How do I handle insurance company undervaluing car? I want to avoid total loss classification.
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How do I handle insurance company undervaluing car? I want to avoid total loss classification.
The at-fault driver’s insurance came back with a valuation that triggers automatic total loss and is offering a payout that is lower than what I think is appropriate. If a higher valuation was used, car would not be declared total loss and could be repaired. Small Claims limit in my area is 7,500. By accepting the final offer payout, do I forfeit the chance to go to Small Claims for the difference? Are my options either to accept the payout and move on or reject the offer and have to go to ‘real’ court to sue for the whole amount b/c it would be over 7,500?
Asked on September 12, 2016 under Accident Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Unfortunately, you have adequately summarized your options: you can accept their offer, but if you do, it is final: you cannot thereafter sue to get more money. Or you can reject the offer and sue the insurer in "real" court based on breach of contract--for not properly honoring their obligations under the policy. To prevail, you'd have to prove by a preponderance of the evidence that their valuation is too low. As a practical matter, to do that, you'd have to have an expert witness--a car appraiser; an insurance adjuster; possibly a very experienced salesman for this type of car--testify as to the value; a court will not accept your layperson testimony as to value. Since you'd presumably have to pay the expert for his/her time, which can easily by hundreds, possibly thousands, of dollars, it may not be worth doing this.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.