Has insurance changed?
I’ve only dealt with insurance companies a handful of times, and never because of anything I did.
Typically, when there’s a total loss, they assess the Actual Cash Value (ACV) and make an offer. I usually find comparable sales to justify the ACV in my area.
However, in my last two experiences, insurance companies seemed to lowball me using CCCONE and wouldn’t budge on negotiations.
What’s going on?
It sounds like you’re encountering some of the common frustrations with insurance claims, especially related to total loss evaluations. Insurance companies often use automated tools like CCCONE to assess the Actual Cash Value (ACV) of a vehicle, which can sometimes lead to lower offers than what you might expect based on your market research.
There are a few reasons why you might be seeing a shift in how insurance companies handle these claims:
Market Changes: The used car market has been fluctuating significantly over the past couple of years due to supply chain issues, inflation, and other economic factors. Insurance companies may be adjusting their algorithms and methods for evaluating vehicles based on these trends.
Cost Control: Many insurance companies are under pressure to manage costs and remain profitable. This may lead them to offer lower initial valuations in the hopes that they won’t have to negotiate as much.
Adjustment Practices: Some insurance companies may be more resistant to negotiation based on the data they collect. They may have policies in place that limit their flexibility, relying heavily on their internal valuation tools rather than considering external evidence.
Changes in Competition: The competitive landscape in the insurance industry is always evolving. Some companies might be trying new strategies to retain customers or manage risks, leading to what seems like a more aggressive approach in negotiations.
If you find yourself consistently getting lowballed, document all your evidence, including your compiled comps, and present a strong case for negotiation. If that doesn’t work, consider escalating the issue or seeking advice from an independent adjuster or advocate who can help with the claims process.