How I Got the Insurance Company to Pay Me $750 More When My Car Was Totaled

In early 2020, weeks before the start of the pandemic, I was in a car accident near my home. While on my usual drive home from the grocery store, I was rear-ended by another driver.

Luckily, no one was seriously injured, but my almost 12-year-old vehicle had significant damage. After a thorough inspection, my car was considered a total loss. I'll share how I got the other driver's insurance company to pay me over $750 more than initially offered.

Some accidents result in a vehicle being totaled

The accident I was involved in resulted in visible damage to my car. However, I assumed the damage wasn't severe enough to be considered totaled. I was wrong.

When do insurance companies consider a car to be totaled? A vehicle may be determined to be a total loss if the vehicle can't be repaired due to safety concerns or if the expected repairs will cost more than the vehicle is worth. That's what happened to my car.

In my case, the other driver was at fault, and luckily, they had adequate auto insurance coverage. Because of this, their auto insurance company was responsible for paying me for the actual cash value of my vehicle. I planned to use this money to buy a used replacement vehicle.

The insurer sent me a settlement offer

While my vehicle was nearly 12 years old, I had been driving a Toyota with lower-than-average mileage, and it was in good condition before the accident. These facts benefited me when it came time to discuss payment with the auto insurance company.

An insurance representative provided me with a detailed report and a settlement offer. The settlement offer is the amount the insurer hopes the impacted driver will accept as reimbursement. In exchange for no longer having a drivable car, I'd walk away with a check.

The offer included a total settlement payment amount, inclusive of state tax. It came with a report highlighting research about the value of comparable vehicles for sale in my local area. The report also included details about the condition of my car.

I asked for more money because of recent repair work

I had replaced my tires not long ago and noticed the insurer had accounted for my tires being in excellent condition. But I also remembered that I had gotten some necessary parts replaced recently. I contacted the insurer with a copy of my repair bill to provide proof of the repair work.

The insurer returned with an updated report and a higher settlement offer. This was my first involvement in such a situation, so I took their second offer without question. I walked away with an additional $750 because I proved that my car was worth more than the initial estimates.

Don't be in a rush to accept the first offer

I'm glad I asked for more money. But I've since learned that I may have been able to dig deeper to get a higher payout. For example, with outside research, I may have found vehicles of a similar make and model being sold for a higher price in my area.

If I could show documentation of these examples, I may have gotten the insurer to offer me more money by showing that my vehicle had a higher estimated value. That could have given me more money to work with when shopping around for a replacement vehicle.

Reviewing the settlement offer carefully and negotiating for a better offer is worthwhile. The insurer benefits by paying you as little as possible, so ensure you're paid fairly for the loss of your car. Taking extra time to do thorough research could benefit your personal finances.