The insurance company will make you an initial offer. Ask to see the report showing the value of your vehicle. The report should have some online valuation, with 2 or three comparable vehicles for sale in you market. In order to counter this report, you need to find your own online values, and comparable vehicles.
Start by searching online vehicle valuation websites like kbb.com (Kelley Blue Book), nada.com, truecar.com, autotrader.com, edmunds.com, carfax.com. Choose the retail or private party value. Don’t choose the trade-in value, because you’re not trading the car into a dealership. Remember, you’re selling your car to the insurance company, which is a private party sell.
If you’ve been in a car accident and your vehicle has been declared a total loss, dealing with the insurance company can be a daunting task. Often, the insurance company will offer you a payout for your totaled car that feels significantly lower than what you think it’s worth. In Anchorage, AK, this scenario is unfortunately common, and many drivers feel frustrated and shortchanged by the insurance settlement process.
Insurance companies are in the business of minimizing their costs, which means they’ll frequently use the lowest possible valuations when offering compensation for your vehicle. However, there are steps you can take to increase your payout and ensure that you’re getting a fair deal. In this guide, we’ll break down the steps you should take when negotiating with your insurance company and strategies you can use to potentially increase the amount of money they’re willing to pay you for your totaled vehicle.
How Insurance Companies Value a Totaled Vehicle in Anchorage, AK
When your car is totaled, the insurance company is essentially purchasing it from you for its pre-accident value. This value is determined based on several factors, and understanding these factors is crucial for negotiating a better payout.
Market Value
Insurance companies often rely on tools like the Kelley Blue Book (KBB), NADA Guides, and other online resources to estimate the market value of your car in Anchorage, AK. However, the values they pull from these resources can vary significantly depending on the condition, mileage, and availability of similar vehicles in the area. Keep in mind that vehicles in Anchorage might have different wear and tear due to unique weather conditions, so local data can affect your car’s valuation.
Comparable Vehicles
The insurance adjuster will typically reference comparable vehicles available in your area to determine the value of your car. These are cars that are similar in make, model, mileage, and condition to yours before the accident. However, these comparisons can sometimes be misleading if the insurance company selects vehicles that are older, in worse condition, or no longer available.
Condition of the Car
While market value plays a significant role, the specific condition of your car before the accident will also affect the insurance company’s valuation. The adjuster will consider factors such as:
- Pre-existing damage
- Mileage at the time of the accident
- The car’s overall maintenance and history
Vehicles that are well-maintained or have unique features can be worth more, but these aspects are often overlooked or undervalued by insurance companies. This is where you can intervene and correct any undervaluations in your favor.
Step 1: Get the Insurance Company’s Valuation Report
Once the insurance company determines that your car is a total loss, they’ll make an offer based on the valuation report. The first step in negotiating for a higher payout is to request this report. The report should include:
- The market value of your vehicle
- The comparable vehicles used in the valuation
- Any deductions made based on the condition of your vehicle
In Anchorage, AK, insurance companies are required by law to be transparent about how they arrived at their valuation. If they hesitate to provide you with the report, insist on it, as this is your right as the policyholder.
Step 2: Do Your Own Research
The next step is to conduct your own research and challenge the insurance company’s valuation. This involves using the same tools they use but ensuring that you are looking for the highest possible values for your vehicle.
Key Online Resources for Vehicle Valuation
- There are several websites you can use to determine your car’s value:
- Kelley Blue Book (KBB.com): Provides retail and private party values.
- NADA Guides (nada.com): Offers a range of car valuation options.
- TrueCar.com: Focuses on providing true market values based on local pricing.
- Edmunds.com: A trusted source for vehicle valuations.
- AutoTrader.com: Lists cars for sale and their asking prices.
- Carfax.com: Provides vehicle history reports and values.
When using these websites, always select the retail or private party values rather than the trade-in value. Remember, you’re not trading in your car—you’re selling it to the insurance company, which is a private sale.
After gathering values from these websites, take the top three highest valuations. This will give you a strong basis to challenge the insurance company’s offer.
Step 3: Find Comparable Vehicles in Anchorage, AK
Once you have established the top three values for your vehicle, the next step is to find comparable cars that are currently for sale in Anchorage or surrounding areas. This step is crucial because local market conditions can significantly influence a vehicle’s value.
Anchorage has a unique car market. Due to the harsh weather conditions and increased demand for vehicles with all-wheel drive or higher ground clearance, certain types of cars may hold more value than in other regions. When looking for comparable vehicles, focus on local listings that reflect the market dynamics of Anchorage.
Look for vehicles on popular websites like:
- Craigslist Anchorage
- Facebook Marketplace
- AutoTrader
- Dealership websites in the Anchorage area
Make sure the vehicles you find are as close as possible to your car in terms of make, model, year, mileage, and condition. Having solid comparable listings from your local area can greatly strengthen your case.
Step 4: Verify the Insurance Company’s Comparable Vehicles
The insurance company’s report will include comparable vehicles that they claim justify their valuation. It’s essential to verify the information they provide. Often, insurance companies will use outdated or inaccurate listings. For example, they might list a vehicle that has already been sold or one that is in significantly worse condition than your car.
How to Verify the Information:
- Contact Dealerships Directly: If the insurance company lists vehicles from dealerships, call those dealerships and confirm that the vehicle is still available. If the vehicle has been sold or was misrepresented in the report, note this and bring it up with the adjuster.
- Check Online Listings: Verify the listings of the vehicles used in the insurance report by checking online. If the vehicle is no longer for sale, you can argue that it’s not a valid comparison.
- Compare Condition and Features: Make sure the condition of the comparable vehicles matches your car. For instance, if your car had upgrades or special features that the comparables lack, you should highlight these differences to the adjuster.
Step 5: Present Your Research and Negotiate for a Higher Payout
Now that you’ve done your research and verified the information, it’s time to negotiate with the insurance company. Follow these steps to present a strong case for a higher payout:
Show Your Top Three Valuations
Present the three highest vehicle values you’ve found from reputable sources like KBB, NADA, or Edmunds. Explain that these numbers more accurately reflect the true market value of your vehicle, especially in Anchorage, AK.
- Dispute the Insurance Company’s Comparables
If you’ve found discrepancies in the insurance company’s report—such as vehicles that are no longer available, in worse condition, or from different regions—highlight these points to the adjuster. Explain why the insurance company’s valuation is too low and why your comparables are more accurate.
- Include Additional Costs
Don’t forget to include additional costs, such as sales tax, registration fees, and title transfer fees, in your counter-offer. When you replace your totaled vehicle, you’ll have to pay these costs, and the insurance company should account for them in their payout.
- Be Polite but Firm
When negotiating, maintain a professional tone, but be firm in your demands. Insurance adjusters are trained negotiators, and they may try to push back or downplay your research. However, by presenting your findings clearly and confidently, you increase the likelihood of securing a higher offer.
Step 6: Be Persistent and Follow Up Regularly
- Negotiating with an insurance company can be a lengthy process. The key to success is persistence. In many cases, adjusters will try to delay or offer lowball settlements in the hopes that you will accept out of frustration or impatience. However, if you remain persistent, your chances of securing a higher payout increase significantly.
- Call the Adjuster Regularly: Keep in frequent contact with the adjuster. Let them know that you are serious about negotiating a fair settlement. By keeping the pressure on, you show the insurance company that you won’t back down.
- Ask for a Supervisor: If the adjuster continues to offer low amounts, ask to speak to a supervisor. Supervisors often have more authority and can approve higher payouts.
- Document Everything: Keep a detailed record of all communications with the insurance company, including phone calls, emails, and letters. This documentation can be invaluable if the negotiation drags on or if you need to take further action.
Step 7: Consider Legal Assistance
If you’ve done everything right and the insurance company is still refusing to offer a fair payout, it may be time to seek legal assistance. In Anchorage, AK, there are attorneys who specialize in insurance disputes and can help you get the compensation you deserve.
Hiring an attorney may seem like an expensive option, but in many cases, the increased payout can more than cover the cost of legal fees. Plus, the presence of a lawyer may prompt the insurance company to settle more quickly and fairly.
Conclusion: How to Get the Insurance Company to Pay More for Your Totaled Car in Anchorage, AK
Dealing with a totaled car is a stressful process, and insurance companies often make it more difficult by offering lowball settlements. However, with thorough research, persistence, and the right strategies, you can negotiate a higher payout and ensure you’re being compensated fairly.
The key steps include:
- Request the insurance company’s valuation report.
- Conduct your own research using reliable online tools.
- Find comparable vehicles for sale in Anchorage, AK, to support your case.
- Verify the insurance company’s comparables and refute any inaccuracies.
- Present your findings to the adjuster and negotiate persistently.
- Consider legal assistance if necessary.
By following these steps, you’ll increase your chances of securing a higher payout for your totaled vehicle, allowing you to move forward without being financially shortchanged. Good luck!