Reader’s Question:

Based on the auto insurance estimate, my car was declared totaled here in Michigan. Will I be able to haggle for the price?

Jared

Detroit, MI

Auto insurers employ the services of an adjuster to determine the car’s price. This adjuster will be basing his or her approximation from different sources like the websites that offer car prices, a private party car seller or the Kelly Blue book. More often than not, the adjuster’s quoted cash value of the car may not match these entities’ assessment. This means you’ll get a low auto insurance estimate of the car’s actual cash value. If you have done your own research and checked out car pricing websites as well, yours may prove to be way higher than your insurer’s computation. If your car is declared a total loss following a terrible traffic accident in the State of Michigan, you have all the right to haggle for the car’s actual cash value (ACV) if you feel that the price your insurer gave you is not fair. It is very important then to be involved in the pricing process. Most auto insurance companies will consider your concern if you handle the negotiation properly. Another option is to involve a third party appraiser to act as a mediator in bargaining for the car’s value. However, the professional fees of this independent appraiser will be coming out of your own pocket. But in the end, the independent appraiser’s fees could turn out to be an insignificant expense if you get your target price.

Tags: auto insurance, car insurance, Car Insurance Company