As awful as it is to see your vehicle turn into a total loss after a crash, it can get worse. For instance, you might owe more on the car than insurance is willing to offer you. If this is the case for you, you need to know how to make sure your car is properly evaluated, and that you are aware of your options for coverage.

How Insurance Puts a Value on Your Car

Insurers will probably offer the "fair market value" for a car that has been totaled. That means they're willing to pay you what the car would have sold for prior to getting into a wreck. (If this fair market value is less than the cost of repairing your vehicle, then this is what makes your car a "total loss".) Let's flesh this out in an example:

You crash. According to two different mechanics, it would take $3,600 to fix your damaged car. According to Kelly Blue Book, your pre-crash car would have been worth $3,000. If your insurer thinks these prices are accurate, then they will say that your car is totaled, and then you will receive a check worth $3,000. But let's say you owe more than $3,000 on the car. You will be on the hook for the difference, but you have a couple of different things you can do.

• Was the car evaluated accurately? Maybe you can come up with different estimates for repairs and fair market value. Perhaps the fair market value left out your AC or custom equipment. You may be able to negotiate the settlement offer with your insurer.
• Do you have gap insurance? Hopefully you purchased this at the time you bought your vehicle, or you got this gap coverage through your insurer, because this will cover the difference between what you owe on the car and the insurance company's offer.

In summary then, in the immediate aftermath of a collision, you can report the crash to your insurer. Once you've got a claim filed, your insurer can start the valuating process. If you have gap insurance, be sure to reach that lender so that they can file a claim. You might also have the option to file a third-party claim against another driver if he or she is actually the one who caused the crash. A liability claim can be much more complex, however, and an opposing lawyer might get involved with that type of claim. If you face roadblocks to compensation, or if you think that an insurance company is acting in bad faith, then don't hesitate to talk to a car accident attorney about your case today!