Appealing Total Loss Claims

If your car has been in an accident, your insurance company will compare the cost of repairs to the value of your vehicle. If the cost of repair is close to or more than the value, your insurer will declare your vehicle a total loss and compensate you for the value of your car rather than the cost of repairs. If you believe that the insurance company undervalued your car in their report, you can dispute their decision by proving its actual value and showing that it was well-maintained. You can do this by gathering and submitting evidence, such as receipts and other proof of upgrades, add-ons, and customizations, as well as getting your own independent appraisal. You can also write an appeal letter and, in some cases, hire a lawyer to help you with the appeals process.

Gathering evidence to support your appeal

• Obtain the Insurance Company's Report: Start by requesting and reviewing the insurance company's report that led to the total loss declaration. Look for any inaccuracies or missing information, such as incorrect mileage, overlooked upgrades, or optional features.
• Gather Your Records: Collect and organise all relevant records that demonstrate the value and condition of your vehicle. This includes receipts for repairs, upgrades, add-ons, and any other proof of maintenance or improvements.
• Research Comparable Vehicles: Conduct research to find similar vehicles (same make, model, and year) in your area to determine their value. Websites like Kelley Blue Book can be a great resource for this. Compare these values with the insurance company's assessment of your car's value.
• Obtain Repair Quotes: Contact reputable mechanics or repair shops and request written quotes for the repairs needed to get your vehicle back on the road. This can help you negotiate with the insurance company, especially if their estimated repair costs seem inflated.
• Independent Appraisal: Consider getting an independent appraisal of your vehicle. Contact local body shops or garages to find a qualified appraiser. Having a second opinion from an unbiased source can strengthen your case when disputing the insurance company's valuation.
• Emphasise the Emotional Impact: While not strictly evidence, emphasising the emotional toll of the accident and how it has affected your life can be a powerful tool during negotiations. It adds a human element to your appeal and can make your case more compelling.

Remember, the more evidence and documentation you can provide, the stronger your case will be when appealing the total loss claim. It's also essential to know your rights as an insured party and understand the specific laws and regulations in your state regarding auto insurance claims and disputes.

Writing an appeal letter

Yes, you can appeal an auto insurance claim of total loss. Here is a step-by-step guide on how to write an appeal letter:

Step 1: Gather Relevant Information

First, gather all the information related to your claim, including the original claim form, supporting documentation, and the letter of rejection from the insurance company. Make sure to review the reason for the rejection and identify any errors or missing information so you can address them in your letter.

Step 2: Organize Your Information

Organize your information in a logical and easy-to-understand manner. This will help the insurance company to easily follow your argument and understand your case. A suggested structure is as follows:

• Insurer's reason for error
• Your proposal for amending the error
• Any supporting evidence and/or documentation

Step 3: Write a Polite and Professional Letter

Remember that an appeal letter is a formal document, so it should be written in a polite and professional tone. Begin by addressing the insurance company and the person who denied your claim. State the reason for your letter and provide a concise overview of your case. Maintain a calm and respectful tone throughout, even if you are frustrated with the rejection.

Step 4: Include Supporting Documentation

Include copies of any supporting documentation such as repair estimates, appraisals, photographs of the damage, etc. Make sure to reference these documents in your letter and explain how they support your claim. Keep a copy of these documents for your records.

Step 5: Explain the Error or Omission

If your claim was denied due to an error or omission, explain this in the letter and take responsibility for it. Provide any additional information or clarification that may help your case.

Step 6: Request a Review

Formally request that the insurance company review your case and provide an explanation of their decision. Indicate that you are willing to provide any further information or documentation if needed.

Step 7: Conclude the Letter

End the letter by thanking the insurance company for their time and consideration. Provide your contact information, including your telephone number and email address, so they can easily reach you if needed.

Following Up

After sending the letter, it is important to follow up with the insurance company. You can do this by telephone or email to inquire about the status of your case. Keep detailed notes of any correspondence or conversations you have with the insurance company.

Hiring an attorney

If you're unhappy with your insurance company's decision to write off your car as a total loss, you can dispute their decision by proving its actual value and showing that it was well-maintained. Hiring an attorney can help you navigate this process and improve your chances of success. Here are some tips on hiring an attorney to appeal an auto insurance claim of total loss:

• Know when to hire an attorney: Consider the complexity of your case and the time you can dedicate to handling the claim yourself. If you have a large or complex case, or if you feel that an attorney can get you a higher payout, it may be worth hiring one. Additionally, if you are having difficulty establishing fault or there is a significant difference between the amount you believe you are owed and the adjuster's quote, an attorney can be beneficial.
• Choose a specialist: Look for an attorney who specialises in insurance lawsuits. You can start by asking friends, family, and colleagues for referrals or checking with your employer to see if they offer any legal services as an employee benefit. The American Bar Association's list of state bar associations is also a good place to start your search.
• Check credentials: Research the attorney's credentials by looking them up on your state bar association's website. You can also check sites like Avvo, a lawyer directory site, to see what clients have said about the attorney and their staff.
• Ask questions: When evaluating a potential attorney, consider asking questions such as how long they have been admitted to the state bar, whether their license is active, and whether they work directly with clients or hand off cases to staff.
• Free initial advice: Most lawyers provide free advice before you hire them for your insurance claim. Take advantage of this to consult with several attorneys and find one who is a good fit for your case.
• Contingency fee arrangement: Many attorneys work on a contingency fee basis, meaning they receive a percentage of your insurance payout if they win your case. This can be beneficial as it motivates the attorney to get you the highest payout possible. However, they may only take your case if it is worth their time.
• Understand the process: Familiarise yourself with the appeals process by reviewing your insurance company's policy. Know the specific steps involved in filing an appeal, such as submitting a formal appeal letter and providing additional information to support your claim.
• Gather evidence: Work with your attorney to gather evidence that supports your appeal. This may include physical and digital copies of documents related to your claim, photos of property damage and injuries, and invoices from medical providers and auto repair shops.
• Be prepared to negotiate: Insurance settlements can be negotiated. Work with your attorney to propose a counteroffer backed by facts and evidence as to why your payout should be higher.

Understanding the claim denial letter

• Lapsed insurance policy
• Lack of coverage for the type of damage incurred
• Insufficient coverage limits
• Accident involving an uninsured motorist
• At-fault driver's insurer denied the claim

If you receive a denial letter, carefully review the reasons for the denial and gather any supporting evidence, such as police reports, eyewitness statements, photographs, and medical reports. You can then submit a claim appeal letter to the insurance company, explaining why you believe your claim should be accepted and providing any relevant evidence.

If you are not satisfied with the insurance company's decision, you may need to hire an attorney to review your case and draft a demand letter. Your attorney can also help you understand your rights and navigate the appeals process, which may involve arbitration or litigation.

Reviewing your insurance policy

• Understand your policy terms and conditions: Familiarize yourself with the fine print of your insurance policy. Look for specific clauses related to total loss claims, including any conditions or requirements that you need to fulfil.
• Know your coverage limits: Different types of insurance coverage have varying policy limits. Understand the maximum amount your insurance company will pay for a single accident or claim. This information will be crucial when negotiating a settlement.
• Review your rights and responsibilities: Insurance policies outline your duties and rights as the policyholder. For instance, you may be required to immediately report losses and protect your vehicle from further damage. Understanding these clauses will help you take the necessary steps to comply with your insurer's requirements.
• Be aware of the appeals process: If you disagree with your insurer's decision, know your options for disputing the claim. Review your insurer's specific appeals process, including any deadlines or time limits for filing an appeal.
• Gather evidence: Collect all relevant documents, such as accident reports, photographs, witness statements, and mechanical assessments. This evidence will be crucial when disputing the insurer's valuation or repair estimate.
• Consider independent assessments: If you believe your insurer's appraisal is inaccurate, you can hire an independent appraiser or mechanic to inspect your vehicle and provide a second opinion. This can strengthen your position during negotiations.
• Understand the claim settlement process: Learn about the steps involved in processing a total loss claim. Know what documentation you need to provide and keep track of the claim's progress by maintaining regular communication with your insurance company.
• Review your state's regulations: Familiarize yourself with the laws and regulations specific to your state. Each state may have different thresholds for determining total loss, and understanding these criteria will help you assess the validity of your insurer's decision.
• Seek legal advice if needed: If you are unable to resolve the dispute with your insurer, consider consulting an attorney specializing in insurance claims. They can provide guidance on your legal rights and options, including arbitration or litigation.

Frequently asked questions