If you have been in an accident where your car can be declared an auto total loss, then you can be under a lot of stress. However, if the insurance company starts intimating that they are withholding payments and dragging their heels on paying you the damages, and your stress levels are going to go exponentially up!
There are things you can do to protect yourself.
For so many of us, having a car is a necessity for basic living and not having the money to get a new vehicle can severely impair our ability to run our lives. If you are in this unfortunately common situation, remember that you do have options and resources at your disposal.
The first thing that you should be aware of is that having an auto total loss is that this process is a negotiation, not a final number given by the insurance company. The offer that the insurance company puts in front of you is not final (even if they call it that), no matter how much they imply that it is. The process towards getting a final number that you will both accept can be complex, but it is important that you know that you have rights to assert. Be aware of the fact that in this negotiation, as with any negotiation that you have with your insurance company, you will be able affect the final number.
Be aware of the fact that the body shop will receive no cash if the car is auto total loss, and that it is in the best interest of the shop to fix the car. Depending on your insurance company (and state), your car is declared a total loss only when repairs will come to more than 70%, 80%, or 90% of the car's value. Some of the factors that will affect the car's total value include the car's age, mileage, and general condition prior to the accident. This is all added up through the use of CCC Information Services Group, which is the company that most insurance companies will go through to determine the actual worth of your car. While some other third party firm might be used, this one is the most common.
If you find that the initial offer on a total loss vehicle is unacceptable, ask for a copy of the CCC report or the auto total loss report. This will tell you what your car is worth according the these companies. Do not allow your insurance company to deny you this report on a technicality; by law, they need to give you this report because it is the prime piece of information that they are using to determine your payment. Take a look at the factors that they used and see how valid they are. Did they take your low mileage into account, or the fact that the car had recently had repair or body work done? These are factors which should be remarked upon.
Remember that the report will frequently be incomplete. Many things can get overlooked, whether this is through corner-cutting or general error, but you can make sure that your insurance company can't ignore it. Be polite, but firm, and chances are, just knowing about the report can give you leverage. So few people actually contest the figure that they are given, and this can make your own company quite complacent!
You do have options when it comes to having your vehicle declared a total loss, so make sure you take them!
Source by Hector Quiroga, J.D.