I remember the accident very well, like it happened yesterday. It was after our graduation, and we were getting ready to go home. I was following my friend in his car. Suddenly, he swerved to the left and then back to his lane. Instead of watching out for what he was avoiding, I was too focused on how his car was driving strangely.
I didn’t notice a big barrier in front of us until the last moment. I quickly turned the wheel to avoid hitting it. Even though I managed to miss the barrier, I lost control of my car. We skidded sideways across many lanes, hit a side barrier, and spun around several times on the six-lane freeway. Finally, we stopped in a ditch on the other side of the road. It’s a memory that feels like it just happened yesterday, and I often think about that day.
It happened in the blink of an eye. Looking back, I realize how fortunate I am to still be here. Honestly, it feels like a miracle that nobody got seriously hurt. Surprisingly, we didn’t even hit another car, despite crossing about 10 lanes, hitting the middle dividers, and bouncing back to the other side of the freeway.
My friend was in the passenger seat, and I panicked when I saw her with her eyes shut. But, it turned out she was just closing them to calm herself down after the scary experience. It’s crazy how things can happen so fast, and I’m just grateful that we all came out of it okay.
Goodbye, Car
Sadly, my car didn’t have much luck. According to the car insurance folks, the cost to fix it was way more than what the car was valued at. Basically, they declared it a total loss. Fixing cars is getting pricier, so it’s quite common for insurance companies to consider them beyond repair.
Back then, my budget was tight – I could barely afford groceries, let alone a new car. The money the insurance company offered me (after deducting my $1,000 deductible) felt like a bit of a letdown. I know my ride wasn’t a fancy new luxury car, but it had to be worth more than what they were offering, right? That’s when I started asking more questions.
Learn the Art of Negotiation
I discovered a valuable lesson from my own experience: just because your insurance company suggests an offer doesn’t mean you have to accept it without question. You have the power to negotiate with them. And don’t shy away from talking to the insurance agent. Contrary to what some might think, the agent’s goal isn’t to give you the lowest offer possible. Their main aim is to do their job well and ensure both you and the insurance company are satisfied with the final agreement. If you can present a reasonable case backed by solid evidence, you’ll likely find that both the agent and the insurance company are willing to work with you. Here are some tips to ensure you get the best value when your insurance company is assessing your totaled car.
Find Out the Value of Your Car
Your insurance company will be doing the same thing, but they’ll use different tools. You can use websites like Kelley Blue Book, Edmunds, and NADAguides to input specific details about your car’s features. These sites will give you an idea of your car’s approximate value. It’s crucial to check all three sites for a comprehensive understanding.
As Steven Lang from The Truth About Cars explains, “Kelley has improved their pricing models… but sometimes undervalues older vehicles. Edmunds is usually more accurate for older vehicles. NADA deals with auto financing and tends to give the highest valuations.”
Looking for Similar Cars for Sale
Just relying on what guides say about your car’s value might not be enough to convince your insurance company. They might want to see specific numbers that reflect what your car is worth in your local market.
When I met with my insurance agent, I took printouts of around five or six Civics for sale in Columbus, Ohio, where I was living at the time. Even though none of the cars for sale were exactly like mine—none had a sunroof or a manual transmission, for example—I still made my point. I showed that if I had sold my car the day before the accident, I could have gotten $1,500 to $2,000 more for it than they were offering.
It’s important to compare similar things here. Not every 2016 Honda Civic is identical. Your model might have been the basic one with no extra features. Perhaps it had some dings, 50,000 miles, and a bit of rust. Don’t show examples of well-maintained Civics with lots of extras and hardly any miles to your insurance company. They won’t take you seriously.
Show Proof of Recent Additions or Upgrades
If you’ve added anything extra to your car, like new tires or a fancy stereo system, it could impact its value. But, to make a case for it, you’ll need to have receipts for these additions. The receipts should clearly state both the cost when you installed them and how recently you made these upgrades.
Be cautious, though. Some aftermarket parts may involve pricey customization, especially if they enhance the car’s performance. Your car insurance likely covers the original vehicle, so any significant changes must be mentioned in the policy. Otherwise, your claim might be rejected because the car they initially insured has been altered.
It’s important to note that most aftermarket upgrades might not significantly raise your car’s value. Even if you adore that $2,000 stereo and speaker setup, you probably won’t get the full cost back when selling your vehicle. The insurance company sees it the same way.
Remember the Saying “Make Me Whole”
When dealing with your insurance, take a close look at the details. A common phrase you might come across is “make you whole,” which essentially means the insurance should help get your life back on track—whether it’s fixing your home or repairing your car.
For example, if your car insurance offers you $7,500 for your damaged car, but you can’t find a similar one (same year and mileage) for less than $10,000, don’t rush to agree. With a bit of your own time and effort, you might find a better solution.
You could even show your insurance an ad for a used car that’s almost the same as your damaged one. Just ask them to “buy me this car, it will make me whole.” Or request a check for the amount in the ad, promising you’ll use it to buy a similar car.
Last Options
If your insurance company is being difficult, you can stand your ground just like they are. They also want to settle the claim, but they’re usually okay with waiting. They’re hoping you’ll give in first. Don’t let them win. Use the advice mentioned earlier to calmly and confidently state your case. If that doesn’t work, think about hiring a lawyer.
Many lawyers specialize in taking insurance companies to court. Just be careful that the money you might gain from pushing the insurance company for a higher settlement doesn’t get eaten up by legal fees. For instance, if you’re offered $8,500 for a totaled car that’s really worth $10,000, legal fees might quickly take away that extra $1,500. Try to discuss fees with a lawyer upfront so you know exactly what it will cost you to fight for a better deal.
The Main Point
Even though your insurance company might aim to give you a lower payout, they also care about keeping your trust and having a reputation for being fair. If your car is totaled, take the time to research before agreeing to their offer.
In my situation, being ready for the meeting with the insurance agent made a difference. They raised their first offer by $1,250 promptly. It wasn’t as much as I wanted, but it was way better than what I would have received without doing my homework and being persistent.