One of the most stressful situations people encounter with auto claims is determining the value of the vehicle or the extent of the damage.

The Process

When you file your claim, it will be referred to a claims adjuster who will verify the loss and determine the costs to make the necessary repairs.  The estimate provided by the adjuster can then serve as a benchmark to do your own comparisons.

Insurance companies will not require you to sign an agreement accepting their estimate as total claim payment until you feel comfortable with the offer. If you are not satisfied with the provided estimate, then it is highly recommended that you get at least one estimate from a trusted mechanic.

While your insurance company cannot require you to have repairs done at a particular shop, they can require you to obtain more than one estimate for the damage.  The insurance company will want to verify that they are not overpaying for the damages.

Don’t be surprised when your insurance company chooses to pay for the lowest. Remember, you don’t have to accept the lowest bid, but you will need to ensure that the bid adequately provides the necessary repairs.

Additionally, one reason your bid may be lower than anticipated is due to betterment.  Betterment is when repairs performed actually increase the value of your vehicle, leaving you in a better position than before your claim.

It is up to your insurer to decide whether to pay for repairing your car or to declare it a total loss and pay y u its book value. Most standard auto policies do not cover repairs that exceed the car’s cash value.

There won’t be any dispute about whether to repair the car if it were completely totaled. However, you may argue about what the individual pieces of the car were worth when they were assembled into a car.  Several standard guidelines are used to determine the value of a vehicle.  Guides published by the National Automobile Dealers Association and Kelly Blue Book are good places to start.