TTL Valuation Concerns: Can I Challenge the Mileage Adjustment?
My vehicle was deemed a total loss following an accident. I’ve received the total loss offer and valuation report, but I have some concerns I’d like to address. Specifically, I have questions about the mileage adjustment rate and a concerning outlier among the comparable vehicles. Just to provide context, the other party is at fault, and my insurance company will cover the costs, later seeking reimbursement from the at-fault driver’s insurance. My car was a 2014 Nissan Sentra.
Mileage Adjustment
After reviewing the details, I noticed the mileage adjustment rate is about $0.02 per mile. My vehicle had 88,000 miles, while the comparable vehicles have 93,000, 116,000, 124,000, 126,000, and 129,000 miles. I believe this valuation is not fair; one comparable vehicle with 41,000 more miles than mine only had an adjustment of $820. What is the standard rate for mileage adjustments in the industry? I feel that an adjustment of at least $0.05 per mile would be more equitable.
Outlier in Comparables
Additionally, there is one vehicle priced significantly lower, which seems to be an anomaly and is negatively affecting my vehicle’s valuation. The values for the comparable vehicles are $6,175, $6,899, $6,995, $6,999, and then the unusual low price of $5,300 from a private seller. I found another comparable vehicle that’s 72 miles away (the original search was limited to 50 miles) with a value of $6,000. Is it possible to substitute one for the other in the valuation?
I appreciate any guidance and feedback you can provide. Thank you!
It sounds like you’re navigating a complex situation after your car was totaled. Here are some suggestions for addressing your concerns regarding the mileage adjustment and the outlier in the comps:
1. Mileage Adjustment Rate:
When it comes to mileage adjustments, rates can vary by insurance company and the valuation method they use. However, a common range is typically around $0.10 to $0.20 per mile, depending on the vehicle’s age, condition, and market demand. Since you’ve calculated around $0.02 per mile for your 88k miles, it does seem low—especially in comparison to the higher mileage vehicles you’re mentioning.
To challenge this, gather data from several reputable sources. You can look at online valuation tools like Kelley Blue Book (KBB) or Edmunds to obtain their assessments of similar vehicles with comparable mileage. Collect this information to support your claim for a higher mileage adjustment. You might also research regional market trends if your area has a notably different value for such vehicles.
2. Outlier in Comps:
Regarding the outlier in the comps, you have a valid point. Outliers can skew valuation and often need to be excluded to provide a more accurate and fair market assessment. Check the condition, location, and specific features of the lower-priced comp to see why it’s priced that way. If it’s a private sale, there could be reasons (like urgent need to sell) that affect its pricing.
You can bring up the vehicle that’s further away at $6000 as a more suitable comp. When presenting these arguments, aim to create a narrative around the typical market standards and why your valuation should reflect the averages of the other comps without including the outlier.
3. Next Steps:
Remember to document all your communications and keep copies of all correspondence regarding your claim. This documentation can be helpful if there’s any dispute down the line. Good luck!