If you’ve been in an accident and an insurance company declares your car a total loss, we recommend making sure their valuation and settlement offer are accurate and fair.

Earlier this year a District Attorney in Northern California sued two major insurers and two software companies for systematically undervaluing total vehicle losses.

We recommend you:

• Check the comps your insurer used to make sure those cars really are similar to your car’s pre-loss condition, repair, accident, and ownership history. Get details on the cars they used for comparison to calculate your car’s actual cash value. They may have based their valuation on a software program instead of actual comparable vehicles.
• Do your own research on the pre-crash value of your car. Find vehicles that really are comparable to yours due to their similar condition, options, repair, accident and ownership history.
• Give your insurer your own documentation and comps and request an adjusted offer, (in writing, so there’s a record).
• If your insurer stands firm on their lowball valuation, file a complaint and seek help from your state insurance oversight office and if there’s a significant financial gap between their offer and the true value of your totalled car, consider hiring an experienced attorney on a contingency fee basis to help you get a fair settlement.

For more info, visit the Auto Insurance Section of our Claim Guidance Library.