How to Get the Most Money From Insurance for a Totaled Car (Step-by-Step Guide)

Ask your adjuster for the full valuation report, not just the one-page settlement letter that shows only the final dollar amount. The valuation report shows every comparable vehicle used, the dollar adjustments applied to each comparable, and the condition rating (a score like "good," "fair" or "poor") assigned to your car. Ask for the report in writing so you have a record of the request.  

In the valuation report, check your trim package (the specific features your car came with, like leather seats or a sunroof), your condition rating, the mileage adjustments applied to the comparable vehicles listed, and a line item called "typical negotiation." The “typical negotiation” is a dollar deduction CCC ONE or Mitchell applies on the assumption that buyers haggle listed prices down at dealerships. You're not buying a car, you're settling a total loss claim. Ask your adjuster to remove the "typical negotiation" deduction or explain in writing why the deduction applies to your specific vehicle.

Search Autotrader, CarGurus and Craigslist for vehicles matching your car's year, make, model and trim level, with similar mileage and condition. Limit your search results to vehicles listed within 50 to 100 miles of your location. Screenshot every listing with the listed price, listing date and source website visible before the listing is removed. You need at least three local listings whose average listed price exceeds your insurer's settlement offer.

The condition rating CCC ONE or Mitchell assigns your vehicle directly affects your total loss settlement payout. If your adjuster assigned your car a "fair" condition rating when your car was actually in "good" condition before the accident, you have written grounds to request a higher settlement offer. Pre-accident photos and vehicle service records are your strongest supporting evidence; receipts for recent repairs add to that supporting evidence. Any upgrade or repair your adjuster cannot independently verify won't change the valuation.

Write a letter or email to your adjuster presenting your counter-offer. For each comparable vehicle you found, list the source website, the listing date and the listed price. Ask your adjuster to explain in writing any difference between the insurer's valuation and the comparable vehicles you submitted. Most insurance companies will issue a revised settlement offer when a policyholder submits documented comparable vehicle listings.

• Difference under $1,000: A written counter-offer with three or more documented comparable vehicle listings is usually enough to prompt a revised settlement offer. Your adjuster has authority to revise a settlement offer by an amount under $1,000 without supervisor approval.
• Difference over $1,000: Check your insurance policy's declarations page for an appraisal clause. If your policy includes an appraisal clause, you have the contractual right to bring in an independent vehicle appraiser to set your car's actual cash value, and your insurer is contractually required to participate in the appraisal process. When you invoke the appraisal clause, your adjuster is removed from the valuation process. You hire an independent vehicle appraiser at a cost of roughly $300 to $500, and your insurance company hires its own independent vehicle appraiser. If the two independent appraisers disagree on your car's actual cash value, a neutral third-party umpire makes the final valuation decision.
• Public adjuster: A public adjuster is a licensed claims professional who negotiates your total loss settlement with your insurance company on your behalf, paid 5% to 15% of your final settlement amount. Hire a public adjuster only when the public adjuster's fee is less than the dollar difference between your insurer's settlement offer and your documented comparable value.
• State insurance commissioner: You can file a formal complaint with your state's insurance regulatory agency if you believe your insurer's valuation is unfair. Your state's insurance regulatory agency cannot set your settlement amount, but a filed complaint can prompt a formal review of your insurer's valuation methodology. This escalation path is a last step, not a first one.

You can surrender the vehicle to your insurer for the full settlement payout, or keep the vehicle and accept a reduced payout. If you keep the vehicle, your state's DMV assigns the car an official salvage title, showing the vehicle was declared a total loss by an insurance company. If you have an outstanding auto loan, contact your lender before making this decision. Your insurance company pays your lender directly from the total loss settlement, and your lender must agree before you can retain a salvage-titled vehicle with an open loan balance.

If you own the car outright, check two factors before deciding to keep the salvage-titled vehicle. First, most major auto insurers won't sell collision or comprehensive coverage on a salvage-titled vehicle, so you may only qualify for liability-only coverage. Call your insurer to confirm your coverage options before accepting the reduced settlement payout. Second, a salvage title reduces your vehicle's resale value by 20% to 40% below the clean-title market value for the same make, model and year, according to Kelley Blue Book. On a vehicle with a $15,000 clean-title market value, that resale reduction equals a permanent loss of $3,000 to $6,000. Severe or flood damage can push the salvage title resale discount to 60% below clean-title market value, according to RideSafely.