Long story short, number one son hydroplaned his car into a concrete highway divider in South Carolina this past weekend effectively totaling it. Thank god he came away unscathed, but he did a number on the car. I'm trying to guide him through dealing with his insurance company (State Farm), and I've run into an issue new to me. I've dealt with insurance companies regarding accidents several times in the past, but have never had to deal with a totaled vehicle settlement.

So here's my questions.

• Assuming his car is valued at $7k, does he get a check for $7k, or does he get a check for $7k less his $500 collision deductible? Not sure if collision deductible comes into play on a totaled car payout given there will be no repair.
• The value range for his car on KBB.com is ~$5k-$8k. Obviously the insurance company will want to pay out as little as possible, but given his car was in really good condition prior to this accident and low mileage for its age, what sort of leeway do we have in trying to push the insurance company for a higher value? Is there a recommended way to go about it?

Any help any of you can provide would be greatly appreciated.

I would venture any payout will be reduced by the deductible, that should be covered by the collision portion of his insurance.

Question 1: If you settle for the value of $7k, he would get $7000 - $500 = $6500

Question 2: Get as many values as you can from sources like KBB, Edmunds, and if you usually use a car dealer, ask them to give you a value as well. These sites take into account mileage, condition, etc.

Odds are, State Farm may try to settle for the auction value of your car, probably without any adjustment for low mileage and great condition cars, and you can use the sources you obtained to get a higher payout.

$6500 after the deductible.
Get ready for the negotiation part. As others mentioned, they will low ball him, then it's his job to gather the information to justify the higher value.

State farm was fair to me when I totaled a car in 2005. It depends on the adjuster and your previous relationship with State Farm. Your agent can help in this regard. You will basically receive the blue book value of the car. I had low mileage on the vehicle and they credited me with that. I see no need to get estimates other than to look at the blue book value. These sorts of things do not need to be adverserial in nature.

quote:

Originally posted by ZSMICHAEL:
State farm was fair to me when I totaled a car in 2005. It depends on the adjuster and your previous relationship with State Farm. Your agent can help in this regard. You will basically receive the blue book value of the car. I had low mileage on the vehicle and they credited me with that. I see no need to get estimates other than to look at the blue book value. These sorts of things do not need to be adverserial in nature.

But that's just it, there is no one value for his car but rather, a range it will fall into. I want the top of that range, while I'm sure State Farm will be shooting for more of the bottom of the range (which is understandable given their business model).

I already pulled KBB.com, Edmunds, and 6 listings for similar cars from AutoTrader.com to help substantiate the value of his car. Interestingly, same year cars with well over 100k miles (his car had 80k) were listed for ~$8k, which was above the top of the KBB Private Party sale range for his car. I do not think $7k would be an unreasonable valuation for his car. Had he not wrecked it but opted to sell it instead, I feel quite confident it would have brought ~$7,500+.

I've gotta admit, on the only total I've ever had (stoopid kids) State Farm paid me more than what I thought was reasonable value for my '03 Infiniti G35.

I wouldn't get too worked up until you see what you're paid.

quote:

But that's just it, there is no one value for his car but rather, a range it will fall into. I want the top of that range, while I'm sure State Farm will be shooting for more of the bottom of the range (which is understandable given their business model)

^^^^^^^^^^^
Believe me they will look at other factors as well. For example, how many previous claims, your longevity with the company etc. They can always adjust your rates in the future. Let us know how it turns out. Let them make an offer first and see what happens.

Best thing to do is compare KBB against what fair market value is in your area. When one of my Honda’s was totaled by a negligent teenager, State Farm paid me almost 2k more than what was listed in KBB based on what like models were selling for in my area.

Didn’t even need to haggle, at all.

My F250 was totaled in 2017 when I loaned it to a friend. State Farm used some magical formula based on age, mileage and options installed to come up with a value, which was honestly higher than I would have guessed as the truck needed to have some not-cheap work done on it. Their value figure was reduced by the amount of my collision deductible.

You need to find data on actual sales of vehicles as similar to his as possible - model, milage, condition, etc. That is what will convince them to pay you more than average. The various "Blue Books" are no more than rough guides. Don't rely on them.

The deductible will apply.

I've had two claims with State Farm, and they were generous both times. The first time, as soon as the adjuster said "totaled" I was posturing for a fight, then they gave me a number that I thought was quite generous.

The second time, my old Tahoe was stolen, and recovered a few weeks later with some body and transmission damage. They totaled it, and let me buy it back for $500. Bottom line I kept the Tahoe and got a check for $4500.

Let them give you a number first, and possibly ask about buying it back. If you or your son have a place to put it, it would be a decent part time job to part it out. Tires, wheels, battery, headlights, radio, dash pieces, seats, interior trim-all good money.

When my 17 year old stepson totalled his car a few years back State Farm offered me about 2-3k more than I thought it was worth, and I know cars. It was also 2k more than we paid for it a year earlier. Thereby confirming that I got a deal on it when we bought it.

quote:

Originally posted by jhe888:
You need to find data on actual sales of vehicles as similar to his as possible - model, milage, condition, etc.

The various "Blue Books" are no more than rough guides. Don't rely on them.

The two quotes above are the most important.

It doesn't matter what folks are asking for cars similar to his, the important part is what they are actually selling for...in your area. The on-line data/sources are just guides...and only regional ones at best.

The last time I had a car totaled, by CSAA, they offered me more than I thought I could get for it if I were to sell it privately. I asked how they came to that figure and was told that it was based on what cars in my area...within 100 miles (might have been less)... had sold for in the last 90 days. They did take into consideration low mileage and recent (6months) repairs, but paint/condition wasn't a major factor unless you had recent (30days) pictures (usually from a recent refinish/refresh)

Do not use the KBB private party price, use the "retail" price.

quote:

Had he not wrecked it but opted to sell it instead, I feel quite confident it would have brought ~$7,500+.

$7,500 - 500 = $7,000 target.
You should be able to get that.
As jhe888 said: Document sales:
You need to find data on actual sales of vehicles as similar to his as possible

quote:

Originally posted by c1steve:
Do not use the KBB private party price, use the "retail" price.

This

State Farm tried to ream my elderly FIL when a kid ran a red light and t-boned his older low miles, excellent condition 4WD Suburban. I got on line and checked Auto Trader and Edmunds for a similar condition, mileage, and year model Suburban and couldn’t find one for sale anywhere in the country that was close to as cheap as the price they offered him. Even with twice the miles and 2WD.

They ended up raising the payoff by a couple grand.

You just never know what an insurance company will try on you.

I was involved in a collision last month. I have State Farm, and the car was totaled.

Like others have said, I was pleasantly surprised at the value given for my vehicle. It was an '06 Hyundai, and I got over $1000 above private party sale price found at Edmunds and KBB. It too was in good shape and low mileage for it's age.

They did deduct the $500 deductible from the payout.

and this discussion is why I buy (and you probably can too) agreed value insurance.