Getting a Settlement After Your Car is Totaled

Have you been in a car accident? Was your car damaged by a major storm or other natural act? Perhaps your car was stolen. In all of these cases, you may be concerned about the amount of money you will receive from your car insurance company in order to repair the car. This is particularly true when your car is “totaled,” as you may be unhappy with the amount of money your car insurance company gives you for your car. But, is there really anything that you can do about it?

What Does it Mean When a Car is “Totaled?”

When your car is damaged, an appraiser will come and look at your car and determine how much money it will take to repair the vehicle to its original condition. The appraiser will then compare this amount to the total value of the car. If the amount of money it will take to repair your vehicle is more than the value of the car, it is considered to be “totaled.” In this case, you will receive compensation in the amount of the value of the car rather than in the amount of the damages.

Since determining whether or not a car is totaled involves assessing the actual value of the car, the amount of damage required to total a vehicle varies. If you have an older car that is of little value, for example, a small accident may cause enough damage to total the car. If you have a more expensive vehicle, on the other hand, it may take an extensive amount of damage for the car to be considered totaled.

Making You Whole Again

When your car is totaled in an accident, your insurance companies obligation is to make you “whole” again. This means that you are supposed to be left in approximately the same condition you were in before the accident took place. In order to do this, your insurance company will write you a check that is worth the actual cash value of your car. Of course, before writing the check, your deductible will be removed. Therefore, if your car’s actual cash value is $10,000 and you have a $1,000 deductible, your insurance company will write a check for $9,000.

If you are unhappy with the amount of money your car insurance company plans to give you, it is possible that you can negotiate a higher settlement. In order to successfully negotiate a higher settlement, however, you will need hire an independent appraiser. If this appraiser values the car at a higher price than the insurance company’s appraiser, you may be able to receive a higher settlement. At the same time, you should keep in mind that you will likely have to pay the independent appraiser out of your own pocket and there are no guarantees that you will receive a higher settlement than the one that was initially offered.

Article Source: http://www.a1-articledirectory.com

Shannon Kietzman is a freelance writer and an authority on car insurance issues. She helps others learn the basics of car insurance so they can make proper and informed decisions when choosing the coverage that is right for them.

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