Auto Total Loss

Part II

When there is an Auto Total loss most insurance companies use �independent� companies like CCC Information Services Group, Inc. and ADP/Auto Source.

The word in independent is under quotations because the evaluations these companies provide are targeted to please their clients. That would be the insurance companies, not the ultimate consumer.

CCC Information Services Group clearly owns a monopoly in the industry. Their main list of clients includes more than 350 insurance companies, which includes the more influential 50.

My point, third party independent evaluations are not really independent. For more documentation regarding CCC and their evaluation practices read Mr. Stephen C. Ryan's, attorney at law, article: Salvaging The Total Loss Claim. This short article will shed some light in what the insurance company is trying to do!

The insurance adjuster will collect all the data necessary for CCC and the like companies. She/he will take the odometer reading, the condition of paint, condition of the car (the adjuster will rate it as "below average," "average," "above average," and "excellent�), make, model, options , etc.

The factual data is objective (odometer, year, make, and model), but the condition is very subjective. If your car was dirty the day of the accident, then the Auto Total Loss adjuster could rate it �average�.

In most of the claims that I handled, almost every Auto Total Loss was rated below average (about 90%). This has a significant impact in the final value of your car. This is about the only portion of the total loss process that the insurance can modify.

Once the data is submitted, then CCC will evaluate the
market value of your vehicle. CCC will use mainly information from dealerships regarding the vehicles they have in their lots. They will also use newspaper ads and other local magazines. As noted before, they will not use NADA or Blue Book values because these are national directories, not local.

This data is given back to an Auto Total Loss Adjuster (sometimes this is the liability adjuster, sometimes this is only an adjuster that deals with Total Losses only, and sometimes this is the Field Representative or the person that actually wrote the repair estimate). The adjuster will not have much discretion to adjust these values. When I was adjusting claims, I had less than $200 of discretion to settle the Auto total loss claim!

So how can you dispute a low value? How can you document your file so you get paid what your vehicle is worth?

This will be another long process where you will have to do a lot more work than you really should.

First get all the estimate and the evaluation and �comps� that CCC provided to the insurance company. Once you get the comps. They should list phone numbers and the location that those vehicles are located at. Look to see if they are indeed similar to yours in year, make, model and similar mileage. If they are, then look for other options like, 4x4, CD player, condition, power options, sunroof etc.

Use the comps that help your case and dispute the ones that make the value low. If the comp is found more than 30 miles away from where you live, you must object and tell the adjuster that the comps must be within 30 miles or less (you could allow up to 50). So drop everything that is not in your local market!

You also need to DRIVE (do not call) to these dealerships and see the vehicles that they are comparing to yours. You will be surprise that many of these vehicles do not exist. I think CCC call random dealers and they tell them that if they would have a vehicle on the same condition as yours, they will sell it at this price. I am not sure about this, but I have a strong suspicion that if you actually go to these dealers, either the cars do not exist, or they are nothing to compare to yours.

This of course puts a lot of work on your part. But again, you are trying to value your vehicle for more than they are offering. This could finally get you compensated to where you were before the accident.

If this technique does not help you, keep an eye in the paper for vehicles that are similar to yours. Send copies of this comps to your adjuster and show them that their value is too low. Auto total loss adjuster will have to take into account any newspaper ad that you can provide as long as it is for your local market.

For more Total Loss information and negotiation strategy, check out this eBook.

Also provide all maintenance records of your car. From oil changes, to tires, batteries, and whatever else you have invested in your vehicle. They will not add much value to the total loss as Insurance does not give you dollar per dollar, they will depreciate your loss items, but this way you can get some more money for your loss.

If all of the above fails, then it is time to pull you policy out and read your right of appraisal clause. This clause will make the insurance adjuster hire an independent appraiser to come out and evaluate your vehicle.

Insurance companies do not like to see this because they have to pay for this appraiser, unless you want to choose the appraiser. It cost them anywhere from $300 to $500 for just an appraisal, and if you request a rush appraisal, it can cost even more.

If you are in an Auto Total Loss, then be ready to fight! Do not let those bandits take advantage of you!

Read: AUTO TOTAL LOSS PART 1

If you have an Auto Total Loss, you could be entitled to rental coverage. Learn more

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