TTL Valuation Inquiry – Can I Contest the Mileage Adjustment?
After my car 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. I would greatly appreciate any feedback or advice on how to proceed. Specifically, I’m questioning the mileage adjustment rate and an outlier in the comparable vehicles. For context, the other party was at fault, and my insurance company is handling the claim, with plans to seek reimbursement from the at-fault driver’s insurer. My previous vehicle was a 2014 Nissan Sentra.
Mileage Adjustment
Upon reviewing the calculations, I noticed that the mileage adjustment rate is approximately $0.02 per mile. My vehicle had 88,000 miles, while the comparable vehicles range from 93,000 to 129,000 miles. One comparison had 41,000 more miles than mine but was only adjusted by $820, which seems unreasonable to me. What is the typical industry standard for mileage adjustment? I believe a rate of at least $0.05 per mile would be more equitable.
Outlier in Comparables
Additionally, one of the comp vehicles has a starting price that appears to skew my vehicle’s valuation downward. The comparable values are $6,175, $6,899, $6,995, and $6,999, with a notable outlier at $5,300 listed by a private seller. I also discovered another vehicle that is 72 miles away (the initial search was for 50 miles) valued at $6,000. Would it be possible to substitute one of these vehicles for another in the valuation process?
Thank you for your assistance!
It sounds like you’re navigating a challenging situation with the total loss valuation of your car. Here’s how you might approach addressing both the mileage adjustment and the outlier in comps:
Mileage Adjustment
Research Industry Standards: You’re right to question the $0.02 per mile adjustment. While rates can vary, many experts suggest adjustments around $0.05 to $0.10 per mile depending on factors like vehicle make, model, and overall demand. It may be helpful to gather data supporting your position, such as industry articles or guides that discuss mileage adjustments.
Prepare Your Argument: When you reach out to your insurance company, clearly explain your calculations and reasoning. Present the comparison between your vehicle and the comps you’ve identified, emphasizing how the mileage difference significantly affects market value. If possible, find similar vehicles with lower mileage that were valued higher, reinforcing your point.
Request a Reevaluation: Politely request a reevaluation based on your findings. It’s also beneficial to ask for clarity on how they reached their specific mileage adjustment. Insurers sometimes have set formulas, but they may be willing to negotiate if you present factual evidence.
Outlier in Comps
Point Out the Outlier: In your communication with the insurance adjuster, highlight the outlier and explain how it negatively impacts the overall valuation. You can illustrate that using one significantly lower-priced vehicle is not reflective of the market value for similar cars.
Introduce Better Comparisons: The fact that you found a comparable vehicle for $6000 is excellent leverage. Point out that this vehicle is closer in both price and distance, and request that it be considered as a valid comp instead of the outlier.
Comparative Market Analysis: It can be helpful to provide a clear breakdown of the average of the other comps, excluding the outlier, to demonstrate what a more accurate valuation would be.
Final Steps
Formal Appeal Process: If the adjuster is unwilling to reevaluate your concerns, ask about the formal appeal process. Document everything and keep records of your communication.
Consider Expert Opinions: If needed, you might also consider getting an appraisal from an independent source, which can serve as further evidence to support your case.
Navigating total loss valuations can be frustrating, but clear communication backed by research can significantly enhance your chances of a favorable resolution. Good luck!