Total Loss Evaluation-Autombile
Question: Ever wonder how an insurance company places a value on an auto after it has been declared a total loss?
Answer: It depends.
Many insurance companies utilize an independant service such as CCC or ADP that perform a market research and keep a database of similar vehicles in their system. They charge the insurance company a fee for their service and in exchange provide a detailed multiple page report . Some insurance companies have contracts with services such as CCC and ADP and all vehicles that are under consideration for a total loss are placed through the service. (how do you think companies like CarFax get their info?)
Ask your adjuster for a copy of the “Total Loss Evaluation” report so you can see how they derived at the value.
There are times , especially on lower valued vehicles when the insurance company may simply use the NADA book for their value. This saves them the expense of using another service. My experience in handling total loss evaluation when I was a claims adjuster/manager and in talking to other adjusters throughout the years reflects that the Blue Book value is seldom used. The perception is that NADA is more reflective of the market if indeed one of the services above is not utilized.
So, in conclusion, make sure and ask for a copy of the total loss evaluation, ask for sales tax on top of the evaluation as well as the title fee. If you dispute the value, make sure and come armed with written quotes from at least 3 car dealers wherein they state the range for what they would expect to sell a similar car for on their lot.
Gary Doehling Personal Injury Law Firm P.C. helps those that have been injured in auto accidents. Please call toll free 866-941-9370 to schedule a free consultation.
Claims Manager
