Auto Insurance Forum

My wife was involved in an accident in which our van was totaled. My insurance company's total loss offer is lower than what I think it should be. My van is a 1998 Ford Windstar with a premium stereo. The reason for the lower price is due to the mileage on the van, which is 80,000 miles. However, the van was in incredible shape with a well-documented maintenance history, and 90 percent of the mileage was highway miles. Do I have any grounds for getting a good retail value for my van?

Keith, Kentucky

Dear Keith,

There are many variables that determine the value of your vehicle, such as miles driven, pre-accident condition, special equipment installed into the car, and your local market conditions for that vehicle. The 80,000 miles on your 1998 vehicle is a substantial number for a vehicle that age, even though they are highway miles.

However, you do have a few options. You can hire someone to do an independent appraisal of the vehicle at your expense. You can then use the appraiser's estimate to try to negotiate a better settlement.

If negotiating with the insurance company brings no results, you do have two more options: arbitration and litigation. Arbitration is a process in which you and your insurance company present your case before an independent arbiter. Arbitration can be binding (which means the final decision of the arbiter cannot be contested) or nonbinding (which means you can take the matter to court if you're not satisfied).

The bottom line is this: You have to weigh whether the expenses that you may incur fighting for a better settlement offer is worth the extra money you'll receive from your insurance company.

For more information, read Total warfare: What to do when your auto insurer totals your car and Recouping expenses after your car is totaled.

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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.