Think your insurer's offer is too low? Here is how the valuation works, what to check, and what your options are.
Many insurers value a totaled vehicle with valuation software. It finds comparable vehicles for sale nearby and adjusts for the differences. That is a reasonable method, but the result depends on which vehicles were picked and how they were adjusted. The problems we see most often are:
If you have not received the valuation report, ask for it in writing. Then go through it line by line:
Rules differ by state. In California, for example, the total loss regulation (Title 10, California Code of Regulations, section 2695.8) says the cash settlement must be based on the cost of a comparable vehicle: same make and model type, the same or a newer model year, a similar body type, and similar options and mileage. It must have been available for retail purchase in the local market within 90 days of the final offer. Differences must be adjusted for in itemized, documented dollar amounts. The settlement must also include applicable sales tax and one-time transfer fees, plus license and other annual fees for the remaining registration term, and the insurer must itemize and explain its valuation in writing when it makes the offer. Rules can change, so confirm the current text for your state.
The stronger your documentation, the harder it is to dismiss. Pull together:
California has a specific safeguard for policyholders. If you tell your insurer within 35 days of the payment or final offer that you cannot buy a comparable vehicle for the amount offered, a first-party claim must be reopened, and the insurer must find you a comparable at that price, offer a replacement, pay the difference, or invoke the policy's appraisal provision. (There is an exception if the final offer already identified, in writing, a specific comparable vehicle available at that price.) Check the deadline in your own letter, and do not wait.
An independent appraisal gives you the evidence for each step above: documented comparable sales, itemized adjustments for your vehicle's trim, options, condition and mileage, and a clear explanation of how the value was reached. It supports a request for revision, it can be presented in an appraisal clause process, and it gives a regulator a clear file to review.
It does not force an insurer to pay a particular amount, and no one can promise an outcome. Our fee is the same flat price whatever value we conclude, which is part of why the report holds up. Aprazio reports follow USPAP methodology.
A Total Loss Dispute appraisal starts at $595 as a Virtual Appraisal. You see the exact flat price before you pay, with no deposit and no quote request. Luxury and higher-value vehicles are priced a level up. A claim-ready packet is an optional +$95, and an insurer rebuttal letter ($195) can be added after delivery. The report is delivered within 72 hours (business days) of receiving your complete details.
Because the vehicle has been damaged, we work from your photos taken before the loss and your records. Have these ready:
It depends on your policy, your state and what you signed. If you have not cashed the payment or signed a release, ask the insurer in writing whether accepting closes the claim before you do. If you already have, talk to an attorney about your options. Do not assume it is too late.
It varies by state and policy, so check the deadlines in your letter and your policy. In California, for example, a first-party insured has 35 days from the payment or final offer to say they cannot replace the vehicle for the amount offered. Act as soon as you can.
Usually each side pays for its own appraiser and shares the cost of the umpire. Your policy sets the terms, so read it before you invoke the clause.
No. An independent appraisal is evidence. Insurers are not bound by it outside the policy's appraisal process, but a documented report gives you a much stronger basis for asking for a revision, using the appraisal clause or filing a complaint.
Compare the likely gap to the cost. If the difference between the offer and the real market value is a few hundred dollars, the appraisal may not pay for itself. If it is thousands, it often does.
That is a different question: the car may have lost value because of the accident history. See our diminished value appraisal.
This guide is general information, not legal or insurance advice. Aprazio is not a law firm or an insurance adjuster, and rules and deadlines vary by state and by policy. Check your own policy and your state's rules, and speak with an attorney if you need legal advice.
Agreed vs stated vs actual cash value · What is diminished value? · Will insurers and courts accept an online appraisal? · How much does a car appraisal cost?