The insurance company decided to total my car, and we can't agree on a settlement amount. What are my options?

Insurance companies declare a vehicle a "total loss" if the cost to repair it exceeds a certain percentage of the car's value before the accident. State insurance departments often set guidelines for the percentage at which cars can be totaled.

Once the insurance company totals a car, it must pay the owner the actual value of the vehicle minus the deductible. The insurer bases its estimate of a car's value on a variety of factors, including the value of the vehicle before the accident, mileage, special equipment and features, and local market prices for the car's make and model.

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If you disagree with the estimate, you can hire an independent appraiser, but you'll have to pay for the service out of your own pocket. Call a body shop or garage to find an appraiser, and then present the professional's detailed, written report to the insurance company.

If the insurer won't budge from its original estimate, ask a consumer representative at your state's insurance department to investigate the case and help you and the company resolve the matter.

If you still are unsatisfied, consider arbitration, in which you and the insurer present your sides to a third-party arbiter. This option is less expensive than filing a lawsuit, but it's still a good idea to hire a lawyer to guide you through the process.

Failing that, you can sue the insurance company.

Before you decide on a course of action, consider whether fighting the insurance company will be worth the cost of hiring professionals to represent your side.

For more, see total warfare: what to do when your auto insurer totals your car.