What Should I Do About My Insurance Payout?
I came across a post that inspired me to seek some advice: https://www.reddit.com/r/Insurance/s/O7vPncEyka
In December 2024, I was in an accident that resulted in my car being totaled. Unsure of my next steps, I reached out to a lawyer for help in securing enough funds to finance or purchase a used car.
As a college student, I’ve been struggling to get around. Fortunately, I’ve been able to borrow a car from a family member, but I need a more permanent solution. In February, the other driver’s insurance finally reached out with their valuation, which I expected to be between $3K and $4K.
They offered me $3,508 for my 2005 Volvo S60 (with 136K miles). I conducted my own research and found similar vehicles with comparable mileage to serve as supporting evidence for a reevaluation. However, they only raised their offer by $125, claiming it accounted for a new comparison and the maintenance I’d performed.
Here’s the problem: they are using cars with significantly higher mileage (around 40K more) to support their offer. When I pointed this out, they refused to consider my comparisons because they’re “outside my local market.” This logic seems flawed—if there were no similar cars within 500-1000 miles, would they seriously assert my car’s value is $0?
Right now, I’m just trying to secure enough funds to buy a basic used car for transportation, but I don’t want to let them take advantage of me. Should I keep fighting for a better payout, or should I just accept the $3,633 they’ve offered and move on? Any advice would be greatly appreciated!
TL;DR: My insurance totaled my 2005 Volvo S60 (136K miles) and initially offered $3,508, then increased it by $125 after I provided comparable vehicle data and maintenance records. Their valuation is based on cars with 40K more miles, and they won’t acknowledge my comps because they’re “out of my area.” Should I continue to push for a higher offer or just accept the $3,633 and move on? What should I do?
It sounds like you’ve been navigating a challenging situation with your insurance payout. Here are a few steps you can consider taking:
Evaluate Your Needs: Determine how urgently you need the funds. If you can manage without a car for a little longer, you might have room to negotiate further.
Gather More Evidence: Continue collecting evidence for your case. Look for recent sales of similar vehicles in your area, especially those with similar mileage. This will strengthen your argument if you choose to negotiate again.
Present a Counteroffer: Prepare a detailed counteroffer based on your findings. Highlight the specific comps you found, detailing their prices and conditions, while noting the mileage similarities. Stress why your car’s condition and maintenance justify a higher valuation.
Local Market Consideration: While the insurance company may claim your comps are from outside your market, push back on this. Explain that the value of a car should reflect a broader market understanding and the scarcity of similar vehicles.
Involve Your Lawyer: If you’re working with a lawyer, keep them in the loop about your negotiations. They may have additional strategies for advocating for a fair payout.
Consider Other Options: If negotiations stall, explore other avenues. Check local regulations or consumer protection resources that might help you understand your rights better.
Weigh Your Options: Factor in the time and stress of continuing negotiations against the potential payout. If the difference in offers isn’t significant and you need the money soon, taking the $3,633 may be the best option.
Ultimately, it’s about balancing your immediate needs with your desire for a fair payout. Good luck, and I hope you find a resolution soon!