also help you make informed decisions throughout the process.

File a Complaint (If Needed)

While negotiation is generally the first step, sometimes it may not resolve the issue. If negotiations fail, consider filing a complaint with your state’s insurance commissioner or regulatory agency. These organizations can mediate disputes and provide guidance on how to proceed. They may also take further action if they find the insurance company is not adhering to state laws.

Consider Legal Action (If All Else Fails)

If you strongly believe that the insurance company is in the wrong and you cannot reach a satisfactory resolution, you may want to consult with an attorney who specializes in insurance claims. Legal action can be a powerful tool, but it should be a last resort. Legal representation can help you navigate complex insurance claims and increase your chances of a favorable outcome.

Kept Detailed Records Throughout the Process

Throughout this process, it is crucial to keep detailed records of all communications with your insurance company. Maintain a log of dates, times, and the names of representatives you speak with. Documentation can be invaluable in case you need to present your case to their boss, a legal professional, or an arbitration panel. It can also support your claims if you decide to file a complaint or take legal action.

Following these steps can help you address any disagreements with the total loss declaration and potentially lead to a more favorable outcome.

Why Not Sell the Car Back to the Insurance Company?

Some individuals have had success in negotiating the buyback value of their totaled car. After securing a fair settlement through negotiation, they ask the insurance company to buy the car back at a reasonable price. In some cases, the insurance company may accept this offer. This can be a strategic move, especially if the buyback price is significantly lower than the amount the insurer has already given you. This method has been used successfully, as evidenced by the example provided below.

A Real-Life Example

40 years ago, I was rear-ended by someone who caused significant damage to my beloved 1965 Ford Galaxie 500 LTD. At the time, I had been restoring the car and had just managed to straighten the body. Unfortunately, the insurance company only offered 500 to 600 dollars for the claim, which was significantly lower than the estimate from the body shop, which was around 700 dollars. Clearly, this was not the outcome I desired.

During the negotiation, I took a bold approach to make my point. Sitting across from the adjuster who was seated at his desk, I grabbed my neck with my right hand and began to massage it while staring straight into his eyes. I emphasized that since I had not been physically injured, I did not see why the insurance company would not simply repair my car. The adjuster then said he had to go talk to his boss.

After a brief absence, the adjuster returned and announced that the company had agreed to write me a check for the estimate. While I later learned that a significant number of Californians walk around with cervical collars from soft-tissue neck injuries caused by auto accidents, I was focused on getting my car fixed. And I did. I drove that trusty 1965 Ford Galaxie 500 LTD into the late 1990s.

While this approach may not work in every situation, it may provide a powerful negotiation tool in some cases. However, using such tactics today could be risky and may not have the same effect, especially for more valuable vehicles. Nevertheless, it is worth exploring all possible methods, as you never know what might work in your favor.

Conclusion

The process of contesting a total loss declaration can be challenging, but it is crucial to understand your options and take the necessary steps to recover the value of your vehicle. By following these suggestions, you can increase your chances of a favorable outcome and protect your interests.