How to Reach a Fair Settlement in a Total Loss Auto Claim
- 1). Check local dealers for vehicles of a similar age and model. This will give you a good idea of a reasonable valuation. It may be worth pursuing the matter only if the insurer's appraisal is considerably lower.
- 2). Read your insurance contract to find the agreed rules for an appraisal. A common set-up is that both parties can name an appraiser, with the two appraisers working together to resolve any disparity in their valuations. Another possible clause is that the insurer must base the valuation on at least two comparable vehicles rather than just one.
- 3). Read the appraisal document. It will often contain details of damage or wear-and-tear to your vehicle that was in place before the crash, which will lower the appraisal. Check that these details are correct and that none was the result of the crash. Check also that the appraisal includes any improvements you made to the vehicle that increased its value above that of comparable vehicles.
- 4). Contact the insurer to dispute the appraisal, stating your reasons for disagreeing and your estimate of the actual value. Follow the formal process of your policy if one is stated, but don't hesitate to simply write a letter even if the policy does not address the possibility of disputing an appraisal.
- 5). Calculate the amount in dispute if the insurer rejects your dispute or offers a revised figure. Only in cases where the difference between your take on a fair appraisal and the money on offer is substantial is it likely to be worthwhile hiring a lawyer and taking the matter further.