What happens if you get into an accident and your car insurance company presents you with a repair cost estimate higher than what the car is worth? From the insurance company’s perspective, the car is deemed a total loss if the cost of repairs exceed replacement of the car. It is then the adjuster’s obligation to provide you with a settlement amount for the cash value of the car minus the deductible. How car insurance quotes are calculated depends on the insurance company. Some companies consider a vehicle to be totaled when the repair costs exceed 51% of the car’s actual cash value while others consider it a total loss at 80% of the value.
Disputing the Insurance Company’s Findings
The payment you receive should be adequate for purchasing a car comparable to the one you are replacing. Having your adjuster explain to you how the compensation for your car insurance claim was determined will help you conclude whether the assessment is fair. If you believe the cash value to be unwarranted, explain the reasons why to your adjuster and perhaps you can negotiate a mutual settlement. Receipts you may have for special equipment installed on the car or for specific maintenance and repairs would also be helpful.
If you feel like a compromise is not possible and you do not agree with the cost analysis of the claim, most car insurance policies carry an insurance appraisal clause that allows an individual to dispute the insurance company’s claim by way of an independent appraiser. Likewise, the insurance company will hire their own independent appraiser, and the two appraisers will review the gathered material and try to resolve the differences. If the two independent appraisers cannot agree on certain items, a selected arbitrator will make a ruling on the decision. The dispute ends with a final resolution being made between the arbitrator and one of the independent appraisers.
Understanding Your Insurance Policy
With any luck you will never have to file an automobile claim, but if you do, understanding your car insurance coverage before an accident occurs can save you a lot of heartache if you are in a situation where you need to file a claim.
Moreover, it is more amiable to review the ins and outs of your insurance policy with your agent beforehand when you are not in the middle of an unpleasant claim. The car insurance you purchase is after all designed to protect you and provide peace of mind.
Source: Jersey Car Cash
