If you have recently been in an accident where your car was deemed as totaled, it is important that you do the necessary research to determine your next course of action. Many take the easiest route and sell their damaged vehicle to their insurance company without any questions asked. While your car may be classified as “total loss,” your car may still be operable. The definition of total loss varies by state and typically means the repairs are more than or equal to the value of your car. Before selling to your insurer, be sure to negotiate. Your insurance company won’t be offended. Take these 5 helpful tips into consideration to get the most out of your vehicle:
- Your insurer will compare your vehicle to the value of five other vehicles that are “comparable” to yours. Ask exactly which cars they are comparing and check that the model and mileage is the same, and that there are no varying accessories. Doing your own research is crucial in this step.
- Many insurers will estimate the value of your car without considering the extras even though those extras make a difference. Show your insurer any receipts of any aftermarket products and check which extras you bought from the dealer by running the VIN number of your car through a dealership report.
- If your insurer submits an offer that doesn’t account for all costs of buying an equivalent car, you will have to pay a sales tax and registration fee to place your new car. Depending on the state you live, compensation for sales tax and fees is required under 34 state laws. You may just have to remind your insurer of this.
Saying goodbye to a totaled car can be devastating, especially if you end up on the short end of the stick after it is all over. It is important that you conduct the necessary research and consult a professional to make sure you don’t make any mistakes that could cost you.
Mike Leonard Insurance Agency is available to help you with all of your auto insurance needs. Contact us today to get an auto insurance quote.