When Josh Lisman's 2018 Audi was involved in what seemed like a minor fender bender earlier this year, he expected a simple repair.
Instead, he got a harsh lesson in how some insurance companies handle totaled vehicles.
"There was one car parked in the street, and I hit it," Lisman told us, pointing to the accident location.
What Lisman thought to be a straightforward fix turned into something much more complicated. The repair costs were so high that his insurance company declared the car a total loss.
"I didn't think there was that much damage, but apparently there was," he said.
But the real shock came next: his insurer offered him just $14,000 for the vehicle — thousands below its trade-in value.
"I thought they were kidding!" Lisman said.
Watch a driver describe how he was lowballed after a wreck:
Getting what your car is actually worth
Lisman's body shop referred him to Matt Neff, who runs an independent appraisal franchise called Auto Appraisal Network.
Neff specializes in helping drivers get fair payouts from insurance companies for totaled vehicles.
"They want to get you off their desk for the lowest amount possible, as fast as possible. And a lot of times that means there’s a pretty significant gap between what your car is actually worth and what they are offering you," Neff said.
The problem is becoming more common.
A recent report by LexisNexis finds more cars are being deemed total losses – not because damage is getting any worse, but because repair costs have increased significantly.
Tips for negotiating your car's value
When negotiating your car's value with an insurance company, personal finance company Bankrate recommends you:
- Gather all documents related to your vehicle, including proof of recent improvements.
- Figure out the amount you're willing to accept.
- Consider getting a public adjuster like Neff.
If you're still unhappy with the settlement offer, you could hire an attorney.
For Lisman, hiring Neff's appraisal service was all he needed — and worth the few hundred dollars he spent.
"I ended up with roughly 52% more than my initial offer from my insurance company," Lisman said.
In the end, he received $20,000 — $6,000 more toward a replacement car than the insurance company's original offer.
So get an appraisal if you feel cheated, so you don't waste your money.
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