Insurance Adjuster Comparable Values: Myths and Reality

When you file an insurance claim, you might come across insurance adjusters who evaluate the value of your damaged or lost car. One common question that arises is whether adjusters use faraway comparable values and if this affects the value of your car. In this article, we will clarify these myths and discuss the real methods employed by insurance adjusters.

Understanding the Process

Insurance adjusters typically rely on appraisers to determine the value of your vehicle. Appraisers use a variety of methods to assess the value, but a significant portion of this process involves looking for comparable vehicles.

Appraisers aim to find vehicles that are as similar as possible to the one that has been damaged or is in the process of being determined. This includes factors such as the year, make, model, trim level, and mileage. However, there can be geographic limitations, especially for rare vehicles or those that are not commonly found in a specific area.

Why Geographical Limitations Matter

For common vehicles, appraisers can easily find comparable vehicles in the immediate area, such as a 3-year-old Honda Civic in Chicago. However, for rare or outdated vehicles, they may need to expand their search to a larger area. For instance, finding a 15-year-old Massaratti in Iowa may require looking beyond the local market.

The Importance of Accuracy

Insurance adjusters use specific guides like the National Automobile Dealers Association (NADA), Kelley Blue Book (KBB), and the Black Book. These guides provide accurate but dated values. By the time these guides are published, the data is already a few months old. This can sometimes lead to discrepancies between the guide values and the actual value of your vehicle.

How Consumers Can Negotiate

The best way to negotiate a fair value is to provide evidence of comparable vehicles that are available online. Look for cars that are nearly identical in terms of year, make, model, and sub-model. Do not choose a newer model or higher trim level unless it matches your car's specifications. Ensure that the mileage is as close as possible.

Once you have found two or three nearly identical cars that are priced higher than what the adjuster has offered, include detailed URLs and other relevant information in your negotiation. This can help you get a higher offer.

Hidden Charges and Other Fees

Don't forget to account for hidden charges such as sales tax, transfer fees, and license plate costs. Sometimes, these additional fees are overlooked, and you could end up paying a higher cost than necessary.

Conclusion

Insurance adjusters use regional and specialized guides to determine the value of your vehicle. While these guides are valuable, they may not always reflect the current market value. As a consumer, you can play an active role in the negotiation process by providing evidence of comparable vehicles. By doing so, you can ensure that you receive a fair and accurate valuation for your vehicle.