Expert: Charlie Barone - 5/10/2009

Question
insurance company offering low amount in total loss of vehicle. I am in California. where can I seek help?

Answer
Most auto insurance policies sold in the US are actual cash value (ACV) based. That is, the insurance company owes you the cost to replace your car with one of like, kind and quality, plus applicable sales tax and license transfer fees. Depending which insurance company you are dealing with (your own or the policy of another party liable for the loss), you are free to decline their offer of settlement and demand that they show you where a car is that you can replace yours with. Do it in writing and demand a written response.

If you are dealing with your own insurance company you have the option of enacting the appraisal clause, which allows you to select an independent appraiser and the insurance company selects their own. The two appraisers then select an umpire to make a binding decision based on the two appraiser's findings. You and your insurance company bear the cost of your appraiser and a share of the umpire'd fee. You can notify your insurer of your decision to enact the appraisal clause in writing.

To find an appraiser look in your local yellow pages under automotive appraisers or go to www.ican2000.com and look for an appraiser under local help.