How to Fight Your Insurance Company Over a Totaled Car in 2024 (Expert Guide)
After an accident, knowing how to fight your insurance company over a totaled car is crucial, as 60% of drivers feel underpaid for total loss claims. If your payout seems low, negotiate for more or buy a totaled car back from insurance. Learn how to buy a totaled car from an insurance company here.
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Daniel Walker
Licensed Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Insurance Agent
UPDATED: Nov 1, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Nov 1, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
On This Page
After a major accident, you might find yourself facing the frustration of a lowball offer for your totaled car. Understanding how to fight your insurance company over a totaled car is crucial for securing a fair payout.
This guide will walk you through the steps to negotiate a better settlement, including how to buy a totaled car back from insurance if you choose. Learn how to navigate this process effectively and make sure you get what you’re entitled to.
After a major accident, you might need to challenge your insurance if your car is totaled. You could deal with undervaluation or poor repairs. This guide offers tips on negotiating and making informed decisions.
Before learning more about what to do after totaling your car, save money by comparing online car insurance quotes. Enter your ZIP code into our FREE quote tool to find affordable car insurance rates now.
- Challenge lowball offers and negotiate for a fair settlement
- Buy a totaled car back from insurance to keep your vehicle
- Maximize your claim and ensure proper compensation
How Insurance Companies Determine the Value of a Totaled Car
If your insurance company wants to total your car, it likely came to this claim due to an assessment through a third-party assessor or adjuster.
What is car insurance for a totaled car?
The value appraisal is based on your vehicle’s condition or state right before the accident, rather than at the time of purchase. This is referred to as the actual cash value of your car.
When an insurer decides your car is totaled, it’s usually based on these factors:
- Your car cannot be safely repaired.
- Repairing the car costs more than the car is worth.
- State laws that require the company to call your car a total loss due to the level of damage.
If your car seems to be right on the edge (it would cost about the same to repair or replace it), an auto insurance company may err on the side of caution and declare it a total loss. This is to account for the likelihood of damage that’s not immediately apparent to the body shop.
This is called a total loss threshold. These percentages are based on the New Link Destination tal Loss Formula (TLF), which equals the cost of repairs plus the car’s scrap value. There are some states that use this formula, and there are others that set their percentage payouts.
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Navigating Auto Insurance After a Total Loss
Dealing with insurance not paying enough for a totaled car can be frustrating for drivers. The accident total loss value is determined by the insurance company, and it may not always align with what the vehicle owner expects. If you’re unsatisfied with the payout, engaging in an auto insurance total loss negotiation is often necessary to secure a fair value.
Understanding your auto insurance total loss options is crucial, including whether to accept the insurance payout, repair the vehicle, or negotiate a higher settlement with the auto total loss adjuster. Knowing the best way to total a car for insurance claims, such as properly documenting damages and loss, can also help in the claims process.
Ty Stewart Licensed Insurance Agent
In some cases, vehicle owners might explore options like the best way to total a car for insurance to maximize their claim benefits. Additionally, there is the option to buy a totaled car back from insurance, if you feel the car can still be salvaged or repaired, though this is often contingent on the terms set by the auto total loss adjuster. If you’re considering purchasing the vehicle again, you can buy a totaled car from insurance company at a reduced rate.
Beware, however, of being pressured into the forced use of preferred auto insurance repair shops, as this might limit your repair options and overall control in the settlement process.
The New Link Destination Total Loss Threshold in Your State
The automobile total loss threshold for all 50 states is:
| State | Total Loss Threshold |
|---|---|
| Alabama | 75% |
| Alaska | 70% |
| Arizona | 70% |
| Arkansas | 70% |
| California | 70% |
| Colorado | 100% |
| Connecticut | 70% |
| Delaware | 70% |
| Florida | 80% |
| Georgia | 70% |
| Hawaii | 70% |
| Idaho | 70% |
| Illinois | 70% |
| Indiana | 70% |
| Iowa | 70% |
| Kansas | 75% |
| Kentucky | 75% |
| Louisiana | 75% |
| Maine | 70% |
| Maryland | 75% |
| Massachusetts | 70% |
| Michigan | 75% |
| Minnesota | 70% |
| Mississippi | 70% |
| Missouri | 80% |
| Montana | 70% |
| Nebraska | 75% |
| Nevada | 65% |
| New Hampshire | 75% |
| New Jersey | 70% |
| New Mexico | 70% |
| New York | 75% |
| North Carolina | 75% |
| North Dakota | 75% |
| Ohio | 70% |
| Oklahoma | 60% |
| Oregon | 80% |
| Pennsylvania | 70% |
| Rhode Island | 70% |
| South Carolina | 75% |
| South Dakota | 70% |
| Tennessee | 75% |
| Texas | 100% |
| Utah | 70% |
| Vermont | 70% |
| Virginia | 75% |
| Washington | 70% |
| West Virginia | 75% |
| Wisconsin | 70% |
| Wyoming | 75% |
These estimates don’t consider auto loan or lease balances. They also assume you have collision coverage if you’re at fault or the other policy has basic coverage if you were not at fault.
Besides, you can collect the cost of sales tax, title, and registration in 34 states:
States Where You Can Collect the Cost of Sales Tax, Title, and Registration
| State |
|---|
| Alabama |
| Alaska |
| Arizona |
| Arkansas |
| California |
| Colorado |
| Connecticut |
| Florida |
| Georgia |
| Hawaii |
| Illinois |
| Indiana |
| Kansas |
| Kentucky |
| Maine |
| Maryland |
| Minnesota |
| Mississippi |
| Nebraska |
| Nevada |
| New Jersey |
| New York |
| Ohio |
| Oklahoma |
| Oregon |
| Pennsylvania |
| Puerto Rico |
| Tennessee |
| Utah |
| Vermont |
| Virginia |
| Washington |
| West Virginia |
| Wisconsin |
Even if you live in a state that doesn’t require this payment, you can ask.
Okay, so where are these numbers coming from?
How a Car’s Actual Value is Determined
The value, or actual cash value, of your car, is determined by your insurance company and its assessors long before you actually get into an accident. There are algorithms and market values. If you bought your car new or used as opposed to restoring a salvage vehicle, you could be entitled to more.
Even if the repairs were approved by a reputable organization, fair market value on a salvage car will always be lower. Other factors considered include auto accident law, the car’s make and model year, the condition it’s in, its miles, etc.
More than likely, the insurance company will reference databases (such as Kelley Blue Book) when assessing the value of your car.
Insurance Payout for a New Link Destination Totaled Car
You will likely get the amount equal to the valuation of the assessment. You can estimate this for yourself by taking the KBB value.
If your vehicle is in at least fair condition, count on deducting between 20 percent and 40 percent from that amount in the database. You should expect to receive an amount on the lower end of this spectrum.
Keep reading to learn more about how you can negotiate the total loss value assessment.
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Taking the New Link Destination Total Loss Settlement from the Insurance Company
When drivers disagree with insurance total loss claims, they don’t have many options. You can 1) take the car insurance payout, 2) try to negotiate (with hard evidence), or 3) get a lawyer involved. This doesn’t mean you have to take the payout. On the contrary, if you believe you should get more from your insurance policy, you can challenge the decision.
If your insurance is not paying enough for your totaled car, consider what your vehicle is worth and what you’re able to replace your vehicle with. Look up market values, and be realistic about the condition of your car.
Average Total Loss Settlement
| Car Type | Settlement Amount |
|---|---|
| Sedan (Compact/Midsize) | $5,000 - $10,000 |
| SUV | $10,000 - $20,000 |
| Luxury Car | $25,000 - $50,000 |
| Truck | $15,000 - $30,000 |
| Hybrid/Electric Car | $20,000 - $35,000 |
| Sports Car | $30,000 - $60,000 |
You can fight a bad appraisal or negotiate a total loss car insurance settlement, but how do you fight a total loss claim?
You need to come to your insurance company with your research. Show your driving history, how well you maintained the car before the accident, or that the repairs are not more than the vehicle’s value.
When looking at the repairs and costs to fix up your car, assessors compare it to how much your car is actually worth.
So if the cost to repair your car is more than 50 percent of your car’s value before the accident, the car insurance company will total your car. Some insurers will total vehicles as high as 80 percent. Explore the details in our review of “Does Progressive offer liability coverage?“.
Understanding Your Rights in a Total Loss Insurance Claim
When insurance is totaling your car, it’s important to be aware of the process and your rights. Sometimes, insurance companies make a low ball offer on a totaled car, which can leave drivers feeling shortchanged. In fact, many people turn to forums like Reddit discussion on lowball insurance offers for totaled cars to share their frustrations and seek advice.
If you believe insurance not giving enough for a totaled car applies to your situation, it’s crucial to review your policy and state laws. For instance, total loss car insurance settlement in Arizona and total loss car insurance settlement in Illinois may differ, so knowing your state’s specific guidelines can help you advocate for a fair payout.
Jeff Root Licensed Insurance Agent
For Progressive policyholders, staying informed about the Progressive claim time limit is key to ensuring your claim is handled in a timely manner. Progressive total loss payout can sometimes seem low. If you’re dissatisfied with the settlement offer, getting another evaluation or negotiating further can help increase your chances of receiving a more reasonable settlement. To dive deeper into this topic, check out our “How do I appeal an car insurance claim with Progressive?“.
Insurance Companies and Your Car’s Total Loss
Your insurance company may declare your car a total loss after an accident, but you have the option of keeping the car if you choose. The amount you get from the insurance claim is limited. Insurance won’t pay you more than the actual cash value of your car, and that may not be enough to repair your car. You also need to consider the cost of a replacement vehicle while your car is being repaired. Depending on your policy, you may be limited if you choose to keep a total loss vehicle.
Most companies will ditch the car for auction. What should I do if my vehicle is deemed a total loss? If you let your auto insurer take the car and send it to auction, you can recoup your car at salvage value. This will impact the general use of your car. Until it’s certified with certain repairs, you won’t be able to register or drive it on roads.
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Buying Your Totaled Car at Auction
You should be able to keep your car after it’s been totaled. If not, the car insurance company will salvage the vehicle. You can recoup your car at salvage value; this will impact the general use of your car. It’s possible a vehicle with a salvage title can’t be driven as a daily car.
This means that you will need to rehab your vehicle completely and get it inspected before you could ever drive it again — all out of your pocket.
So, if you think your car is worth saving, or at least the repairs are less than 50 percent of the cost, you will need to learn how to negotiate with your company about your car’s total loss value. Want to dig deeper? “Car Repair Estimate: How to Get Money to Repair Your Vehicle” has got you covered.
Disagreements with a Total Loss Adjuster
If you’re trying to figure out how to negotiate or get more money from your car insurance company for a totaled car, always look at your collision coverage first. Do you have enough coverage to justify a higher payout? If not, it may not matter what the car is worth. You’ll only get a payout up to your policy limits.
If you do have the coverage, it may be as simple as a conversation. You can ask your adjuster to go over how they came to your estimate or to expand on their research and what models they were comparing your vehicle with. This also gives you the chance to make your case on the fair market value of your car. For more information, read our “If my car is declared a total loss, can I still drive it?“.
Negotiating with Your Insurance Adjuster
You may think of your insurance adjuster’s job as simple: they’re there to help you get paid. Unfortunately, an adjuster’s job is much more complicated than that. Much like an underwriter, their job is to assess the damage and protect the company from unnecessary loss.
You may be able to work with your insurance company, but you won’t be results just because someone likes you. You will need to fight with good evidence for your totaled car.
Follow the next section as it lays out tips and guidelines for how to negotiate a total loss insurance claim.
Read more: Full Coverage Auto Insurance
Negotiating Your Insurance on a Totaled Car
There are several ways you can get a better valuation of your car based on what you believe it is worth it. Many times, you don’t really need to fight your insurance company for your totaled vehicle, but remind them of what they need to do.
It’s just a matter of knowing the appeal process and who to speak to. The insurance industry can be intimidating, and the claims process is not necessarily better with cheap car insurance. Whenever you’re talking to an insurance provider, you should come in prepared with facts.
Appealing a New Link Destination Total Loss Claim
First, you should contact your insurance company to follow the right procedures and avenues to get your appeal heard by the right people. You won’t get a fair settlement just by talking to a call center agent. Even if you can convince your adjuster, they may need to get approval from another party.
Second, know that your car insurance company is obligated to pay out your vehicle’s actual cash value based on your agreed-upon policy coverage.
Here are other settlement tips to remember as you negotiate your total loss claim:
- If you’re fighting a low-ball offer, it could be considered unethical practices in your state. Some places protect policyholders from being forced to take substantially low total loss settlement amounts
- If you feel you’ve been forced into an appraisal, your car insurance company could be violating good faith agreements between itself and its client (i.e., you)
- Your car insurance company cannot withhold any benefits from you or delay payments
- Don’t forget to confirm your agreement in writing
- If you want to understand more about the damage, you can also call repair shops
These tips lead to the general idea that auto insurers must be fair the determination of the value of your car.
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Case Studies: Fighting Insurance Companies Over Totaled Cars
Case Study 1: Fighting for Fair Compensation
John Smith was involved in a major accident that resulted in his car being totaled. However, when he filed a claim with his insurance company, he felt that the offered settlement amount was much lower than what his car was worth.
John decided to fight the insurance company to obtain fair compensation for his totaled car.
By gathering evidence, documenting the pre-accident condition of his vehicle, and researching similar cars in the area, John was able to negotiate a higher settlement amount and achieve a more satisfactory outcome.
Case Study 2: The Importance of Knowing Your Rights
Sarah Johnson experienced a similar situation where her car was deemed a total loss by the insurance company. However, Sarah was aware of her rights as a policyholder and understood that she had the option to challenge the decision.
She consulted an independent appraiser, gathered all the necessary documentation about her vehicle’s condition and maintenance history, and compared its value to similar cars.
With strong evidence and a clear understanding of her rights, Sarah successfully negotiated a higher settlement amount, ensuring that she received fair compensation for her totaled car.
Case Study 3: Seeking Legal Assistance
Mark Davis found himself in a frustrating situation when his insurance company undervalued his totaled car. Despite his attempts to negotiate with the adjuster, he felt that he was not making progress.
Realizing the complexity of the situation and the need for expert guidance, Mark decided to seek legal assistance. He hired an insurance lawyer who specialized in personal injury cases to represent his interests.
With the help of the lawyer’s expertise and negotiation skills, Mark was able to achieve a significantly higher settlement amount and successfully fight his insurance company over the value of his totaled car.
Read more: Does Allstate offer comprehensive coverage?
Fighting the Total Loss of Your Car
If you feel you are being cheated by your car insurance company, don’t forget you can fight the total loss of your car. Independent appraisals have become more common. In many cases, it doesn’t need to get that complicated.
Make sure you keep a good record of your vehicle and compare its pre-accident condition to similar cars in the area. If you have questions about why they’re bringing in a lower value, don’t be afraid to ask.
Documentation of this and maintenance history will help you negotiate a fair deal for the settlement amount of your totaled vehicle.
Don’t forget you can sue your insurance company if you feel that you are being treated unfairly. If you feel this is the stage you are at, enter your ZIP code to get legal advice from someone in your area. Find out more by exploring our best car insurance companies for collision coverage.
Frequently Asked Questions
How to fight an insurance company over a totaled car?
Start by gathering evidence, such as repair estimates, market value comparisons, and vehicle condition reports. You can also hire an independent appraiser. Present your findings to the insurance company and be prepared to negotiate or escalate the matter to a legal or arbitration process if necessary.
Can an insurance company force you to total your car?
No, the insurance company cannot force you to total your car. However, they can declare the car a total loss based on repair costs exceeding a certain percentage of the car’s value. You have the option to dispute their determination or buy the car back from the insurer.
Use our free quote comparison tool below to find the cheapest coverage in your area.
How to negotiate with car insurance adjusters about a total loss?
Remain calm and professional while discussing the car’s condition and value. Provide documentation such as repair estimates, receipts, and comparable sales to support your claim. If the adjuster’s offer seems too low, counter with a higher figure and justify it with evidence.
Need more info? Head over to our can I change my State Farm car insurance coverage at any time? for all the details..
What happens if you don’t agree with a total loss adjuster?
If you disagree, you can negotiate, provide your own appraisal, or dispute the decision. In some cases, you can escalate the matter through the insurance company’s appeals process or pursue legal action if necessary.
How to get the most money from insurance for a totaled car?
Ensure that the insurance company accounts for all factors that increase your car’s value, such as recent repairs, customizations, or higher market prices in your area. Be prepared to present evidence of the car’s condition and negotiate for a higher settlement.
Do you have to accept the insurance offer on a totaled car?
No, you are not obligated to accept the first offer. If you believe the offer is too low, you can negotiate with the insurance company, provide additional evidence of your car’s value, or hire an independent appraiser to reassess the car.
How to dispute the value of a totaled car?
Start by collecting supporting documentation, such as recent repair receipts, market comparisons, and an independent appraisal. Present this information to the insurance company and formally dispute their valuation. If necessary, you can appeal through their internal process or take legal action.
For further details, refer to our “What If I Miss A Premium Payment—Do I Lose My Insurance?“.
Can a car with a salvage title be insured?
Yes, a car with a salvage title can be insured, but only with certain types of coverage. While liability coverage is often available, comprehensive and collision coverage might be limited or more expensive due to the car’s history.
Can a totaled car be fixed?
Yes, a totaled car can be repaired, but it may not be financially viable. If you choose to keep the car, the insurance company will subtract the salvage value from your payout, and the car will likely receive a salvage title, affecting its future value and insurability.
Can you appeal a total loss claim?
Yes, you can appeal a total loss claim. You’ll need to provide evidence that supports your appeal, such as an independent appraisal or proof that the insurance company underestimated your car’s value. Most insurers have a formal appeal process you can follow.
How do you negotiate with insurance on a totaled car?
Gather all relevant documentation, including comparable car prices, recent repairs, and any other information that supports a higher value. Present your case clearly and professionally to the insurance adjuster. Be willing to counter their offers and remain persistent if needed.
How does an insurance company value a totaled car?
The insurance company calculates the value based on factors like the car’s make, model, year, mileage, condition, and local market value. They often use third-party sources to assess the fair market value, comparing your car to similar ones sold recently in your area.
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Daniel Walker
Licensed Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.