The process of trading the total loss is simple. Legally, a vehicle is considered a total loss if the cost of repairs and supplementary claims equals or exceeds 75% of the fair market value, which, once again, can usually be negotiated. One of the first steps in negotiating the settlement of total losses is to determine the value of your vehicle. This will depend on numerous factors, such as the year, make and model of the vehicle, any improvement in body style, the number of miles the vehicle travels and its physical condition.
Proper research, documentation, and setting reasonable expectations should result in a fair agreement. If you think you are not receiving a reasonable offer after an attempt at negotiation, contact your agent for guidance. In some states, the Office of Consumer Affairs may provide additional advice. Drivers should always negotiate with insurance adjusters to ensure that they receive the correct value for their claim.
You can file a lawsuit against an insurance company for the full value of a car by sending the insurer a counteroffer along with evidence that justifies the value of your car. If your state doesn't have a specific total loss threshold, your vehicle will be considered a total loss if the cost of repairs plus the residual value is greater than the car's actual cash value (ACV). If they offer you a lower value than expected, you can negotiate directly with your claims adjuster.
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