Total Loss Settlement Issues
If your vehicle is a total loss, then you need to learn how insurance companies evaluate your damages and the fair market value of your car.
In many occasions, the fair market value of the car is not really “fair”, or at least not for the consumer (you). The insurance company has complete control on how the fair market value of a vehicle is evaluated and how they will settle with you.
Most insurance companies hide behind the fact that they outsource the total loss evaluation process to a third independent company (CCC Information Services Group owns the monopoly in this area). Since this company is specifically catering to insurance companies, they want to keep their clients (the people paying) happy with the number they come up with.
This company will present data to the insurance company showing the value of the vehicle so they can declare the total loss. The insurance company can always refuse this report and have CCC (or similar companies) re run the numbers until they come up to the amount they actually want to pay.
Once the adjuster (on behalf the insurance) is happy, then a total loss settlement offer will come to you (either by phone or written). You will be told that there is no much room for negotiation as there are “comps” backing up those numbers. Do not give up, there are several things you can do to protect your financial rights over your vehicle.Read more.
