I received an e-mail last week about a claims problem a friend/client experienced on their auto. Their car was legally parked on the street and was struck by a vehicle that had lost control. The client's vehicle was deemed a total loss by the other party's insurance carrier but the offer the insurance company made to my client was far short of what their vehicle was worth. The insurance company said that they had found two vehicles in a town 245 miles away that could be purchased for what they were offering my client.
Here is my advice. Call a local dealer and describe your vehicle in detail including mileage and accessories. It is best if you speak to the used car manager when doing this. Always get that person's name and title. Ask that person that if your vehicle as described was on their lot what would they ask for it if someone wanted to buy it. You might want to call more than one dealer if that option is available You then have ammunition if you will to discuss a fair deal with the insurance company. What a vehicle will cost in a city 245 miles away has little bearing on this situation and should not even be considered. I have used this technique several times over the years and have always been able to get my client a better deal.

Auto insurance pitfalls

Far too often people purchase auto insurance at the lowest liability limits required by the state of residence. This can be a very bad mistake. Todays autos with all their gadgets cost a lot of money. If you damage one it can cost you more than you might imagine. That is just the property damage to the auto. The cost of human injury can and usually is much higher.Today a hospital stay may cost upward of $2,000 per day. Courts also award pain and suffering damages to individuals who may be injured by your negligence. Solution: Buy higher liability limits and play it safe.
These higher limits are generally much cheaper than people realize but you need to ask an agent to provide a quote for you. I have one client who increased his liability limits from the state minimum to $100,000/$300,000/$50,000 for about $75 more each year. That's right; the cost can be small indeed when you consider the level of risk that you are taking on when you drive an auto.
One other point; always ask your agent the A.M. Best rating of your insurance company. Look for companies rated A- or higher. Insolvent companies don't pay claims. These type companies leave you, the insured, holding the bag.