Originally Posted by supton
Fair enough. Some people don't realize that insurance companies pay out what they think the car is worth, and not a new car value. They don't realize that if a vehicle was totaled out, that they'd have to pay for the difference between what they get and what they want for their next vehicle--meaning, they still have to finance and/or pay cash out of pocket so as to get into another vehicle.
In your case, one vehicle is worth $3,500, minus the $100 deductible (and whatever the ins company tries to stiff you). Will $3,400 get you into your next car? I ask because you implied that the payout would purchase your next car. If so, great, it makes sense to me. Me, I'm not sure $3k would be enough to buy my next car, my tastes seem to run too high, so such a plan wouldn't work for me.
Well it's not what the insurance company thinks, they usually go by book, typically Nadaguide.com. And they pay out retail which is what they expect you will have to pay to get the same car. You can fight them for more if your car has more options than what you could find at retail.
Also having it makes the process a lot smoother. If you don't, you have to chase the other insurance company. Here they just send you a list of places to get the car fixed and you just go there, sign some paperwork and they pay directly.