Navigating Salvage Value Negotiations: A Guide
I recently experienced an accident where the other party was deemed fully at fault. The initial estimate of damages is around 90% of the fair market value according to KBB for a private sale, so I suspect they may declare the car a total loss. This assessment is preliminary and doesn’t account for the additional inspection and potential rental car costs.
I have a strong attachment to my vehicle and have invested more than its current value in maintenance alone.
If they present me with a total loss offer, what are the best resources for determining salvage value? While the car has some minor damages, I’d prefer to keep it as a beater.
Are there any other useful resources beyond monitoring auction sites like Copart? Additionally, do you have any tips for negotiating with the insurance company?
When it comes to negotiating salvage value with the insurance carrier, here are some steps and resources that might help you get a fair agreement:
Research Current Market Value: Use multiple sources to determine the value of your car. Websites like Kelley Blue Book (KBB), NADA Guides, and Edmunds are great starting points. Make sure to look at private party sales for cars similar to yours in terms of condition, mileage, and features.
Collect Documentation: Gather any documentation that supports your claim, such as receipts for maintenance and improvements you’ve made. This can help justify your desired salvage value and show the insurance company that your car has additional value beyond the standard market assessments.
Check Local Listings: Look at local classifieds, online marketplaces like Craigslist or Facebook Marketplace, and auctions to find comparable vehicles in your area. This will provide a more accurate picture of what similar cars are selling for.
Use Copart and IAAI: While you mentioned looking at Copart, make sure to also check IAAI and other salvage auction sites for similar vehicles. This can give you a sense of what a similar vehicle might sell for at auction, which may help in negotiations.
Negotiate Firmly: When they make an initial offer, don’t just accept it. Be prepared to negotiate by presenting your research and justifying your counteroffer with your findings. Highlight the unique aspects of your car that may justify a higher salvage value.
Consider Professional Appraisal: If negotiations become complicated, you might consider getting a professional appraisal of your vehicle. An appraiser can give you a detailed report that underscores your vehicle’s value, which can be a powerful tool in your negotiations.
Get Everything in Writing: Once you agree on the salvage value, ensure that you get everything in writing, including the terms regarding keeping the vehicle if that’s part of the agreement.
Look for Help: If you’re feeling overwhelmed, consider reaching out to a local consumer advocacy group or an attorney who specializes in auto accidents for guidance.
By preparing thoroughly and utilizing these resources, you’ll be in a stronger position to negotiate the salvage value effectively. Good luck!