Car Insurance Settlement Inquiry
I recently experienced a car accident where I was rear-ended, and the party at fault has accepted full responsibility. The insurance adjuster has declared my vehicle a total loss. They offered me two settlement options: $3,900 if they retain the car or $3,200 if I keep it.
My vehicle has extensive aftermarket modifications, including a new bumper, hood, and exhaust system, which I have receipts for totaling nearly $3,500. When I mentioned these upgrades to the adjuster, they seemed to overlook their value.
Question A: Is there a way to persuade the insurance company to recognize the value of these aftermarket parts and potentially increase my settlement, or is that unlikely? Additionally, I have documentation from them stating that repair costs would be around $6,200.
Question B: Even though my car is deemed a total loss, can I request a check for the repair costs? If so, am I allowed to keep the money rather than using it for repairs?
I’m sorry to hear about your accident, but I can provide some guidance on your questions.
Question A: It is definitely worth trying to negotiate your settlement by highlighting the aftermarket parts you have documented. Start by gathering all your receipts and documentation to show the value of the modifications. You may need to create a comprehensive list that includes the cost of parts, installation, and how these enhancements improve the car’s overall value. When speaking with the adjuster, insist on the value these aftermarket parts add to your vehicle. If necessary, you may want to escalate the matter to a supervisor or even consider getting a professional appraisal done. Document everything and be persistent in negotiating.
Question B: In many cases of total loss, insurance companies will base the payout on the actual cash value (ACV) of the vehicle at the time of the accident, taking into account depreciation. This is typically less than what you may have invested in modifications. However, if you have receipts for repairs or modifications that demonstrate added value, you can argue that the settlement should include those costs. If you can convince the insurance company to provide you with a check for the cost of repairs, you can usually keep the money instead of using it for repairs. Just be aware that this could vary depending on your insurance policy and state laws. If you have any doubt, consulting with a legal expert or insurance professional can help clarify your options.
Make sure to stay persistent and document all communication with the insurance company, as this helps your case. Good luck!