Auto Insurance Forum

My car was totaled in a car accident and my insurance company is offering me $12,000 for my car even though the Kelly Blue Book price on my car is between $13,000 and $17,000. What can I do to get the insurance company to make me whole?

Sherry, Tennessee

Dear Sherry,

Insurance companies do not use the Kelley Blue Book as the sole source to determine the market value for your vehicle. There are many variables that determine the value of your car, such as miles driven, pre-accident condition, special equipment installed into car, and your local market conditions for that vehicle.

If you disagree with the insurance company's assessment of your vehicle, you can hire an independent appraiser at your own expense to perform an inspection of your vehicle (contact a local body shop or garage to find one). Be sure to get a detailed inspection put in writing, then present that information to your insurance company.

If the insurance company refuses to give you more money, you have two options: arbitration and litigation. Arbitration is a process in which you and the insurance company present your facts to a third-party arbiter. Arbitration can be binding (which means the arbiter's decision is final) or non-binding (meaning you can still take the insurer to court if you are unsatisfied).

But before you decide to hire an independent appraiser, or even pursue the matter in court, you have to weigh whether the fight to get more money for your vehicle is worth the expense.

For more information, read Total warfare: What to do when your auto insurer totals your car.

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Disclaimer: We are journalists, not financial planners or insurance brokers. Nothing we say should be interpreted as a recommendation to buy or sell any insurance product, or to provide other financial or legal advice.