How do auto insurance adjusters determine the value of a totalled auto ?
Question:
Answer:
Most auto insurance policies pay the actual cash value (ACV) of a vehicle totaled in an accident. The ACV is equal to the market value of an auto immediately before the accident.
Many insurers use the Kelly Blue Book. To check your cars value go to www.kbb.com.
Insurers must use a fair and reasonable method to determine the value of your car. If you have concerns about their decision you may be able to negotiate with your insurer by telling them why your car may have had more value that what the insurance company originally determined.
Ron @ InsureMe http://www.insureme.com/landing.aspx?ref...
they use the blue book to determine street retail value, they then estimate the amount of money (labor) to return the car to it's pre-accident state.
Um, no, they don't use Kelly Blue Book-- that is a dealer pricing tool. In other words, "sticker" price. (Read the disclaimer!) Does anyone actually pay sticker?! No, unless they have money to burn!
They use actual cash value-- this can be determined with the help of NADA regional editions, or with market search tools. The mileage and condition of the vehicle "pre-loss" matter a great deal.
I don't know what they use but when my car got totalled (not my fault) I basically got close to the retail amount listed in the Kelly Blue Book. I had a 14 year old car and I got about $1300. Maybe I was just lucky.
The 'value' of anything is only what the buying public will pay for it. Insurers use NADA, Kelly, ADP, etc as a guide. Often they do market research, (check local listings for similar vehicles) and check used car lots. This combined with options, condition and mileage will add or subtract from the bottom line value. Many times I deal with people that have made heavy modifications to cars such as body kits, suspensions modifications, custom paint, etc. They are floored when I inform them they have NOT increased the value of their car, rather, they have effectively narrowed the market for their car by doing this and usually the value is lowered.
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