Total Loss Appraisals/Fair Market Value

Unsatisfied with your insurance company's offer on your loss? There may be a difference between what your insurance company is willing to pay you, and the fair market value of your vehicle! You're entitled to a fair settlement.

You are ALWAYS entitled to your own independent appraisal when negotiating a settlement with your insurance company. Often, insurance companies use automated systems that don't apply all the factors that an independent appraiser will consider in determining your wrecked car's value. If you've been offered a settlement you feel is unfair, go to our free quote on appraisal page.

"Without an Appraisal, could you prove the actual value of your car in the event something would happen to it?" - Auto Week Magazine

Fair Market Appraisals

A fair market value appraisal is an opinion of your vehicle's worth based on the appraiser's training, experience, and current market trends. Many insurance companies request an independent fair market value appraisal if there is a difference in opinion regarding your vehicle's worth, and if you assert the insurance policy's appraisal clause.

Appraisals for Insurance Purposes

With a current, detailed, value appraisal on your vehicle you have an excellent chance of getting what your vehicle is really worth if anything ever happened to it. In general, appraisals are only good for 2-3 years due to vehicles becoming more rare, upgrades, and market trends. If you are restoring a vehicle it is wise to have a preliminary value appraisal completed during the process in the event of an accident or act of nature. Then, when the restoration is complete we will update the value for a nominal fee. We keep all our appraisals and digital pictures on file so we can update the appraisal in a timely manner.

Lawsuits allege popular valuation method lowball the insured.

According to documents submitted in the discovery process for the case Buratovich vs. Farmers Insurance Exchange and Farmers Insurance Co. of Arizona and CCC Information Services Inc, Farmers' chose to use CCC Information Services' valuations solely because they resulted in the lowest payout for total loss claims.
Several other recent cases in state courts have brought scrutiny on the method insurance companies use to find the actual cash value of vehicles that have been totaled.

The Farmers' documents show Farmers chose to use CCC after a trial program which culled values from the National Automotive Dealership guide, local newspapers, and local dealerships increased their collision total loss costs by 31.8 percent.
Insurance companies use a variety of methods to arrive at the value of a totaled vehicle. All utilize some method of sampling the values of similar vehicles. The sources of these valuations range from the price of similar models at local dealerships, prices in the Kelly Blue book, NADA guide, local newspapers and classifieds.

Part of CCC's method involves sending Field Inventory Representatives to car dealerships nationwide and obtaining not the asking price, but the lowest possible price that the dealer would "take" for the vehicle. Consumers whose settlements are based on a valuation method based on the "take" price could find a sizable gap between what they receive for a totaled vehicle and what they need to replace it.