A totaled car insurance offer is almost always lower than it should be, and it can often be negotiated. Come in with your car’s Kelley Blue Book value and a list of the upgrades you’ve made, and if the insurer still lowballs you, consider an independent appraisal.
If your car’s been damaged, whether from a crash or a tree falling on it or any number of the things that can go wrong, you’re probably expecting your insurance company to pay for it. If they determine that the cost of the repairs exceeds the value of your vehicle, however, they’re likely just going to declare it totaled and offer you the amount of money they think the car was worth before the crash instead.
What the insurance company is not going to do is give you enough money to replace your damaged car with a comparable new one. That’s just not how insurance companies work.
It’s also not in the insurance industry’s business model to appraise the value of your pre-damage car very highly. Almost always, the amount the insurer offers in these situations is far lower than it really should be. The good news is that these offers can often be negotiated. For the best leverage during a negotiation, make sure you come in armed with information.
Documents to Gather Before Negotiating
- The current value of your particular model on the Kelley Blue Book website
- An inventory of any upgrades you’ve made: new tires, a higher-end stereo system, good quality wheels, a security system, and so on
- As much information as you can provide about those upgrades, such as receipts
The more information you have to show that your car is worth its Blue Book value, or more, the more likely the insurance company is to improve its offer.
If they continue to lowball you, or the value of your car was unusually high, you might want to hire an independent appraiser who can provide a detailed report supporting a higher offer.
If your car was stolen rather than wrecked, that’s a different kind of claim. Read Stolen Car Insurance Claim Denied: Next Steps.
Related Reading
Questions About a Total-Loss Insurance Offer
Greer Law has helped clients all across Colorado recover the damages they were owed by their insurance companies for car crashes and other events that resulted in their cars being totaled. We regularly negotiate with insurance companies and know all the tricks they’ll use to keep you from walking away with the money you’re due.
Don’t accept a quick offer from an insurer before you’ve talked with us! We can be reached at 303-331-6460, or by using our contact form. Schedule a free, confidential consultation today. For more, check out attorney Marlo Greer’s thoughts on lowball insurance offers for totaled cars on TikTok.
