Can I negotiate with the insurance company on the value of my vehicle?

Not only can you negotiate with the insurance company on the value of your vehicle, but sometimes it is necessary to protect your rights. Suppose you are getting new insurance on a vehicle with significant custom work, making it more valuable than the standard model.

In that case, you will want to negotiate for appropriate coverage. You may need to search for the best car insurance company that insures modified cars.

When you carry the proper insurance, and your vehicle is totaled in an accident or is not recovered after being stolen, the insurance company will give you a settlement offer based on their calculation of the vehicle’s value.

How Insurance Companies Value a Vehicle

Insurance adjusters use company policies to value a vehicle and may not reveal these policies. “Totaled” means the insurance company states the car is a total loss.

The value is called the actual cash value, which is what the vehicle would sell to another person. The factors considered are the vehicle’s make, model, and year. Also considered is the mileage, if the car was in any other accidents and its condition.

Typically, lower valuation estimations are used when paying a claim, and higher valuations are only accepted when underwriting a new insurance policy.

Negotiating if the Insurance Company Understates the Vehicle’s Value

Suppose you seek to insure a vehicle for its full value, and the insurance company offers a limit that is too low to cover the full value. In that case, you can negotiate an increase in coverage or seek another insurance company to insure the vehicle’s full value.

Knowing will help you shop for alternative insurance.

Suppose you get a settlement offer for a totaled or stolen vehicle that you think is less than the vehicle’s cash value. Using tips to negotiate the best settlement for my totaled car, you can negotiate with the insurance company to increase the offer. It helps to provide evidence to support your claim of a higher valuation.

Evidence might be comparable vehicles listed for public sale that are the same year, make, and model with similar features. Alternatively, you might use industry car valuation resources such as Kelly Blue Book for valuation references.

Getting an Appraisal

Disputes over the value of a vehicle may sometimes be settled by getting an appraisal from an unrelated third party that is acceptable to you and the insurance company.

Seeking Legal Counsel

You have the right to a fair valuation of your vehicle if it is totaled or stolen. If the amount of your claim is significant and the insurance company makes a lowball offer, you may do better by being represented by qualified legal counsel.

Insurance adjusters often try to make claims payments as low as possible to save the insurance company money.

A Final Word on Negotiating with the Insurance Company on the Value of Your Vehicle

Some circumstances require negotiation with an insurance company regarding the valuation of a vehicle. If the car has special custom features or other unique characteristics, you may have to negotiate a higher value for proper coverage.

Not every company is the best car insurance company for paying claims. If you disagree with the valuation used by an insurance company when a settlement is offered, you do not have to accept the amount offered, and you can ask for more.