TTL Valuation Concerns – Is it Possible to Question the Mileage Adjustment?
My vehicle was totaled in an accident, and I’ve received the total loss offer along with the valuation report. I have a few concerns I’d like to address, particularly regarding the mileage adjustment and one outlier in the comparable vehicles. Just to provide context, the other party was at fault, and my insurance will cover the costs before seeking reimbursement from the at-fault driver’s insurance. My previous vehicle was a 2014 Nissan Sentra.
Mileage Adjustment
After doing some calculations, I’ve determined that the mileage adjustment rate is around $0.02 per mile. My car had 88,000 miles, while the comparable vehicles have mileages of 93,000, 116,000, 124,000, 126,000, and 129,000. I want to contest this valuation because one of the comps with 41,000 more miles was only adjusted by $820, which seems unreasonable to me. What is the industry standard for mileage adjustments? I believe a rate of at least $0.05 per mile would be more appropriate.
Outlier in Comparable Vehicles
There’s a significant outlier in the comps that appears to be negatively affecting my vehicle’s valuation. The comparable cars are priced at $6175, $6899, $6995, and $6999, but then there’s the outlier priced at just $5300, listed by a private seller. I also found another vehicle 72 miles away (originally limited to a 50-mile search) valued at $6000. Is it possible to replace the outlier with this higher-value vehicle?
I appreciate any insights you can provide on this matter. Thank you!
It sounds like you’re in a tough spot, and it’s understandable to want to ensure you receive a fair valuation for your vehicle after such a significant loss. Here are some thoughts on how to approach your concerns:
Mileage Adjustment
Industry Standards: The mileage adjustment for cars can vary, but your calculations suggest a significant discrepancy. While $0.02 per mile is common in some valuations, it tends to be on the lower side. Many industry standards cite adjustments closer to $0.05 per mile, especially for higher mileage vehicles. If you can provide examples from reputable sources or comparable sales that support your position, it could strengthen your case.
Documentation: Gather any documentation you have that shows similar vehicles and their mileage adjustments. Highlight how the mileage on your vehicle compares to those of the comps. This data could help prove that the adjustment applied in your valuation is, indeed, unusually low.
Outlier in Comps
Comp Listings: It’s reasonable to challenge the inclusion of the outlier in the valuation report. Generally, comps should be similar in condition, mileage, and pricing. If the outlier is significantly skewing your vehicle’s valuation, you can argue that its inclusion is not reflective of the market.
Offering Alternatives: Since you found another comparable vehicle valued higher (at $6000 and closer to the original specs), it’s worth presenting this option to your insurance company. Emphasize that this vehicle offers a more accurate comparison and potentially aligns better with the value of your own vehicle.
General Approach
Communicate Clearly: Prepare a concise but comprehensive message outlining your concerns about both the mileage adjustment and the comp valuation. Include concrete numbers and comparisons to support your points.
Be Persistent: Insurance companies often have set procedures, so being persistent yet polite is key. If you feel you’re not being heard, don’t hesitate to escalate your case to a supervisor.
Consult a Valuation Expert: If the situation doesn’t resolve in your favor, it may be beneficial to consult with a vehicle appraisal expert who can provide an unbiased valuation of your vehicle. Their opinion could lend further weight to your argument.
File a Dispute: If all else fails, ask your insurance company about the process of filing a formal dispute regarding the valuation. Knowing your rights can be empowering in negotiations.
Good luck, and hopefully, your valuation gets adjusted to reflect a fair amount!