Car Totaled Insurance Low-Ball: What You Need to Know

Car Totaled InsuranceSource:

When you get into a car accident, one of the first things you do is call your insurance company. After all, that’s what you pay them for, right? You expect them to take care of everything and make sure you’re fairly compensated for any damages or injuries. Unfortunately, that’s not always the case.

What is a Car Totaled Insurance Low-Ball?

Car Totaled Insurance Low-BallSource:

A car totaled insurance low-ball is when an insurance company offers you a settlement amount that is much lower than the actual value of your car. This can happen when your car is declared a total loss, meaning the cost to repair it is more than its actual cash value.

Insurance companies use a formula to determine the actual cash value of your car, taking into account factors such as its age, condition, mileage, and market value. However, this amount may not be enough to cover the cost of a replacement vehicle or the remaining balance on your car loan.

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If you’re offered a low-ball settlement, it’s important to understand your options and how to negotiate with your insurance company to get a fair payout.

Why Do Insurance Companies Low-Ball?

Insurance Companies Low-BallSource:

Insurance companies are in the business of making money, and paying out large settlements isn’t good for their bottom line. They may try to low-ball you in the hopes that you’ll accept a smaller payout and they can close the claim quickly.

They may also use tactics such as delaying the claims process, denying coverage, or questioning the extent of your injuries to try to reduce your settlement amount.

What Are Your Options?

Car Accident OptionsSource:

If you’re offered a low-ball settlement, you have several options:

  • Negotiate: Don’t be afraid to negotiate with your insurance company. Gather evidence such as repair estimates, receipts, and photos to support your claim, and be prepared to make a counteroffer.
  • Hire an attorney: If negotiations aren’t successful, you may want to consider hiring an attorney who specializes in car accidents and insurance claims. They can help you navigate the claims process and fight for a fair settlement.
  • File a complaint: If you believe your insurance company is acting in bad faith, you can file a complaint with your state’s insurance commissioner. They can investigate the claim and take action if necessary.
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How to Avoid a Car Totaled Insurance Low-Ball

Avoid Car Totaled InsuranceSource:

The best way to avoid a car totaled insurance low-ball is to be prepared:

  • Know your policy: Familiarize yourself with your insurance policy and understand what’s covered and what’s not.
  • Get multiple estimates: If your car is damaged, get repair estimates from multiple shops to ensure you’re getting a fair price.
  • Document everything: Take photos of the accident scene, damage to your car, and any injuries. Keep all receipts and documents related to the accident.
  • Don’t sign anything without consulting an attorney: If you’re unsure about a settlement offer or other documents, don’t sign them until you’ve consulted with an attorney.


A car totaled insurance low-ball can be frustrating and stressful, but it’s important to remember that you have options. Don’t be afraid to negotiate and seek help if necessary. And remember, the best way to avoid a low-ball settlement is to be prepared and know your rights.

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About the Author: D. Jolly