State Farm Settlement Lower than Appraised Value: What Should We Do? (Arkansas)
Hello everyone,
I appreciate any advice or insights you can provide. To give you a brief overview, my spouse was recently in an accident, resulting in our car being declared a total loss. We are currently in the process of settling our claim with State Farm here in Arkansas.
Recently, we received a document that included an appraisal of the totaled vehicle, conducted by CCC and funded by State Farm. This appraisal contains the first set of numbers listed below. The same document also shows the settlement amount that State Farm plans to offer us, which is over 30% lower than the appraised value.
We are confused about this significant discrepancy and have a few questions:
- Is it typical or acceptable for settlements to be so far below the appraised value?
- Should we advocate for the full appraised amount?
- Is there anything important we may have overlooked in the settlement process?
Thank you once again for your help!
Appraisal Details:
- Base Vehicle Value: $13,267
- Adjusted Vehicle Value: $13,267
- Vehicle Tax: $887
- Value Before Deductible: $14,154
- Deductible: ($500.00)
Total: $13,654
Settlement Statement:
- Source Valuation: $9,690
- Total Additions: $0
- Total Deductions: $0
- Actual Cash Value: $9,690
- Plus Taxes: $364
- Title Transfer: $11
- Title Fee: $0
- Tag Fee: $0
Subtotal: $10,065
- Deductible: ($500)
Total Net Payable to You: $9,565.15
Hi there,
I’m sorry to hear about your situation; dealing with an accident and insurance can be really frustrating. It’s definitely concerning that the settlement amount is so much lower than the appraised value. Here are some steps you might consider taking:
Review Your Policy: Start by reviewing your insurance policy to understand how they calculate the settlement amount, specifically focusing on terms related to total loss and actual cash value (ACV).
Request an Explanation: Reach out to your State Farm claims adjuster directly to ask for clarification on why the settlement amount is significantly lower than the appraised value. They should be able to provide reasoning based on their valuation methods.
Challenge the Valuation: If you feel you have a valid case, don’t hesitate to push back. You can request a reevaluation of your vehicle’s worth by gathering evidence like similar vehicle listings (in your area) or additional appraisals from third-party providers.
Document Everything: Keep a detailed record of all communications and documentation related to your claim. This can be helpful if you need to escalate the issue.
Consider Professional Help: If you’re not making progress, you may want to consult with a public adjuster or an attorney who specializes in insurance claims. They can offer guidance specific to your case and may help you get a better outcome.
Check for State Regulations: Familiarize yourself with any regulations in Arkansas regarding insurance settlements and the obligations of insurance companies in total loss situations.
It’s definitely worth advocating for yourself to ensure you get a fair settlement. Good luck, and I hope you get this resolved quickly!