Overview: A total loss dispute occurs when a car owner disagrees with their insurance company’s valuation of their total loss vehicle.
Whether you drive a car, motorcycle, RV, or heavy truck, accidents happen, which is why you carry motor vehicle insurance. Unless your vehicle is covered by an Agreed Value policy, the amount you’re paid when your car is declared a total loss is set by the insurance company. How does an insurer arrive at that number? And how can the Appraisal Clause help resolve a dispute over it?
Franklin Colletta, Licensed Independent Appraiser — Telephone consultations are always free of charge.
How Insurers Value a Total Loss Vehicle
Most large insurers use outside computerized vendors such as CCC, Carfax, VVS, Autosource, or Mitchell, entering your vehicle’s year, make, model, mileage, engine, and options. The system allows the appraiser to adjust for mileage, equipment, prior damage, and condition. The primary factor in the final number is comparable vehicle sales or auction results.
Where These Valuations Go Wrong
An insurance appraiser can be selective about which comparables to include, and the examples used often don’t match the condition or specification of your vehicle. Owners researching an improper CCC total loss value, a Mitchell vehicle valuation report, a disputed Autosource car value, or an inaccurate VVS valuation report are usually running into one of a few recurring problems:
- Comparables with significantly higher mileage, triggering costly downward mileage adjustments that don’t reflect what a low-mileage car would have sold for before the loss
- A narrowed geographic search radius that shrinks the comparable pool
- Comparable vehicles that aren’t truly similar to yours in trim, condition, or options
- Failure to recognize that specialty vehicles, such as diesel pickups, hold value differently than the average vehicle
Your Options When You Disagree With a Total Loss Offer
You can accept the lower settlement, or you can hire an independent appraiser to prepare a fair, objective valuation of your car’s true pre-accident value. Vet any firm before hiring it: check reviews on BBB, Angie’s List, Ripoff Report, and Pissed Consumer, and confirm whether the firm also works for insurance companies. A firm that takes insurer work alongside private clients, especially when insurer work makes up the bulk of its business, has an incentive to favor the insurer’s position.
The Appraisal Clause Process
In the best case, the insurer accepts your appraiser’s report outright. If not, most states recognize the Appraisal Clause: each side’s appraiser negotiates toward a fair settlement, typically landing near the median of the two values. If the appraisers can’t agree, each proposes a candidate umpire; the cost of the umpire is split between you and the insurer. If neither side agrees on an umpire, a magistrate in your county appoints one. The umpire’s decision is non-binding, and you retain the right to litigate.
Keep in mind that an insurer’s business model is to collect as much as possible in premiums and pay out as little as possible in claims. That’s the context for the settlement offer you receive.
Cost
- Automobile valuation appraisal: $275 for most cars
- Appraisal Clause negotiation representation: an additional $275
- RV and heavy equipment: call for rates
Read customer reviews of The St. Lucie Appraisal Company
Before making your payment, please email the insurance company’s CCC worksheet or other valuation report to contact@stlucieappraisal.net.
Typical Return on Investment for a Total Loss Dispute
Service Areas
What Our Clients Say
Don T (California): Thank you for your services. I am happy with the total loss valuation appraisal and feel the valuation to be true. When I drive to Tesla supercharger stations, none of the other Teslas stand out or is as nice as mine, and I get that comment all the time from Tesla and non-Tesla owners. It was my perfect dream car and is irreplaceable. You just can’t put a price tag on something like that. So it’s very insulting when Geico and CCC tries to value my car at such a ridiculous amount. So thank you for your great work and I will definitely be leaving you great reviews. Franklin was very helpful and extremely knowledgeable. He took his time to explain the process and what I would be expecting before I even hired him. I felt very comfortable working with him and couldn’t be more happy with his services. If you had a car that you loved and cherished and is irreplaceable, and you want to make sure it gets appraised at the right value even though you can’t put a price tag on it, then Franklin and The St. Lucie Appraisal Company is your go-to appraiser. Thanks Franklin!
Gino B (Washington): I know firsthand that if you are reading this testimonial, you’ve had some car problems (stolen, damaged, accident, etc.) and are probably in the right spot. When my truck was stolen and recovered with a lot of damage, my insurance company, USAA, who I thought would be there for me when the chips were down, made me a really low-ball offer. After some simple internet searches, it seems USAA has a habit of letting down their insurance customers. I was pulling my hair out battling USAA’s lowball offer until I found Franklin’s St. Lucie Appraisal team. Franklin quickly helped me understand my rights and options, provided expert advice, and engaged with all parties as my representative in the appraisal process, resulting in an award letter almost 3 times higher than USAA’s initial low-ball offer. USAA’s initial offer was about $5,000; Franklin was able to negotiate with other appraisers and get me a fair Actual Cash Value of $15,000 through the process. He was consistently available, professional, friendly, and considerate, and took the time to understand my claim and help ensure I took the steps that were right for me. Before you go anywhere else, drop his team a line. You will be glad you did.
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TOTALLOSSDISPUTE.COM is a service of The St. Lucie Appraisal Company. This is an Open Education Resource focused on automobile total losses, the appraisal clause, collective knowledge, and the sharing of scholarly content.