How is the fair market value of my totaled vehicle determined?
When an insurance company totals your car, the company must pay you what the car was worth before the accident occurred. This amount is called the fair market value, and includes adjustments for the vehicles features, mileage and prior damage. There are several firms that evaluate and publish automobile market values (like the well-known Kelly Blue Book) and the results can vary. Whether the insurance company uses one of these evaluation firms or does its own evaluation, the method the company uses must be documented and must comply with the procedures described in the Minnesota Fair Claim Settlement Act. You can ask to see the evaluation and ask how the fair market value was determined. If this information is not provided at your request, or if you believe it does not comply with Minnesota law, you should make a complaint to the Department of Commerce. You should check with dealers, newspaper ads, used vehicle publications, and other sources to gather your own information on your vehi
When an insurance company ‘totals’ your car, the company must pay you what the car was worth before the accident occurred. This amount is called the “fair market value,” and includes adjustments for the vehicle’s features, mileage and prior damage. There are several firms that evaluate and publish automobile market values (like the well-known Kelly Blue Book) and the results can vary. Whether the insurance company uses one of these evaluation firms or does its own evaluation, the method the company uses must be documented and must comply with the procedures described in the Minnesota Fair Claim Settlement Act. You can ask to see the evaluation and ask how the fair market value was determined. If this information is not provided at your request, or if you believe it does not comply with Minnesota law, you should make a complaint to the Department of Commerce. You should check with dealers, newspaper ads, used vehicle publications, and other sources to gather your own information on your
