Getting More Than the Book Value for Your Car

From the Insurance for Dummies by Jack Hungelmann

 One of the most difficult claims for an auto insurance adjuster to settle to a customer’s complete satisfaction occurs in a total-loss claim, where the cost to repair the car exceeds the car’s value. Here are some of the more common problems that occur in a total loss, with suggestions on how you can protect yourself or better your settlement.

Getting more than the book value for your car

If your car is a total loss, the retail value of your car at the time of loss needs to be established. Book value is the average selling price of a car like yours, with similar features and mileage, in a cleaned up, dent-free condition. Various used car guides list these prices.

You should know three things about book value:

• It’s the average selling price for a car like yours. Which means there were plenty of cars that sold for more — some even much more. Your mint car could be one of those. Of course, the reverse could also be true. 
• It’s a guide. It says so right on the cover. Not a bible. 
• It doesn’t always take into account the supply and demand factors in your particular area. A sports car in Alaska might not be worth as much as a sports car in Los Angeles.

For all these reasons, the book value will be different than your specific car’s pre-accident market value. (You can check out the blue book at www.kellybluebook.com.)