Accidents are an unavoidable part of driving in Massachusetts, which makes having the right insurance coverage essential. However, unless your policy includes an Agreed Value provision, the payout for a total loss is determined by the insurance company. How do insurers calculate your vehicle’s value—and should you consider hiring a total loss expert to ensure a fair settlement?
Typically, most large insurers use outside vendors such as CCC, Carfax, Autosource or Mitchell which allows them to input your automobile’s information such as year, make, model, mileage, engine, options, etc. There is also a section that enables the insurance adjuster to make additions or subtractions for mileage, optional equipment, old damage and conditioning issues. Then the primary factor in the valuation is the use of comparable vehicle sales or auction results to determine how much your car is worth. Unfortunately, an insurance adjuster can be selective in which comparables he or she uses. Many times, we’ll find that the examples don’t quite measure up to your auto.
Some interpretations include choosing vehicles with much higher miles and making costly mileage adjustments. This practice can lead to skewed results that don’t accurately describe what your low-mileage car would have sold for prior to the wreck. Another common practice is to limit the geographical search area, thereby reducing the number of comparable vehicles. An additional problem occurs when the insurance adjuster uses dissimilar vehicles to yours. Yet another common drawback is the insurance adjuster’s failure to recognize specialty vehicles, such as diesel pickups, that hold their value better than others.
What options does a Massachusetts vehicle owner have in this situation? One choice is to accept the insurer’s settlement offer. Alternatively, you can hire an independent automobile valuation expert to prepare a fair, objective report that reflects your vehicle’s true pre-accident value.
Choosing the right appraiser requires careful research. Review the company’s reputation on platforms like the Better Business Bureau, Angie’s List, Ripoff Report, and Pissed Consumer. It’s also important to determine whether the firm performs work for insurance companies as well as private clients. Potential conflicts of interest can impact the outcome, especially if insurers make up a significant portion of the firm’s business. In some cases, appraisers may even view the opposing insurance company as a prospective client.
Many policies include an Appraisal Clause, which provides a structured way to resolve valuation disputes. Each party selects an appraiser, and together they attempt to negotiate a fair settlement. A common resolution is a compromise between the two valuations. If an agreement cannot be reached, the appraisers may select a neutral umpire. The cost of the umpire is typically shared. If the parties cannot agree on an umpire, one may be appointed by a local magistrate. While the umpire’s decision can help resolve the dispute, it does not necessarily prevent either party from pursuing litigation.
It’s also important to keep in mind that insurance companies operate as businesses—collecting premiums while managing claim payouts. This perspective can be helpful when evaluating a total loss settlement offer.
Additional costs may include a fee of $275 for representation during Appraisal Clause negotiations, as well as half of any umpire fee if one is required. On average, only about 10% of Appraisal Clause cases proceed to the umpire stage.
Please email the insurance company CCC or other work sheet to contact@stlucieappraisal.net
Wilson P (Massachusetts)- Sorry that I didn’t leave a prior review as I wanted to wait for the claim to be settled. Just as you predicted, the insurance company took its time and made a few low settlement offers. By following your advice, they have paid us $4,750.00 which is close enough to your $6K diminished value report amount to be acceptable. Much thanks for all of your time on the telephone and for your excellent report.
Alyssa W (Massachusetts) – Just following up with you on the report of my silver Honda CR-V against Safety Insurance. Today I got the settlement check for $2,000 – their original offer was $1,220 until I filed a complaint with the Insurance Division. So I wanted to thank you for the advice. And I don’t understand why Safety was making this process difficult. Thanks for everything.
Patty G (Massachusetts)- This company was fast, accurate and very easy to work with. They did everything they said they would, I was skeptical at first just sending money before getting my report, but all was above board. Thank you for your help.
Kenneth B (Massachusetts)- Frank was excellent to work with and prepared a thorough report of my highly optioned Porsche. Frank took the time to address the added value of the options with all the Porsche dealers he contacted which provided a truly accurate report. Should you find yourself is a situation where you need the assistance of a professional in compiling a well-grounded claim, I would highly recommend that you contact The St. Lucie Appraisal Company.
James K (Massachusetts)- Hi Frank, l want to take this opportunity to thank and happily inform you that finally l got the $5,000 check from Safety Insurance, l received it last night in the mail. Now l want to click to the link and write my review on your noble report and let other people know that your company is the real deal to seek help from!! Thank you again!
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