When it comes to negotiating a total loss settlement, there are a number of factors to consider. The first step is to determine the value of your vehicle. This will depend on the year, make and model of the vehicle, any improvements in body style, the number of miles it has traveled and its physical condition. It's important to remember that there is often little connection between these factors and claims departments.
Major airlines settle tens of thousands of claims for total losses each year. If they can pay an average of 5 to 10% less on their claims, this represents a lot of money and, therefore, claims departments are often encouraged (explicitly or not explicitly) to fight for every dollar. To help you move in the right direction with your car claim, we've compiled some tips on settling total losses. Depending on the state in which the claim was filed and whether it is a “own” claim or a “third party” claim (see the definitions page), you may be entitled to cash compensation for the actual or inherent loss of value of your vehicle due to an accident, especially if you retain your vehicle. When negotiating a total loss settlement, it's important to understand the process and know what you're entitled to.
You should also be aware of any applicable laws in your state that may affect your settlement. It's also important to be prepared for negotiations and have all the necessary documents ready. This includes any repair estimates, photos of the damage, and any other relevant documents. It's also important to understand that insurance companies are in business to make money. They will try to minimize their losses by offering you a settlement that is lower than what you are entitled to.
It's important to be firm in your negotiations and not accept an offer that is too low. You should also be prepared to provide evidence that supports your claim. Finally, it's important to remember that negotiating a total loss settlement can be a long process. It's important to remain patient and persistent throughout the process. If you feel like you're not getting anywhere with negotiations, it may be time to seek legal advice.
