Car Insurance Quotation

Reader’s Question:

My California car insurance declared my car totaled after an accident. How much should I expect to receive for the car?

Moira

San Jose, CA

After a car is declared a total loss following an ill-fated accident, the insured has every right to collect for the car’s cash value from his or her insurer. Car insurance companies use various price determinants such as the Kelly Blue Book, websites that offer car pricing, or dealer surveys in assessing the car’s actual cash value (ACV).

You have to remember that prices may vary from state to state because sales tax will be factored in the final amount. The same type of car you bought in California would be taxed differently in, say, Texas. Prices vary from company to company, too, because each has a different set of pricing standards. Most end up declaring the car totaled if the estimated cost to have it repaired exceeds 51% of the car’s actual cash value. So, expect to receive a small assessment.

It is very important then to be very vigilant in the evaluation process. If you feel like your insurer is trying to shortchange you by quoting a very small amount, do everything you can to get the price you think is fair. Get a third party into the negotiations by engaging the services of an independent appraiser. However, you will have to pay his or her professional fee if you do hire one. But in the end, paying for the appraiser’s fee will prove to be worth it if you were able to negotiate for the best amount for your wrecked car.

Tags: auto insurance claims, car insurance, Car Insurance Company, car insurance quotes