Total Loss and Unsure of Next Steps
I experienced a rear-end collision in my 2022 Nissan Altima, which has 49,000 miles, on February 21, 2025. After some slick roads due to recent snow in Oklahoma, another car hit me from behind. My trunk won’t close now, and there’s damage to the back bumper, but luckily, the car is still drivable. I just finished paying it off last month — so I owe nothing on it.
The other driver has Geico, and they referred me to a collision center where I dropped my car off on February 24. Later that day, I received a call stating that my car is a total loss, and they’re offering me $17,343. Since this was my first car and I just paid it off, I’m eager to keep it if possible.
What steps should I take? How should I approach the insurance company? If I want to negotiate, will they offer me the $17k to repair it, or would the amount be lower? Also, if I choose to accept the settlement, is there a way to negotiate the actual cash value (ACV) to get a better offer? I’ve seen similar models with comparable mileage listed for about $18,000 to $20,000. I plan to call the insurance later today but feel unsure about what to say. Any advice would be greatly appreciated!
I’m sorry to hear about your car accident; that sounds really frustrating, especially since you just paid off your Altima. Here’s how you can approach this situation:
Understand Total Loss: When an insurance company declares a car a total loss, it typically means the cost to repair it exceeds a certain percentage of its value. In your case, Geico is offering you an amount based on the Actual Cash Value (ACV) of your vehicle at the time of the accident.
Keeping the Car: If you want to keep the car, you can negotiate with Geico. Typically, they will deduct the salvage value of the car from your settlement offer if you decide to keep it. You can ask them how much they estimate that salvage value to be. If they are willing to give you the full $17,343, that would be great, but it’s common for them to reduce the payout.
Negotiating the ACV: You can definitely negotiate the ACV if you believe the offer is too low. Collect evidence to support your case:
Be prepared to discuss any unique features of your car that might add to its value.
Call Preparation: When you call:
Present your findings clearly, stating that you’d like them to reconsider the offer based on your evidence.
Consider All Options: While you might be attached to your car, think about whether keeping it and repairing it is truly the best option. Sometimes, taking the settlement and using it toward a new car can be a better financial choice, especially if repair costs are high.
Ask Questions: Don’t hesitate to ask questions during your call. Clarify any terms you’re unsure about and discuss the next steps, whether you choose to accept the settlement or potentially negotiate further.
Take your time weighing your options, and good luck with your call!