Disappointed with Tesla Insurance’s Total Loss Offer for Our 2024 Model Y
Hi everyone,
I’m reaching out because our 2024 Tesla Model Y Long Range was recently declared totaled by Tesla Insurance, and they have provided a valuation of just $39,451, which I believe is unfair. We purchased the car in mid-August 2024 and had only driven it 1,316 miles before a crash occurred on December 3, 2024. As we were at fault (with no other party involved), we filed a claim through Tesla Insurance.
We live in Fairfax, VA, yet the valuation report references a similar Tesla located in Apopka, FL, nearly 1,000 miles away. For context, the list price for the Apopka vehicle was $40,900, and it had 3,904 miles on it.
Additionally, the report rates the condition of our vehicle as ‘Good/Well Maintained’ in various categories. I’m not sure what scale Audatex (the third-party company that provided the valuation) uses, but our car was meticulously cared for and should be classified as ‘Excellent.’
I would appreciate any advice on how to contest this valuation.
Thank you!
Valuation Report Summary:
Vehicle Condition Ratings:
- Seats: Good
- Carpets: Good
- Interior Trim: Good
- Glass: Good
- Headliner: Good
- Body: Good
- Paint: Good
- Exterior Trim: Good
- Engine: Well Maintained
- Transmission: Well Maintained
- Front Tires: Good
- Rear Tires: Good
Valuation Breakdown:
- Comparable Vehicle Price (Apopka, FL): $38,501
- Odometer Adjustments: $270
- Tow Hitch Package: $680
- TOTAL VALUATION: $39,451
Adjustment Notes:
- An odometer adjustment of $0.1050 per mile has been applied based on vehicle year, category, and market area, capped at 40% of the vehicle’s starting value.
- The average mileage for a 2024 Tesla Model Y in Virginia is listed as 20,999 miles.
- No special adjustments were made for our vehicle.
- All figures are in U.S. dollars.
I’m sorry to hear about your situation — getting a fair value for your totaled car can be really frustrating, especially when you feel that the appraisal doesn’t reflect its true condition or market value. Here are some steps you can take to dispute the valuation and seek a better offer from Tesla Insurance:
Gather Evidence of Condition: Compile any documentation that demonstrates the excellent condition of your Model Y, such as photos showing the exterior and interior, service records, and any maintenance receipts. Having this evidence can make a strong case for a higher valuation.
Market Research: Look for comparable Tesla Model Y vehicles for sale in your area (Fairfax, VA) with similar mileage and condition. Websites like CarGurus, Autotrader, or even Tesla’s own marketplace can help you find relevant listings. Document these listings to show that similar vehicles are priced higher than the valuation given by Tesla Insurance.
Review the Valuation Report: Take a closer look at the valuation report and assess if the Adjustments of Special Note are justified. If you feel the odometer adjustment is unfair, or if the comparable vehicle from Apopka, FL is not an accurate representation of your car’s value in your local market, make a note of those discrepancies.
Prepare a Formal Dispute: Write a formal letter to Tesla Insurance outlining your concerns about the valuation. Include your evidence, such as the condition documentation and local market comparisons. Be clear and concise in your communication, focusing on why you believe the valuation is low.
Request a Re-evaluation: In your dispute letter, request a re-evaluation and provide specific figures based on your research. Ask them to reconsider the comparable vehicles used and emphasize your vehicle’s excellent condition.
Consult with an Appraiser: If possible, consider hiring an independent vehicle appraiser who can give you an unbiased assessment of your car’s value. Their professional opinion could carry weight in negotiations.
Contact Your Auto Insurance Representative: Since Tesla Insurance is your auto insurer, reach out to your representative to discuss your case. They might be able to advocate on your behalf or provide you with more clarity about the valuation process.
Escalate if Necessary: If you still feel unsatisfied with the response, ask to speak with a supervisor or higher-level claims representative. Sometimes, a more senior individual can have more leeway in negotiations.
Consider Legal Advice: Lastly, if you’ve tried everything and still believe you are being treated unfairly, you may want to consult with a legal professional who specializes in insurance disputes.
It’s important to stay organized and persistent throughout this process. Best of luck, and I hope you can reach a fair resolution!