How does an insurer calculate a total loss value?
By Jeff Zigman, TRUEclaims · Updated
The short answer
The insurer sets the car's actual cash value, usually from comparable vehicles for sale or recently sold, adjusted for mileage, options and condition. If those comparables are the wrong trim, have different mileage or come from another market, the value and the offer come in low.
Whether a car is totaled depends on the state: some use a percentage of the car's value, others the Total Loss Formula (repair cost plus salvage value against the car's value).
Ask for the full valuation report and check every comparable. A low valuation can usually be challenged through the policy's Appraisal Clause.
Take the property-damage-only calls nearby firms turn away
More questions
- Can a personal injury firm take property-damage-only claims?
- What should an injury firm do with property-damage-only calls?
- How do I get referrals from other law firms?
- Can a law firm pay another law firm for referrals?
- What is the Appraisal Clause on a total loss?
- How much is a diminished value claim worth?
General information, not legal advice. Figures are past True Claims results or illustrative, as labelled. TRUEclaims is not a law firm.