Approximately three years ago I purchased a new car with the intent of driving it until the wheels fall off. It was in an accident and I have zero experience dealing with auto insurance companies. I am still waiting on a final verdict of whether it is totaled, but do want to be prepared to make a quick decision. I have a few questions if anybody has experience:
-Purchased the car three years ago for approximately 16k pre tax. Chose it because it cost about the same as other brands but seems to hold its value
-I looked at similar used cars, Kelley Blue Book, NADA, Most put it between 13k (private party sale) and 14k (price at a dealer), 15k (what the dealers list it for before you haggle), or 11k (trade in at dealer). Are these the best tools I have available as a consumer? Which number should I use to put a fair offer out?
-I heard insurance companies low ball when they make an offer (this is my main concern), I have the cash to buy a replacement outright. I feel the insurance company is used to taking advantage of people stuck with car payments/in a rush. Can I use this to my advantage?
-Do insurers include sales tax in their values? This adds almost 1k to the price of the replacement plus adds 1k to the loss of the totaled car.
-Once I know they will pay out, but not how much (if I want to counter their number), am I safe to go buy a replacement with my own cash? Or, is there risk they could come back significantly lower or un-total the car?
-I was very satisfied with my car, but would you recommend I buy the same exact car - or move to something like a domestic brand that consumer reports has rated well in reliability but has tanked in residual value?
My ultimate goal is just to be back on the road as I was before, not to make a profit
Thank you, any/all advice is appreciated as I am in uncharted territory. It has been difficult to find unbiased advice online (it is all outdated, from lawyer ambulance chasers, or insurers themselves)
November 18, 2017 at 09:33AM
