| So the insurance adjuster has told you that your | | | | best argument against a report from CCC or ADP is |
| vehicle is a total loss, huh? How much are they going | | | | to review the "comparable" vehicles and point out |
| to pay you? As a licensed insurance adjuster and the | | | | where and why the comparable vehicles aren't |
| owner of a company that certifies vehicle values, I | | | | actually comparable. |
| should be able to shed some light on this subject for | | | | National Publications |
| you. Let's get right to it: | | | | The national publications that can be used include |
| 1. Private vehicle vs retail vehicle: In most States, the | | | | NADA, Edmunds, and Kelley Blue Book. There are |
| value assigned to your private vehicle by an insurance | | | | more, but these are the main publications that are |
| company is called the "Actual Cash Value". | | | | generally used. If you run the same vehicle with each |
| The actual cash value of your vehicle is generally | | | | one, you will come up with different figures. My |
| defined as the value a private purchaser would pay | | | | suggestion is to average the three and use that |
| for a similar vehicle, if the purchaser is under no | | | | value because then your value is supported by all |
| pressure to purchase, and the seller is under no | | | | three publications. |
| pressure to sell. Even adjusters get confused about | | | | Real Data |
| this subject. A retail vehicle price is different than a | | | | The real data one can use consists of online vehicle |
| private vehicle price because of the factors | | | | auction sites or actual sales receipts from individuals. |
| incorporated into it. The retail price will always be | | | | AutoTrader.com, and will allow you to search for |
| greater than the actual cash value. Dealers have to | | | | comparable vehicles in your area. The easiest way to |
| advertise, make a profit, pay sales people, inspect | | | | use these sources is to do an advanced search and |
| vehicles for safety concerns, and they have to | | | | make sure you average only the really comparable |
| maintain a staff that can assist purchasers with | | | | ones. It can get complicated, but it's normally worth |
| obtaining credit and filling out paperwork. All of these | | | | the effort. |
| costs are incorporated into a vehicle's sales price | | | | 3. Negotiation skills! |
| when it is sitting on a dealers lot. Your vehicle is not a | | | | Once you have researched the value of your vehicle |
| retail vehicle, and will not command the same price as | | | | using national publications and real data, and picked |
| a vehicle that is sitting on a dealer's lot ready to sell. | | | | apart any market evaluation done by a computer, |
| The law normally does not require the insurance | | | | then you should be ready to negotiate by using the |
| company to pay you for the retail value of your | | | | average price you have calculated using the data you |
| vehicle (if you're not sure, call us and we will tell you | | | | have. Be willing to accept a little less than you have |
| where to find your State's information for free). | | | | calculated, but be professional and persistent in your |
| 2. Methods of calculation: Market reports, national | | | | negotiation. Always negotiate in writing. Send a |
| publications, real data. | | | | demand letter to the insurance adjuster asking for a |
| Market Reports | | | | specific amount (the amount you calculated), and |
| Many insurance companies use a third party vendor | | | | give them a time limit to respond to you. After you |
| to provide reports that reflect a vehicle's market | | | | have sent the demand, follow up by telephone every |
| value. The most prominent ones are CCC | | | | couple of days. If the insurance adjuster or carrier |
| (Valuescope), and ADP Autosource. These reports | | | | refuses to negotiate, then you must either work |
| generally do not depict actual sales data, rather they | | | | your way up the chain of command, or begin doing |
| depict asking prices (one can ask whatever they | | | | your research for filing a small claims suit in your |
| want, but the sale price is what is important). | | | | State. Proper negotiation and a willingness to accept |
| Additionally, the vehicle specifications reflected in | | | | a little less than you consider to be fair will keep you |
| these reports totally rely on human input, and if the | | | | from spending extra money filing suit and arguing |
| adjuster / report requestor doesn't enter correct | | | | your case in front of a judge or jury. If you can get |
| information, or if they enter nothing at all, then | | | | to within $800 of the average price calculated using |
| default values are generated, and the final report | | | | publications and real data, I would suggest you settle |
| value will not be reflective of the actual vehicle that | | | | and move on with your life! |
| is being evaluated. Watch these reports for | | | | Good luck with your total loss negotiation. You can |
| inaccuracies. If everything is entered correctly, the | | | | do it! Sometimes it's just in the petty details! |