When you own a vehicle, and it is involved in a devastating accident, the situation can be extremely stressful and confusing at the same time. Even if you keep your cool and file an auto insurance claim immediately, what if the insurance adjuster deems your car a total loss? No answer? You are not alone.
There are several car owners who don’t know what to do when their car is totaled. A total loss appraisal can help in this situation. Unfortunately, even fewer people know about this appraisal than those who are aware of total loss. We are here with an insightful guide explaining everything about a total loss appraisal.
Total Loss Appraisal Explained
A total loss appraisal is an insurance evaluation used to determine if a vehicle is too damaged to repair economically and to establish its final payout value. This process is triggered when the estimated repair cost meets or exceeds a specific threshold. This threshold varies depending on the state laws and is generally 75% to 80% of the car’s market value. The appraisal involves comparing the estimated cost of repairs and the vehicle’s ACV (actual cash value).
When Do You Need a Total Loss Appraisal?
If your car is totaled after an accident, you need a total loss appraisal in the following scenarios.
Low Settlement Offer
If the insurance company’s valuation is significantly lower than your car’s local market value.
Undervalued Condition
In case your car is in superior condition, like low mileage, new tires, and an immaculate interior, and the insurer didn’t account for it.
Customization/Upgrades
If your car has custom modifications or classic or antique status that standard valuation tools miss.
Dispute Value
You have documented proof that similar vehicles in your area are selling at a higher value than the insurer has offered.
Unfair Appraisal Method
The insurer uses specialized software like CCC, Mitchell, or Audatex that undervalues cars.
Benefits of a Total Loss Appraisal
If you have your totaled car appraised, you can enjoy these benefits.
- Appraisals often result in a more accurate, higher, and fair compensation for the vehicle.
- You receive a detailed, unbiased, and objective valuation report for your damaged ride.
- A professional, documented appraisal provides concrete evidence to dispute low offers and strengthens your position in negotiations.
- A professional appraisal helps speed up the settlement process so you can receive your claim payment sooner.
Common Pitfalls to Avoid
- You should never accept the first offer from your insurance adjuster, as they often undervalue your vehicle.
- Don’t forget fees; ensure taxes, registration, and title transfer fees are included in your insurance claim settlement payout.
- Don’t ignore it if the insurer tries to reduce the payout by claiming pre-accident repairs increased the car’s value.
We are ADR-Claims, a team of skilled and experienced appraisers. If your car is involved in an accident and your insurance adjuster has deemed it a total loss, let us help you. We will determine your car’s accurate value with a sophisticated total loss appraisal. Contact us right away for help.
