Expert: Claims Guy - 11/9/2011

Question
I am going through a Total Loss claim.  My insurance comapny said my car is a total loss.  I don't agree with them because my car is a brand new car.  I have had it for only 6 months.  Maintained every 5000 miles.  It only has 14,500 miles.  The estimated cost to fix it is $8800.  My car is still worth atleast $20,000.  so I don't understand why they would say it's a Total Lost.  Now they are offering $19,000 on my car and I still owe $21,600 on it.  The Total Loss Adjustor said that I can't negotiate the price, and if I don't signe the document within 10 days that they will either pay that amount to the lien holder or not pay me at all and drop the claim.  Could you help me and give me some advice and let me know what my rights are.  The adjustor is basically saying that I don't have any and what they say goes.  I still don't understand why they would say it's a Total Loss cus clearly $8800 is not even half of the value of my car.  Please help me. I tried getting help from The Texas Department Of Insurance and basically no help unless I want to file a complaint. I really don't know what to do and I don't want to get bullied by this adjustor. I sent them comparibles that wer worth between $20,000-$$23,000 but they don't even want to budge.  Please help.

Answer
I also don't understand why this would be a total loss based on the numbers you provided.  I would start by complaining to the adjuster's supervisor.  if this does not work, complain to the dept of insurance.  This might spur some action, especially if they know they are wrong.

Keep in mind that the loan balance is irrelevant to determining whether the car is a total.  If the cost to repair is close to or exceeds the value, then it is a total.  In some states, the law requires that insurers total a car at 75% of value.  But I've never heard of less than 50%.