Seeking Guidance: State Farm’s Lowball Total Loss Offer & Rental Car Cutoff—What Are My Options?
On February 10, while driving on a roadway during the day and not exceeding the speed limit, a truck failed to stop at a sign and collided with me. My 2017 Jeep Grand Cherokee was utterly totaled—tow truck drivers even remarked it looked like I hit a light pole or tree. The airbags deployed, and the impact was significant.
Fortunately, my boyfriend (who was a passenger) and I walked away without serious injuries, which is incredible given the state of my vehicle. The other driver was friendly and accepted responsibility without hesitation. They were ticketed, and their insurance—State Farm—was meant to handle everything.
Initially, State Farm seemed cooperative; they provided me with a rental and assured me it could be extended if necessary.
Now, over two weeks later:
- They offered me a total loss settlement of $16,002, which I consider alarmingly low.
- After presenting $4,000 in recent maintenance documentation, they only increased the offer by $184, bringing it to $16,186.
- According to KBB, my car’s value exceeds $17,000, and considering its excellent condition, premium tires, window tint, and maintenance history, I expected at least that amount.
- They are terminating my rental car on February 28, which feels like pressure to accept their low settlement before I find a replacement.
I wasn’t prepared to buy a new car anytime soon since my Jeep was fully paid off, and I want to ensure I’m receiving the maximum payout possible.
I have a few questions:
- How can I negotiate for a higher payout? What steps should I follow?
- Do I need to involve a lawyer? If yes, what type of attorney should I consider—an accident lawyer?
- Is it legal for State Farm to cut off my rental so quickly? Shouldn’t they cover it until I secure a replacement vehicle?
- Can my own insurance (Geico) help cover a rental until I acquire a new car?
-
Would pursuing an injury or mental distress claim increase my payout?
-
We visited a doctor the day after the accident, and I have that documented.
- I sustained some bruises and scrapes, missed a day of work, and the doctor suggested spinal X-rays, which I declined.
- Would a note from my workplace or my therapist assist in strengthening my case?
This is my first accident, I’m almost 38 with a clean driving record, and I’m unfamiliar with the process. I want to ensure I’m not being misled or receiving a low settlement without fighting for what I deserve.
Any advice or insights would be greatly appreciated! 🙏
I’m really sorry to hear about your situation, and it’s great to know you and your boyfriend are okay after such a serious accident. Dealing with insurance companies can be frustrating, but here are some steps and advice to help you navigate this challenging time:
Push Back on the Payout: Yes, you can absolutely negotiate for a higher payout. Gather all your documentation, including the maintenance records, KBB value, and any comparable sales in your area to support your case. Write a clear and concise letter outlining your reasons for requesting a higher offer, emphasizing the custom upgrades and superior condition of your vehicle. Be polite but firm in your request.
Consider Legal Help: If negotiations don’t yield the results you’re looking for, it’s wise to consult with an attorney who specializes in auto accidents or insurance claims. They can provide specific guidance based on your situation and help you navigate negotiations with the insurance company or even escalate matters if necessary.
Rental Coverage Duration: Insurance companies typically cover rental cars during the time it takes to determine liability and finalize a payout. However, many have limits on rental coverage. You can ask State Farm for clarification on their rental policy and emphasize your need for a vehicle. If they are not helpful, it may be worth challenging or negotiating.
Your Own Insurance Coverage: Check your own policy with Geico; some policies have rental reimbursement coverage that may aid you while you’re searching for a replacement vehicle. Contact your agent to get clarity on your options.
Injury/Mental Distress Claims: Given that you went to the doctor and have documentation of injuries, this could potentially bolster your case for a higher payout. Consider consulting your doctor about your injuries and whether a report would be beneficial. A letter from your employer regarding missed work may also help demonstrate the impact of the accident on your life.
Lastly, document everything and keep communication records (dates, who you spoke with, what was discussed) to support your claims. You’re doing the right thing by seeking out advice, and arm yourself with as much information as possible. Stay firm and don’t feel rushed to accept any offers until you feel confident in your negotiations. Good luck!