Detroit Total Loss Car Claim: Am I Getting The Maximum Amount Available From My Insurance Company?

Insurance companies have a reputation for bullying their own insureds into accepting low-ball payouts on total loss claims. If you believe your insurance company is doing this to you, there are several things you can do to fight back. And we can help.

A total loss is where your vehicle sustained such significant damage in a crash that it is more expensive to repair it than to replace it. In Michigan, a vehicle is considered a total loss when the estimated cost of repair (including parts and labor) is equal or greater than 75% of the vehicle’s pre-crash actual cash value.

When this happens, your insurance company will calculate the actual cash value of your vehicle and provide an appraisal report. Don’t accept this report on its face as insurance adjusters are notorious for missing key information such as upgraded trim levels, optional equipment, upgrades you’ve made, and the condition of your vehicle prior to the crash. They also tend to overlook costs you will incur for sales tax, title fees, and registration and license expenses for your replacement vehicle You should scrutinize this report and be sure to point out any discrepancies.

If you are not comfortable fighting with an adjuster, consider hiring a claims negotiator. At Michigan Auto Law, we work closely with Scott Watson, an experienced claims negotiator who will help you get substantially more money for your vehicle if your insurer is trying to pressure you to accept a low-ball settlement offer. Scott will scrutinize your appraisal to make sure nothing has been overlooked, including expenses related to your new vehicle. And there is no risk as Scott only receives compensation if he recovers more than what you’ve been offered for your total loss car claim.

My car is totaled but my insurance company is offering less than market value. What can I do?

If you were involved in a car crash that left your vehicle totaled, but your insurance company seems to be low-balling you, don’t despair. There are steps you can take.

First, be sure to scrutinize your insurance company’s appraisal report as it’s not uncommon for adjusters to leave out important factors. If you find any discrepancies, gather supporting documentation and let your insurance company know of their oversights.

If you’re not comfortable doing the negotiating yourself, you can hire an experienced claims negotiator to do it for you. And you only pay if the negotiator recovers more than the offer you’ve received.

How does my insurance company determine whether my vehicle is a total loss?

Under Michigan law, a vehicle is considered a “total loss” when the estimated cost of repair (including parts and labor) is equal or greater than 75% of the vehicle’s pre-crash actual cash value.

If your insurance company considers your vehicle a total loss, it will use a “total loss payout calculator” to determine your offer. The actual cash value of your payout is determined by taking your vehicle’s pre-crash market value and deducting for depreciation from the time it was new.

How do I know if my insurance company’s appraisal report is accurate?

It’s not unusual for an insurance adjuster to overlook important factors such as your vehicle’s trim level, any optional equipment you added, the actual pre-crash condition of your car, and/or any upgrades you’ve made.

It’s important that you carefully scrutinize this report to make sure it’s accurate and complete. If you notice any discrepancies, contact the adjuster right away and point them out. Have supporting documentation available in the event it is requested.

Can I recover costs associated with my replacement vehicle?

Yes, you can and should recover costs you will incur for sales tax, title fees, and registration and license fees related to your new vehicle. Be sure to check and make sure your insurer’s total loss offer has accounted for these expenses. If it hasn’t, call them and be ready to provide receipts and documentation.

How can a claims negotiator help me get the actual value of my totaled vehicle?

Fighting with a claims adjuster can be intimidating. They do this for a living and most of them are good at bullying you into a less than satisfactory settlement.

If you plan to challenge your insurance company’s appraisal of your totaled vehicle, you should consider working with an experienced claims negotiator who has the skill set and reputation needed to get you the amount you are truly owed after a total loss crash.

At Michigan Auto Law, we have partnered with Scott Watson, the owner and Chief Auto Claims Negotiator of Claims Plus. Over the past decade, Scott has helped more than 1,300 individuals like you recover significantly more on their payouts than they would have without him. And like us, he never takes a fee unless you get more. If you’ve been low-balled by your insurance company and want to fight for more, reach out to Scott today. He’s here to help.