Question 1

How is the Value of a Car Determined?

Accepted Answer

Trying to guess at the actual cash value (ACV) of a vehicle can be tricky. There are several factors used to evaluate the amount of money that will be reimbursed to you or paid toward repairs from your insurance company.
The first, and easiest way to get a beginning estimate of value on your damaged vehicle is by using a service such as Kelley Blue Book (KBB) or National Automobile Dealers Association (NADA). These services both offer a wealth of information, much of which is free online.
Each insurer has its own way of determining the value of a vehicle. And sometimes they can be quite different, depending upon how the amount was calculated.

Question 2

What is the Definition of Fair Market Value?

Accepted Answer

The term fair market value (FMV) means the amount of money a buyer would pay for your vehicle before the accident happened. It is usually the amount of money that you would sell it to an individual party, where you both would agree is a fair selling price.

Question 3

What Factors are Involved in Determining Fair Market Value?

Accepted Answer

The insurance company uses its own resources to calculate the FMV, or what they believe the vehicle would fairly sell for before the accident damaged or destroyed it.
The most important factors used to determine the fair market value are:

The make, model, and year of production of the car itself
The actual odometer mileage on the vehicle at the time of the accident
The condition of the vehicle
The accident history of the vehicle

Those aren’t the only influencing factors, of course. Since vehicle condition depends upon how well the car has been taken care of and maintained, there are many reasons that insurance companies may reduce the estimated value.

Question 4

Can I Negotiate Fair Market Value with My Insurance Company?

Accepted Answer

You not only are allowed to negotiate with your insurance company, you should if you feel that the estimate is too low. If the insurance adjuster is willing to consider it is another story.
Your insurance company is a business, and the goal of all businesses is making money. You may never hear of an insurance company paying out more than they have to, but we all have heard of cases in which the actual cash value offered was too low. This is when it’s time to call in a lawyer that specializes in negotiating car or truck accident settlements.
At Shuman Legal, we deal with insurance companies and adjusters every day. We have had years of experience negotiating the best and most fair settlements for our clients. Give us a call for a free case review if you feel that your insurance company is not being fair with you and we’d be happy to give you an honest expert assessment of your own situation.

Question 5

What if My Car is Totaled and I Owe More Than It’s Worth?

Accepted Answer

This is a common question, and an important one. What if you still owe money on your auto loan and your vehicle is totaled?
This is a great example of why you should carefully examine the settlement offer from your insurance company. First know that even if the car is a total loss, if you still owe money on it, that money will have to be paid by someone, whether it be your insurance company or yourself.
If the actual cash value of your vehicle is more than what you owe on your loan, you won’t have to worry about it. The loan will be paid off with the settlement from the insurance. However, if the reimbursement amount is less than what you still owe on the vehicle, you are still financially obligated under the law to pay it.
This is where the situation could get sticky. The amount offered by your insurance company should be able to, at minimum, cover the rest of your loan. If it doesn’t, it’s time to negotiate with your insurance company. Some insurance companies will negotiate with you. If yours doesn’t, it may be time to call an attorney to negotiate on your behalf.

Question 6

How Do I Determine if I’m Offered a Fair Settlement from the Insurance Company?

Accepted Answer

Since every accident is unique, it’s hard to know if the amount offered by your insurance adjuster is a fair amount or if the offer is too low. Our website offers an accident settlement calculator to help determine if your settlement offer is fair. This free tool can help you decide if you need to settle, negotiate, or call in the professional car accident lawyers at Shuman Legal

Question 7

I Disagree with my Settlement from the Insurance Company. How do I File a Complaint?

Accepted Answer

If you find that you and the insurance company are not able to come to a fair settlement amount, you do have the option of filing a complaint through the Illinois Department of Insurance. This department works to ensure that insurance companies are following the state insurance laws. They will investigate your complaint and determine if the settlement followed the law.

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