What if the insurance company won't give you what it takes to fix the car?

Answer 1

You can sue them for the balance between what has been offered and the reasonable cost of repair. In that sort of a lawsuit, it is necessary that you retain an "expert" witness, such as an experienced auto body repair person to prepare an estimate of the cost of repair. Unless the case is settled before trial, that person would have to brought to court to testify within the scope of his/her expertise. It is then the judge's job to determine whether your expert or the insurance company's (usually an adjuster) is more reasonable/correct in their assessment of damages. When a matter goes to trial, however, it is often useful to get a lawyer to assist, as there are rules of evidence that a layperson may not be familiar with. In turn, this may become complicated and costly than the amount in controversy justifies.

All of that said, most states require that an insurer declare a vehicle to be a "total loss" when the cost of repair exceeds a stated percentage of its "actual cash value" (ACV). The ACV is roughly equivalent to the market value of a vehicle of like kind and quality, similar mileage, equipment, and other characteristics. If the vehicle is required to be totaled, the insurer will pay the ACV to the insured; if there is outstanding financing on the vehicle, it will pay the lienholder's interest, with the balance going to the insured. The insurer will apply the policy collision deductible to whatever is paid.

In return for the payment of the ACV, the insurer generally gets to keep the remnants of the vehicle (salvage). It then sells the salvage for what it can get as a means of recouping part of its payment. The insured may have the option of keeping the salvage; in that event, its value reduces the payment made by the insurer to the insured.