Auto Insurance Advice

Q: My auto insurance company told me my car was totaled. What do I do?

A: "Totaled" means that the damage to your vehicle is greater than the vehicle's value. This means that your auto insurance company will not pay to fix it, and will instead give you a check to purchase a replacement car.

However, the money that the insurance company will give you will be based on the vehicle's current value, not the acutual cost to purchase a new vehicle. In theory, this should mean that you could take that check, go to a used car dealer and purchase an identical vehicle in identical condition.

Unfortunately, many auto insurance companies understimate the value of your vehicle. Many people don't realize that they can sometimes negotiate a higher settlement. So, what should you do if you think that your car was worth more than the insurance company is offering? You should:

Collect listings (newspaper, online, etc) in your area for similar vehicles
Consult information services that provide estimates of used car values such as Kelley Blue Book or Edmunds
Consult an appraiser - you can sometimes find impartial experts that can assess the value of your car, and even negotiate with your insurance company.