How to Get the Most Money from Your Car Insurance Claim

If your car was involved in an accident and declared totaled, you may face an uphill battle. When it comes to small repairs, it’s easier to pay for them yourself if the insurance doesn’t cover them. This is not the case for a totaled vehicle.

When an insurance company says their car is totaled, the owner hopes to get the most money from their settlement so they can buy a new car. Unfortunately, the insurance company might table a low offer based on the prevailing market price.

The normal thing for an insurance company to do is offer a settlement amount that keeps their interests and profits safe. To get the money you need to buy a new car, you can try to negotiate for a higher price, but this might be hard to do.

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Making a car insurance claim can be stressful, especially if your vehicle is totaled. You want to make sure you get the most money possible to replace your car. Here are some tips on how to maximize your car insurance claim payout.

Do Your Research on Your Car’s Value

The first step is to thoroughly research the pre-accident value of your car. This will give you evidence to negotiate if the insurance company lowballs you on their initial offer.

There are several places online to look up used car values

Kelley Blue Book – The classic car valuation source Enter your car’s specifics like year, make, model, mileage, condition, etc Print the page with the value range.
NADA Guides – Another reputable place to find car values Make sure to choose the retail value, not the trade-in value
Local dealer websites – See what similar cars are selling for at dealers near you. This gives you real examples of local market value.
Classifieds sites – Check AutoTrader, Craigslist, Facebook Marketplace for private sales of comparable vehicles.

Save your research and have the URLs ready to send the insurance adjuster. Real market data gives you power when negotiating your claim.

Provide Documentation on Your Car’s Condition

In addition to retail value, the insurance company will factor in your car’s condition. It’s important to prove your car was in excellent shape before the accident.

Provide any documentation you have:

Recent maintenance and repair invoices – Show evidence of tire replacements, major mechanical work, etc.
Custom add-ons – If you made upgrades like a new stereo system, keep those receipts.
Regular car washes/detailing – Dated receipts prove you maintained your car well.
Mileage records – The lower the mileage, the higher the car value.
Photos or video – If you have images of your car before the accident, provide them.

Giving the adjuster proof of condition forces them to rate your car at the top of the value range.

Negotiate a Total Loss Settlement

If the insurance company declares your car a total loss, that means it’s damaged beyond repair. Now it’s time to get the full dollar amount owed to you. Here are tips for negotiating a total loss settlement:

Review the valuation report – Many insurers use auto valuation tools that generate this report. Make sure all your car’s features are listed properly.
Challenge the comparables – The report lists similar “comp” cars for sale in your area. Check that the mileages, conditions, and options match yours.
Dispute condition adjustments – If the insurer knocked value off the comps for “poor condition”, argue this if your car was well-maintained.
Find your own comps – Search classifieds sites for 3-5 better comps the insurer missed. Send these to the adjuster.
Provide a counteroffer – Use your research to make a counteroffer higher than their initial offer. Provide documentation supporting your number.
Consider an appraiser – For expensive/rare cars, an independent auto appraiser can estimate value. This holds weight for insurers.
Negotiate politely – Remember car value is objective. Don’t threaten or accuse. Just stick to the facts.

With persistence and good documentation, you can get several hundred to several thousand more dollars for your total loss claim.

Things That May Reduce Your Payout

While you want top dollar for your car, there are some things that might negatively affect your claim settlement:

High mileage – Cars over 100k miles or nearing the end of their useful life get less money. Maintenance records help offset this.
Prior damage – Existing dents, scratches, etc. will be accounted for when assessing car value.
Modifications – Custom upgrades don’t always add value in the insurer’s eyes. Keep receipts as proof.
Unavailable options list – Not having a vehicle options list can make it harder to prove all the features your car had.
Aftermarket parts – Insurers reimburse for OEM parts. If you have non-OEM parts, keep invoices.
Poor maintenance – Evidence of neglected maintenance, major repairs needed, and wear & tear will reduce value.

While you can’t change some factors like mileage, having documentation of proper maintenance and repairs shows you took good care of your car. This helps maximize your claim payout.

Tips to Expedite Your Claim Settlement

Getting the most money for your total loss claim also means expediting the process so you can get your payment faster. Here are some tips:

Report your claim immediately – The sooner the insurance company can assess the damage, the quicker the process moves.
Provide requested documents ASAP – Have your insurance information, police report, photos etc. ready to send. The more responsive you are, the faster insurers can work.
Stay in communication – Answer calls and emails from your claims adjuster promptly. Being available speeds your settlement.
Remove personal items – Take any possessions out of your car so the insurer can tow it faster.
Cooperate fully – Agree to inspections, provide statements, sign necessary forms. Don’t be difficult or delay the process.

Settling your total loss claim quickly requires you to be organized and responsive. But it allows you to get your money faster so you can buy a replacement vehicle sooner.

When to Hire a Public Claims Adjuster

In most cases, you can negotiate with your insurance company directly to maximize your claim payout on a total loss. But for complex cases, hiring a public claims adjuster may be beneficial. Here are some examples:

Your car is rare or collector-grade, requiring very specialized valuation.
You suffered injury in addition to vehicle damage that complicates the claim.
The insurance company is accusing you of fraud or deliberately totaling the car.
Your claim was denied and you need to appeal or file suit against the insurer.
Your car is financed so you need help navigating payments to the lienholder.
You attempted DIY negotiation but can’t reach a settlement with the insurer.
Total loss settlement would exceed $100k and you want an expert negotiator.

For a major claim, the fee of around 10% of the settlement could be worth it to have a public adjuster fight for the maximum payout.

Other Factors Affecting Your Total Loss Payout

As you negotiate your total loss claim, keep these other factors in mind that can impact your final settlement:

Your policy deductible will be subtracted from the payment.
State sales tax will be added to the agreed value.
GAP insurance helps cover any remaining loan balance if you owe more than the car’s value.
Insurance premium refunds may be due back to you for canceling a policy mid-term.
Salary reimbursement for time off work due to the accident.
Medical bills related to any injuries suffered may be paid separately.

Getting the best deal on your totaled car is about understanding these variables and crafting an airtight case for maximum value. With good documentation and negotiation skills, you can recover more money from the insurer.

Purchasing a Replacement Vehicle

Once you receive your total loss settlement, you can start shopping for a new car. Having a positive and productive claims experience allows you to use your payout to buy the best possible replacement vehicle.

Here are some tips for selecting your next car after a total loss:

Set a vehicle budget based on your settlement amount and any other funds you plan to put toward a down payment.
Research vehicles within your budget that are comparable to your old car in terms of make, model, features, etc.
Broaden your search to include other vehicles with expected reliability, fuel efficiency, and utility similar to what you had before.
Get pre-approved for financing since you likely won’t have a trade-in vehicle. Many insurers work with lenders to help expedite this.
Consider buying certified pre-owned to get a like-new car for less money compared to new.
If you leased your totaled car, work with the leasing company on your options for a replacement lease.
Weigh the features you really need versus want in your next car to maximize value from your payout.
Comparison shop multiple dealers and get quotes with no obligation before committing to a replacement vehicle.

With some savvy shopping, you can leverage your claim settlement into the perfect car for your needs and budget. Taking the time to negotiate with your insurer results in getting the dollars you deserve.

Final Tips for Maximizing Your Total Loss Claim

To recap, here are the key steps for getting the most money from your car insurance company after a total loss:

Thoroughly research your car’s pre-accident value using valuation sites, classifieds and dealer prices.
Provide documentation proving your car’s excellent condition before the accident.
Negotiate a fair total loss settlement

how to get the most money from car insurance claim

Who Receives Payment for a Totaled Car?

Before making a payment, the insurance company looks at a number of factors, such as whether the car is leased, financed, or owned outright.

Then, the insurer makes the payment as follows:

Pay you directly as the policyholder if you own the car.
Pay the leasing company directly for people who have leased the car.
They can also ask the policyholder to help them figure out who should get paid for a financed car.

Negotiate With the Insurance Company

Talking to an insurance company can be hard and frustrating, but it’s necessary if you want to get the most out of your insurance for a totaled car.

Here are a few tips for effective negotiations:

Know Your Auto Insurance Policy: Carefully read the policy to learn about the limits of coverage, what it doesn’t cover, and any other important information. More importantly, make sure you know how much you can get back if you lose everything.
Print out copies of everything you’ve done with the insurance company. These details include email conversations, letters, and phone call logs. Also, write down everything you talked about and anything the insurance company said they would do.
Remember to be patient and persistent, because negotiations can’t be finished in a day or a week. Therefore, be patient and persistent with your efforts. A deal might need more than one phone call and meeting to be reached.
Stay Calm and Polite: Another good strategy is to stay calm, polite, respectful, and respectful during the negotiation. Don’t lose your cool, because that will slow down the talks and hurt your case.
Be Clear About What You Want: Spelling out the amount of money you want as a settlement helps during the negotiations. However, provide reasoning and evidence to support your position. Bring copies of the most recent valuation report, an independent appraisal report, the policy document, and any receipts for aftermarket parts.
Talk to a Manager: If you’re not getting anywhere with the company’s first rep, ask to talk to the line manager. They often have more authority to make decisions.

If negotiations fail, request an appraisal for a neutral third party on the vehicle’s market value. A third party can figure out the item’s fair market value and show that the insurance company didn’t give it enough of a value.

The insurance company may improve the offer to avoid expenses and added time associated with a neutral appraisal.

Easiest Way to Get Paid Big for Your Car Accident

FAQ

How do insurance adjusters determine the value of a car?

How Do Insurance Companies Determine a Car Valuation? A car insurance company will generally take into account your vehicle’s year, make, model, mileage, condition, accident history and depreciation when determining the value of your vehicle. This is called the actual cash value of your car.

How do I get a car insurance claim payout?

You can only get an insurance claim payout if you carry full coverage on a vehicle. An insurance adjuster will examine your car to determine how much it’s worth. You can negotiate the car’s value with the adjuster or hire an attorney to come to a settlement.

How much does a car accident claim cost?

The Insurance Information Institute reports the average claim for bodily injury after a collision was $20,235 in 2020, while the average property damage claim was $4,711. However, a Martindale-Nolo survey of readers who made car accident claims between 2015 and 2020 reported an average settlement of $23,900. Most received less than $10,000.

How do I make a car accident claim?

You must tie your injuries directly to the car accident for an effective claim. Tell every provider who treats you exactly when and how you were injured. Refusing or delaying medical treatment can sink your injury claim. The insurance adjuster will jump at the chance to deny your claim, arguing that your injuries aren’t related to the car accident.

How do I get more from insurance on a totaled car?

Don’t wait until you have the adjuster’s offer to start your research — it will only delay your total loss settlement negotiation and your ability to get replacement coverage or a payout. Local comps, or “comparables,” are how to get more from insurance on totaled car.