Expert: Ron Cercone - 4/14/2009

Question
The car was value at $7,000.00.However www.NADA.com appraised it at 7,250. The insurance company said that they value the non damaged parts and they take out some more money and then the deductible. So what we are getting back is $ 5,625.00. I feel as if I am getting low balled or is this how the system works?

Answer
Hello Derek,

You are entitled to what the market value of the car was in your local market area prior to the accident. And if you keep the car, then the insurer can deduct the salvage value of the wrecked car from the settlement. One way to value your car/truck is to start with a vehicle in "retail, dealer lot condition", then adjust for mileage and may "old damage" on your vehicle. Deductions are not necessarily the full cost of repairing any old damage. The older the vehicle, the less the percentage of deduction.

Yes, it sounds like you are being low balled. And yes, sadly that is how it works for most insurers: "low ball the settlement and come up a little for the squeaky wheels".

FYI, NADA tends to be the book of choice for many insurers, if a book has to be used, because NADA is usually on the low side for cars. Try using the Kelley blue book website valuation, just for the fun of it.

The insurer probably used CCC or ADP, computer appraisal services. Their reports are usually very beautiful and lengthy, full of words the average person can't figure out.

Anyway, if you want an entire eBook on how to maximize every aspect of your total loss auto claim, go to the product page, automobile section at http://www.uclaim.com/ and look at the description of the eBooks on total loss auto claims, for either your own insurer, or the other drivers insurer.