Comps Unavailable: Auto Insurance's Next Steps Explained

When an insurance company declares a car a total loss, it means that the cost of repairing the car exceeds its value. In this case, the insurance company will pay the owner the value of the car minus the deductible. However, the owner may not agree with the insurance company's valuation of the car, and this can lead to disputes. If the insurance company's valuation is disputed, the owner can take several steps, such as requesting an appraisal, filing a complaint, or seeking legal help. Comps, or comparables, refer to similar vehicles in the area that are for sale or have been recently sold, and are used to determine the value of a car. When auto insurance cannot find comps, it may be difficult to accurately determine the value of a car, which can impact the settlement offered to the owner.

Local comps refer to similar vehicles in your area that are for sale or have been sold recently

Local comps, or "comparables", are an important tool for determining the value of your vehicle. These comps refer to similar vehicles in your area that are currently for sale or have been recently sold. When negotiating a total loss settlement with your insurance company, having a good understanding of local comps can help you secure a fair payout.

• Make, model, and year: Look for vehicles that match your car's make, model, and year as closely as possible. The more similar the vehicles are, the more accurate your comparison will be.
• Mileage and condition: Consider the mileage and overall condition of the vehicles. A car with low mileage and in good condition will typically have a higher value than one with high mileage and significant wear and tear.
• Recent sales: Focus on vehicles that have been sold within the last 3 to 6 months. Market conditions can change quickly, so it's important to look at the most recent transactions to get an accurate sense of the current market value.
• Location: Compare vehicles sold in your local area. Prices can vary based on geographic location, even for the same make and model of the car.
• Features and upgrades: Take into account any additional features or upgrades that may impact the vehicle's value. For example, a sunroof, leather seats, or a premium sound system could increase the value.

To find local comps, you can utilise various online tools and resources:

• Use reputable online car listing websites to search for similar vehicles that are for sale or have been recently sold in your area.
• Visit used car websites, such as Auto Trader or Car Gurus, to find vehicles with similar features and mileage to yours.
• Contact local car dealerships and ask for their comps, as they may have access to recent sales data that can help you determine the value of your vehicle.
• Consider using a total loss vehicle value calculator, which can be found on websites like Kelley Blue Book or the National Automobile Dealers Association. These tools can help you compare your vehicle to local comps and estimate its value.

By gathering information on local comps, you can confidently negotiate with your insurance company and ensure you receive a fair settlement for your totalled car.

Comps include factors such as make, model, year, mileage, and condition

When it comes to auto insurance and total loss claims, "comps" or "comparables" refer to similar vehicles in your area that are either currently for sale or have been sold recently. These comparable vehicles are used to determine the value of your car and, consequently, the settlement amount you will receive. Comps include factors such as make, model, year, mileage, and condition, which help establish a fair market value for your vehicle.

The make and model of a vehicle play a crucial role in determining its value. Different automotive brands have varying reputations for reliability and longevity, which can impact their residual value. For example, certain brands like Honda and Toyota are known for their long-term reliability, while others might offer more advanced technology and safety features.

The year of a vehicle, also known as its model year or age, is another essential factor in comps. Generally, newer vehicles are considered more valuable than older ones, as they typically have less wear and tear. However, it's worth noting that some older cars with low mileage may still be desirable due to their overall condition and maintenance history.

Mileage is a critical metric in assessing the value and longevity of a vehicle. Higher mileage often equates to lower pricing and may indicate a shorter vehicle lifespan. While the definition of "good" mileage varies, it generally depends on factors such as the car's make, model, and maintenance history. For petrol cars, look for mileage under 12,000 miles per year, and for diesel vehicles, aim for approximately 10,000 miles per year.

The condition of a vehicle encompasses various factors, including its maintenance history, component wear and tear, driving conditions, and overall safety. Well-maintained cars with proper service records and fewer repairs are generally more valuable. Additionally, the type of driving conditions (e.g., city driving vs. highway driving) can impact the vehicle's condition and the amount of wear and tear on its components.

When determining comps for your vehicle, it's essential to consider these factors to find the most comparable vehicles in your area. By researching and providing detailed information about your car's make, model, year, mileage, and condition, you can ensure a more accurate valuation and, ultimately, a fair settlement offer from your insurance company.

You can use a totalled car value calculator to challenge your insurer's findings

When an insurance company declares your car a total loss, they will pay out the car's actual cash value (ACV), minus your deductible. This is the value of your car immediately before the accident occurred, taking into account depreciation, wear and tear, and any existing damage.

Insurance companies use their own databases to determine the value of your car, and this can sometimes be inaccurate or unfair. If you believe your insurer's valuation of your car is too low, you can challenge their findings and negotiate a better settlement. One way to do this is by using a totalled car value calculator.

A totalled car value calculator can help you determine the actual cash value of your car. You can use reputable websites to calculate your car's retail value (when selling to a private party) and the purchase dealer value. Sum these values and divide the total in half to get your car's ACV. It is recommended to repeat this process with a few different websites to get a range of values.

Once you have calculated your car's ACV, you can compare it to the insurance company's offer. If their offer seems too low, you can negotiate and submit a counteroffer. It is important to have supporting documentation for your counteroffer, such as receipts for aftermarket components and recent repair costs. You can also provide evidence of similar vehicles (or "comps") in your area that are for sale or have been recently sold to support your valuation.

In addition to challenging the valuation, there are a few other steps you can take to negotiate a better settlement:

• Emphasize the emotional toll of the accident and how it has impacted your life.
• Be prepared to push for a higher settlement, as dealing with insurance companies can be costly and time-consuming.
• Know your car's value before the accident, including any added accessories or upgrades.
• Have a counteroffer ready by researching the value of similar vehicles in your area.

By using a totalled car value calculator and following these steps, you can effectively challenge your insurer's findings and negotiate a fair settlement for your totalled car.

Insurance companies total cars when repair costs are more than the vehicle is worth

When an insured car is involved in an accident, the insurance company will decide whether to pay for repairing the car or to declare it a total loss and pay the owner its book value. Insurance companies "total" a car when the cost to repair the damage exceeds the vehicle's book value at the time of the crash. This is also known as the actual cash value (ACV) of the car. The ACV is calculated by factoring in depreciation, including wear and tear, mileage, and previous accidents.

Each US state sets its threshold for declaring vehicles a total loss, but insurance carriers may choose to use a lower threshold. Some insurance companies will total a vehicle if the damage is at or above 51% of its pre-accident value, while others will total it at 80%. This percentage is largely decided by state insurance regulators, so it can vary based on location. For example, the state threshold for totaling a car in Alabama is 75% or greater of its ACV. However, if the insurer's threshold is 60%, the vehicle will be totaled when repair costs reach 60% of the ACV.

If the insurer totals your car, they will pay you the vehicle's ACV, minus your deductible and any other fees. They will then send the car to a salvage yard to be auctioned off, and they will keep the money earned from the sale.

If you believe your vehicle is worth more than the insurer's offer, you can negotiate a total loss settlement by researching the make, model, mileage, and repair history of your vehicle to prepare a counteroffer. You can use tools like Kelley Blue Book or the National Automobile Dealers Association to determine the value of your car. It is important to note that you don't have to accept the insurer's first offer, and you can always negotiate for a higher settlement.

You can negotiate the car's value with the adjuster or hire an attorney to reach a settlement

When auto insurance cannot find comps, or comparables, you can negotiate the value of your car with the adjuster or hire an attorney to help you reach a settlement. Here are some steps to guide you through the process:

Understanding the Settlement Process

Before starting the settlement process, it's important to know what you're dealing with. Insurance companies are incentivized to pay out as little as possible and will often employ tactics to get you to accept a lower settlement offer. They may try to wear you down or take advantage of your situation, knowing that you might be out of work or dealing with the stress of a totaled car. It's crucial to recognize these tactics and not fall for them. Remember, you don't have to accept the first offer, and you have the right to negotiate for a fair settlement.

Determining the Value of Your Car

To effectively negotiate, you need to know the true value of your car. Get estimates from multiple sources, including your trusted mechanic, other mechanics, and websites like Kelley Blue Book or Edmunds. This research will help you understand the actual value of your vehicle and provide a basis for your counteroffer.

Negotiating with the Adjuster

If the adjuster's initial offer is significantly below your estimates, it's time to negotiate. Ask the adjuster to explain their justification for the offer, and then form your counterargument. Be prepared to share your research, documentation, and any other relevant information to support your case. It's essential to remain polite and firm during these discussions, knowing that going to court is not your first option.

Preparing a Counteroffer

To make a strong counteroffer, follow these steps:

• Determine the value of your claim: Calculate your special damages (out-of-pocket expenses) and general damages (non-monetary damages). You can use AllLaw's settlement calculator to estimate a reasonable value.
• Adjust the value of your claim: Depending on the circumstances, you may need to adjust the value upward or downward. Consider factors such as the severity of your injuries, your share of fault in the accident, and the risks of lengthy negotiations.
• Evaluate the adjuster's offer: Assess whether the offer is reasonable or absurdly low. If it's within a realistic range, try to understand the adjuster's valuation, especially where they differ from your calculations.
• Prepare your counteroffer: Draft a counteroffer letter that summarizes the adjuster's offer, explains why it's too low, and clearly states your revised settlement demand. Attach any supporting documentation you have to strengthen your case.

Hiring an Attorney

If you feel overwhelmed by the process or are unable to reach a fair settlement on your own, consider hiring an attorney. While this adds expense, it can be beneficial, especially if the case is complex or involves proving fault. An attorney can help you maximize the value of your claim, answer your questions, and take on the stress of negotiating with the adjuster.

Frequently asked questions