When a vehicle is declared a total loss by your auto insurance company, you may be offered a settlement for the car. Depending on the policy that you purchased and the details of your plan, the amount that you can expect to receive may vary.
In many cases, insurers will offer a settlement that will pay for a comparable replacement. The replacement value of your vehicle may vary based on the car that you owned, the length of time that you owned it and the age of the vehicle.
Comparable replacements can vary based on your insurer and the policy, so you may not get the same amount that you paid for the vehicle. For example, if your vehicle is one year old, then it has already depreciated in value and the settlement may be the value of your car after depreciation rather than the cost of the car.
Negotiating the Amount
If you feel that your insurer is not offering a fair amount based on the details of your policy, then you may be able to talk to the company and negotiate for a better amount. Keep in mind that it will cost money to hire an appraiser to evaluate the actual value of your car and going to court if your insurer refuses to offer more can be very costly.
It is usually best to read your policy thoroughly if you are not sure if the amount you are offered is fair. Some insurers will offer the replacement cost if it is specifically stated in your policy.
A total loss means that your car will cost more to fix than it would to purchase a new car. Contact us to speak to an agent for more information about your insurance policy.