How Will I Get My Car Fixed?

If your vehicle can be repaired for less than its fair market value, the insurance company must pay the costs of repair. If the cost to repair your vehicle exceeds its fair market value, problems frequently arise when you and the insurance company disagree on what the fair market value is. If you are facing this situation after your car accident, consider the following options:

• Ask your own automobile insurance company to have their claims adjuster estimate your vehicle’s fair market value (if you have collision coverage).
• Try working a “collateral exchange.” Your wrecked vehicle was the collateral on the loan to the finance company. The finance company shouldn’t care whether it has your vehicle as collateral or another of equal value.
• Try buying another vehicle and financing the $3,000 balance owed into the purchase price, allowing you to pay over time, while enjoying your new vehicle. For this to work, you will have to deal with the same dealership that sold you the original vehicle.
• If you had made any recent repairs to your vehicle, you should provide copies of the receipts to the claims adjuster. Your recent repair costs can help you to show that your vehicle had a value greater than the “average” vehicle of that make and model.
• Did you purchase Credit Life Insurance or Credit Disability Insurance with your vehicle? If so, you are entitled to a rebate of that portion of the premium that was “unearned.”
• If have an extended warranty on your vehicle, you must contact the dealership to make sure that you are refunded the unused portion of the premium you paid for it.