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What coverages do I have to buy?
What does "full coverage" mean?
What happens after I file a claim?
Why do I have to pay my deductible when the other party is at fault?
Why did my adjuster deduct for betterment?
What is comparative negligence?
Why is my vehicle a total loss?
How will the insurance company settle my total loss?
How will the insurance company settle my total loss?
After your appraiser has decided that your vehicle is a total loss, your adjuster will order an evaluation to find out what the retail value of your vehicle is. Most insurers use independent appraisal companies. These companies do the same type of work as NADA and Kelley. The differences are they work exclusively for insurance companies and do not publish their findings.
When the evaluation is completed, your adjuster will make an offer. This will include the amount of the evaluation, sales tax, and license plate transfer fee. If you have a deductible, the amount will be subtracted from the gross total.
As with any offer, you may make a counteroffer. If you do this, you must demonstrate that your vehicle was worth more than the evaluation. The best way to do this is to obtain written quotes from dealers with a list of comparable vehicles that have been sold in the last 30 days.
The offer you receive will be for the title and the vehicle. If you want to retain the salvage, your adjuster will take a deduction. Today most insurance companies expect 15 percent to 20 percent on older model vehicles (8 years and older), 20 percent to 25 percent on newer model vehicles (7 years and newer), and 20 percent to 30 percent on luxury cars and four-wheel drives. If you retain the salvage, you are still entitled to sales tax and the license plate transfer fee.
You may ask for more money when you have done things that add value to the vehicle. This includes new tires, custom wheels, full refinish, new or rebuilt engine or transmission, and additional equipment. This does not include the cost of repairs to keep the vehicle running and safe to drive.
© 2008 By Higgins Body & Paint, Inc. All rights reserved.
