Insurance Totaled My Car, But the Offer Is Too Low — What Can I Do?

If your insurance company declares your vehicle a total loss after an accident, they will make a settlement offer based on what they believe is the car’s actual cash value (ACV). Sometimes, this offer may seem too low compared to what you paid for the car or what it’s worth to you. Fortunately, there are steps you can take to challenge the insurance company and get a fair payout.

1. Understand How the Insurance Company Calculates ACV

Insurance companies typically consider:

• The age, make, and model of your car

• Mileage and condition before the accident

• Local market values for similar vehicles

They may subtract depreciation, prior damage, or missing features, which is why the offer can feel low.

2. Gather Evidence of Your Car’s Value

• Recent sales listings: Show what similar cars are selling for in your area.

• Receipts for upgrades or maintenance: Evidence of recent repairs or added features can increase value.

• Independent appraisals: Hire a certified appraiser to document your car’s worth.

3. Negotiate With Your Insurance Company

• Provide documentation: Submit all evidence showing your car’s higher market value.

• Request a re-evaluation: Ask the insurance adjuster to reconsider based on your data.

• Consider mediation or appraisal clauses: Many policies allow an independent appraisal if you and the insurer cannot agree.

4. Legal Options

If negotiations fail, an experienced personal injury or property damage attorney can:

• Review your insurance policy and settlement calculations

• Communicate directly with the insurance company to maximize your payout

• Represent you in mediation or litigation if necessary

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