There are many cases where a collision occurs and the insurer for the other vehicle tells you that the cost of repairing your vehicle is more expensive than the value of your vehicle so they are going to ‘write it off’. They’ll propose paying you some minimal amount for your car.

Think about why the insurer may want to write your care off.

When we consider insurer’s offer in context, they want to pay you the minimum amount they think they can get away with. They are in business to maximize profits and paying you the minimum amount they can simply increases profits.

The best way to deal with this situation is to go online and find as many comparable vehicles as you can and print out the results. Also, visit car dealerships and obtain written quotes for the purchase of a similar vehicle as yours. If you recently bought new tires or had upgrades done to the vehicle, make a copy of the receipts. When the insurer presents you with their ‘low ball’ offer hit back with the actual value of similar vehicles in the marketplace and ask for a premium based on the additional money that you recently put into the vehicle. They will be forced to pay you a reasonable amount for the vehicle if you go into the negotiations well-prepared.

If they won’t negotiate in good faith, there are provisions in the Insurance Act that require an independent party to settle the issue. It is unlikely that the insurer will want to spend the time and expense dealing with the vehicle damage claim in that manner.

Photo courtesy of Flickr and reflexer.