Many car insurance companies will say that they use a minimum of three schemes or methods to decide the actual value of a vehicle including computer generated quotes from dealers, value books and local market research. In this sense, you may think that local area refers to your current locality, but it is not usually specified by the insurance company.
If for any reason, the insurer cannot find any auto replacement in your neighborhood so that they will have to source for one outside your local area, the total value of your car will be affected. For instance, if you currently reside in New York, the cost of replacing your vehicle in the city will be more expensive than in the suburbs. The insurance company will make use of quotes from suburbs as estimates to determine pricing. The main reason for totaling a car is to enable the insured individual buy the same vehicle that is totaled in an accident in the local market. Because insurance firms use three different schemes to determine the actual value of a totaled car, an insured person may end up with a car cheaper than the totaled one.
It is not possible to determine the amount of value you will get if your insurance firm does not disclose to you how they determine it. Some of the quotes you can get include Aviva Car Insurance Quote, AIG Car Insurance Quote, Northbridge Car Insurance Quote, Gore Mutual Car Insurance Quote, Hagerty Car Insurance Quote, Wawanesa Car Insurance Quote, Intact Car Insurance Quote, Economical Car Insurance Quote and Travelers Car Insurance Quote.
Fortunately, you can do some calculations to enable you and your insurance company determine the totaled value. Firstly, you have to present a valid proof that the condition of your car was good when the accident took place; a car in good condition has a better value than a wrecked one. Provide a copy of maintenance records which include inspection and oil changes by an authorized mechanic. Such record will prove to your company that your vehicle was regularly maintained, which implies that it was in a good shape when the accident took place.
Again, you need to install special features such as anti-theft system, multimedia system, rear view camera, harness seat belt or anti-lock brakes. A car insurance company may give you a higher quote due to some particular upgrades, so ensure that your insurer considers that in their evaluation.
Another thing to do is locate a minimum of three dealers and request for quotes on replacement from them. Ensure that all the dealers are in your local area or they are located at least within a short driving distance from your residence. Give the quotes to your insurer and ask them to give a list of car dealers who can provide a vehicle for the listed price in the quotes. You can opt to do mediation if you get less than what you expect or you are not satisfied with the value determination of the company. This means that you will present the case to a neutral party or arbitration to help settle the dispute or you can present a formal inquiry to a court.
You can always visit us in person to get car insurance quotes from us:
2110 – 18 Harrison Garden Blvd
North York, Ontario