TTL Valuation Concerns – Can I Challenge the Mileage Adjustment?
After my car was totaled in an accident, I received the total loss offer and valuation report for my vehicle. I have a few concerns that I’d love some feedback and guidance on. Specifically, I’m worried about the mileage adjustment rate and an outlier among the comparable vehicles. Just to clarify, the other party was at fault, and my insurance will cover the cost, with plans to seek reimbursement from the at-fault driver’s insurance. My car was a 2014 Nissan Sentra.
Mileage Adjustment
Upon reviewing the figures, I calculated that the mileage adjustment rate comes out to about $0.02 per mile, which seems quite low. My vehicle had 88,000 miles, while the comparable vehicles have 93,000, 116,000, 124,000, 126,000, and 129,000 miles. Notably, one car with 41,000 more miles than mine was only adjusted down by $820, which I believe is unreasonable. What is the industry standard for mileage adjustments? I feel a rate of at least $0.05 per mile would be more appropriate.
Outlier in Comps
I also noticed an outlier in the comparison report that is affecting my vehicle’s valuation. Most vehicles are valued at $6175, $6899, $6995, and $6999, but one car is listed significantly lower at $5300 by a private seller, which is skewing my car’s value downward. I found another comparable vehicle—$6000—just 72 miles away from my location (the original search radius was 50 miles). Is it reasonable to suggest replacing the outlier with this more accurate comp?
I truly appreciate any advice you can provide on these matters. Thank you!
It sounds like you have some valid concerns about the valuation report you’ve received for your totaled vehicle. Here’s how you might want to approach both issues:
Mileage Adjustment:
First, it’s great that you’ve done some calculations on the mileage adjustments. You’re correct that adjustments should reflect the relative value differences based on mileage. In general, mileage adjustments can vary by region and specific vehicle, but an adjustment of $0.02 per mile does seem quite low, especially considering the difference in miles across comparable vehicles.
To strengthen your case, research what the common industry standards are for mileage adjustments for vehicles similar to yours, potentially from reputable resources like trade guides (Kelley Blue Book, NADA Guides, etc.). If you find evidence that a $0.05 per mile adjustment is more typical for your vehicle type and mileage, gather this information to support your argument. Consider reaching out to your insurance adjuster with this data, as it could help you make a compelling case for a reevaluation of the mileage adjustment.
Outlier in Comps:
Regarding the outlier in the comps, it’s also reasonable to point this out. Valuations should ideally use comparable vehicles that reflect fair market value in your area. If a particular vehicle significantly undercuts the market rate, it could skew the valuation unfavorably.
You can indeed ask if they can replace that outlier with a more appropriate comparable. When doing so, you can reference the higher-valued vehicle that you found 72 miles away. Although it’s farther than the original search radius, showing them that you’ve researched comparable vehicles will demonstrate that you’re actively looking for fair market values. Emphasize how that car is a closer match not only in price but also in condition, mileage, and features to your own vehicle.
In summary, gather evidence on both the mileage adjustment rate and comparable value. Present this information clearly and professionally to your insurance adjuster, as it could lead to a more favorable outcome. Good luck!