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How Connecticut Insurance Companies Value a Total Loss

Most large insurers handling total loss claims in Connecticut use outside valuation vendors such as CCC, Carfax, Autosource or Mitchell.
These systems allow the adjuster to enter your vehicle’s year, make, model, mileage, engine, options and other details. The insurance
appraiser can then apply additions or deductions for mileage, optional equipment, prior damage and overall condition.

The primary driver of the final number is the use of comparable vehicle sales or auction results to estimate what your vehicle would
have sold for just before the accident. Unfortunately, the insurance appraiser has wide discretion in choosing which comparables to use,
and that’s where many Connecticut vehicle owners see problems.

Common Issues With Total Loss Valuations in Connecticut

We frequently see valuation reports that do not accurately reflect the true pre-accident market value of a Connecticut vehicle.
Some of the most common issues include:

• Using high-mileage comparables:
  The appraiser may select vehicles with significantly higher mileage than yours and then apply large mileage adjustments.
  This can produce a value that does not match what your low-mileage vehicle would have actually sold for.
• Limiting the geographic search area:
  By restricting the search radius, the system may ignore better comparables in nearby markets, reducing the accuracy of the valuation.
• Using dissimilar vehicles:
  Comparables that differ in trim level, equipment, condition or configuration can undervalue your specific vehicle.
• Failure to recognize specialty vehicles:
  Specialty vehicles—such as diesel pickups, well-equipped trucks or unique configurations—often hold their value better than standard models.
  If the appraiser treats them like ordinary vehicles, the valuation can be significantly too low.

In many cases, the examples chosen simply don’t measure up to your actual vehicle, and the resulting “market value” does not reflect what
you could have reasonably obtained in an open Connecticut or regional market.

Connecticut Total Loss Valuation Dispute Resolution

Total Loss Valuation Dispute Resolution – Call 772-359-4300

What Can a Connecticut Vehicle Owner Do?

When faced with a total loss offer that seems unfair, a Connecticut car, truck or motorcycle owner has several options:

• Accept the lower settlement:
  This is the simplest option, but often leaves money on the table.
• Hire an independent Connecticut total loss appraiser:
  You can retain an experienced, independent appraiser to prepare a fair and objective valuation that reflects your vehicle’s
  true pre-accident market value.
• Consider legal action:
  In some cases, litigation may be appropriate, especially if the insurer refuses to negotiate in good faith.

Choosing the right independent appraiser is critical. Before hiring, do your due diligence:

• Check reviews on sites such as BBB, Angie’s List, Ripoff Report, Pissed Consumer, etc.
• Find out whether the appraisal firm also works for insurance companies, which can create conflicts of interest.
• Be cautious of firms that actively solicit business from adverse insurers while claiming to represent consumers.

These conflicts can cost you far more than just a few dollars—your appraiser’s primary loyalty should be clear and aligned with you.

Licensed by the Connecticut Insurance Department

Licensed by the Connecticut Insurance Department

The Appraisal Clause in Connecticut Auto Insurance Policies

Most auto insurance policies, including those issued in Connecticut, contain an Appraisal Clause.
This provision allows both sides to hire their own appraisers when there is a dispute over the value of a total loss.

Typically, the process works as follows:

• You hire an independent appraiser to represent your interests.
• The insurance company hires its own appraiser.
• The two appraisers attempt to negotiate a fair settlement value.
• A common compromise is the median of the two appraisers’ valuations.

If the appraisers cannot agree, they each propose candidates to serve as an umpire. The cost of the umpire is usually
shared between you and the insurance company. If neither side can agree on an umpire, one may be appointed by a magistrate
in your county.

The umpire’s decision is typically treated as final for the purposes of the appraisal process, although you may still
have the option to pursue litigation if you believe the outcome is unjust.

Understanding the Insurance Company’s Incentives

The business model of all insurance companies is straightforward:
collect as much as possible in premiums and pay out as little as possible in claims.
This doesn’t mean every adjuster is acting in bad faith, but it does mean you should approach any total loss settlement
offer with a critical eye.

When you receive a total loss valuation in Connecticut, compare it to real-world asking prices for similar vehicles and consider
whether an independent appraisal and the Appraisal Clause might significantly improve your outcome.

Additional Fees and Typical Costs

Additional fees you may incur include:

• $275.00 for representation in Appraisal Clause negotiations.
• Half of an umpire’s fee if an umpire becomes necessary.

On average, approximately 10% of Appraisal Clause cases proceed to an umpire.
Even with these additional costs, many Connecticut vehicle owners still see a substantial net gain compared to accepting
the insurer’s initial offer.