By Virginia Allen
I knew instantly my car had just been totaled. My 2011 little blue Mazda 3 was no match for the sedan that had just slammed into me on the interstate, deploying my airbag and sending my car into the guardrail.
As the initial shock and relief of being OK wore off, the dread of dealing with insurance and buying a car sank in. While I do not recommend buying a car in less than two weeks, sometimes, as was my case, the demands of life require a large financial decision be made quickly.
I sincerely hope you never find yourself staring at a paid-off, totaled car, but if you do, there are a few practical things to know.
Winning the Insurance Battle
First, your insurance company is not your friend. Not to name any names (Geico), but after having the same insurance since I started driving, I naively thought my insurance company would reward my loyalty with what I considered to be a fair price for my vehicle. I had just received my state tax bill for my car two weeks prior, so I knew how much my car was worth on paper—surely, I would at least receive that amount from insurance. Nope.
My first mistake was filing my claim with my insurance company instead of the insurance of the driver who caused the accident. But since I had already filed the claim, I proceeded to plead my case with insurance, which I did in a couple of ways.
Your insurance might not tell you this, but you can receive a larger payment if you submit records and payments of recent car repairs and maintenance, even down to your last oil change.
Second, don’t be afraid to ask to speak to the manager of the insurance adjuster assigned to your claim. The “boss” might be able to offer you more, especially if you remind them that there are plenty of other insurance companies that would be happy to have your business. Don’t sign anything until you are satisfied with the insurance payout amount.
Car Shopping: Avoid Lemons
Once you know how much you are receiving for your car, this will help determine how much you can spend on your new car. Before you begin car shopping, do a budget deep dive to determine how much you can afford to spend on a monthly car payment. And keep in mind that the actual price of any car you look at will be two to three thousand more than advertised once taxes, insurance, and so forth are added to the purchase price.
I am speaking from the experience of purchasing a used car, but many of the following tips will also apply to buying a new car.
If buying used, the most important thing to keep in mind is that every make and model has lemon years. Subaru Outback’s are generally fantastic cars, but the 2013 and 2014 models are known to have a lot of issues. The websites CoPilot and CarBuzz offer a great breakdown of the best and worst years for each car make and model. Don’t ever buy a car before confirming the model year receives high reviews. I also recommend looking up the crash test on YouTube for any vehicle you are considering purchasing.
Most car dealerships will offer the CarFax report on a given vehicle to you free of charge. Pay careful attention to the maintenance record and if the vehicle was in a prior accident. Give the CarFax more weight than anything the car salesman tells you. Salesmen have one job—to sell cars. When I was shopping for my car, I had a salesman tell me the prior damage on three sides of a vehicle was likely due to hail and not an accident. I get it—he had a job to do, but needless to say, I did not purchase that vehicle.
Negotiate
Once you find a few cars you like, negotiate. Many dealerships can’t come down that much in price, but they can likely come down a little, especially if they know you are also considering purchasing a different vehicle from another dealership.
Once you settle on a car, if you are not paying cash, put as much down as you reasonably can to lower your monthly payments. It is also critical to purchase gap insurance, which the dealership will likely offer you. This ensures you are not left with a car payment if your car is totaled and not yet paid off.
If you’re anything like me, you will probably wonder if you just made a terrible financial decision after you sign on the dotted line. Relax. Yes, it’s a huge purchase, but also likely a necessary one, and if you did your research before your purchase, you have done all you can to make a smart financial decision.
ABOUT THE AUTHOR
Virginia Allen is a podcast host and senior news producer at The Daily Signal, where she co-hosts the “Problematic Women” podcast. She covers immigration, border security, Israel, and national security.
Originally from New England, Allen earned a government degree from Regent University. After a year in South Africa as a missionary, she began her media career in Washington, D.C. with The Heritage Foundation and The Daily Signal.
