Questions on TTL Valuation – Can I Contest the Mileage Adjustment?
My car was deemed a total loss after an accident, and I’ve received the total loss offer along with the valuation report for my vehicle. I have a couple of concerns that I’d love some advice on, particularly regarding the mileage adjustment rate and an outlier in the comparable vehicle listings. Just to clarify, the other driver was at fault, and my insurance will cover the costs while seeking reimbursement from the at-fault driver’s insurer. My vehicle was a 2014 Nissan Sentra.
Mileage Adjustment Concerns
After doing some quick calculations, I noticed that the mileage adjustment is approximately $0.02 per mile. My car had 88,000 miles, while the comparable vehicles had 93,000, 116,000, 124,000, 126,000, and 129,000 miles. I believe the valuation is unfair, particularly since one comparable with 41,000 more miles than my car was adjusted by only $820, which seems unreasonable to me. What is the standard industry rate for mileage adjustments? I think a rate of at least $0.05 per mile would be more appropriate.
Outlier in Comparable Listings
Additionally, there’s one comp vehicle listed much lower than the others, at $5300, which I believe is skewing my valuation downward. The other comparable vehicles are priced at $6175, $6899, $6995, and $6999. I also found a vehicle priced at $6000 that is 72 miles away, compared to the original 50-mile search radius. Is it possible to replace that outlier with this more comparable vehicle?
I appreciate any guidance you can provide. Thank you!
It sounds like you’re facing a frustrating situation with the valuation of your totaled vehicle. Here are some steps and considerations that may help you challenge the mileage adjustment and the outlier in the comps:
Mileage Adjustment
Research Industry Standards: As you’ve already calculated, $0.02 per mile seems low compared to the $0.05 per mile you’ve suggested. It’s a good idea to gather some data from reputable sources or industry guides that outline average mileage adjustments used in vehicle valuations. You can also refer to resources like Kelley Blue Book or Edmunds for further comparison.
Calculate Total Adjustment: If your vehicle had 88k miles and you’re using your preferred rate of $0.05, that’s a $4,400 adjustment (88,000 miles x $0.05). Compare that total to what the insurance is offering and clearly outline the difference when you present your case.
Present Your Case: When you contact your insurance adjuster, be sure to present your findings and stick to factual evidence. Highlight that a higher adjustment rate is justified based on the market standards and the comps you’ve analyzed.
Outlier in Comps
Argue for Relevant Comparables: You make a valid point about the outlier skewing the valuation. When challenging the comps, stress that the outlier ($5300) isn’t a fair representation of the market value given the significant differences in condition, mileage, and possibly other factors.
Swap for a Better Comparable: It’s entirely reasonable to request that your insurer consider a more relevant vehicle than the outlier. Present the vehicle worth $6000 that you found. When doing this, point out its closer similarity to your Nissan Sentra in terms of condition, mileage, and location.
Request a Re-evaluation: Ask for a formal re-evaluation based on the stronger comps and the adjustment rate you’ve calculated. Be sure to have all documentation organized, including links to relevant listings or printouts.
Communication
Document Everything: Keep a record of all communications with your insurance company. Document dates, points discussed, and any agreements made.
Stay Professional and Persistent: Keep your tone professional and polite. A respectful approach often yields better results. If you hit a wall, consider asking for a supervisor or a second opinion.
Final Considerations
If the situation does not resolve satisfactorily, you might consider consulting with a legal professional knowledgeable in insurance matters, particularly if the amount in dispute is significant.
Best of luck in getting a fair valuation for your totaled vehicle!