Totaled Vehicles & Your Rights

My insurance company declared my vehicle a total loss. I cannot agree on the car’s value with my insurer. What are my rights in this situation?

Answer

The best place to find a list of your rights as a policyholder is the website for your state’s government. From there, search for the department of insurance and then look for more information on the fair settlement of car insurance claims. All states regulate auto insurance companies to an extent in order to protect consumers from getting cheated when they file a claim. Once you know your rights, check for an appraisal provision in your policy. This provision allows you to get an independent appraisal of the damage to your vehicle. The independent appraisal and that of your insurance company are then evaluated by an “umpire” jointly selected by your appraiser and your insurer’s. If your insurer and your appraiser still cannot agree on the value of the vehicle, the umpire will step in to decide. You will have to pay for the independent appraisal and for part of the umpire’s fees, but it may be worth it if you feel you are really being shortchanged by your insurance company.