Insurance Company Valuation Questioned
I was recently involved in an accident where the other driver, at fault, was in a marked company delivery vehicle that collided with my car. The insurance company has deemed my vehicle a total loss and is offering an unreasonably low amount based on their assessed ACV (Actual Cash Value).
My car is a 2005 Ford Crown Victoria police interceptor with 248,000 miles. It has been meticulously maintained and has had significant recent upgrades, including brand-new front and rear suspension, and a complete drivetrain replacement using lower-mileage components. Additionally, it comes with several rare options that aren’t typically found in standard models.
The insurance company’s offer is $1,770. They arrived at this figure by referencing two comparable vehicles located over 800 and 1,000 miles away. Both of these are LX models—not interceptors—so they lack essential upgrades like oil coolers and transmission coolers. To make matters worse, they’ve deducted over $700 from their valuation due to an alleged “lower condition” of my car compared to an average Crown Victoria.
As a mechanic by trade, I can confidently assert that mine is in excellent condition and has been maintained far better than the typical car with 250,000 miles. Unfortunately, the insurance adjusters seem unwilling to acknowledge this or provide a clear justification for their low valuation.
For context, I’ve seen listings on AutoTrader for cars with over 300,000 miles selling for $3,400, often in notably worse condition than mine.
It feels like the insurance company is trying to shortchange me and are pressuring me to make a quick decision about whether I want to keep my car, implying their offer is non-negotiable.
Do I have the right to reject their offer? What steps can I take to dispute this valuation?
It sounds like you’re dealing with a frustrating situation. Fortunately, you do not have to accept their initial offer, and there are several steps you can take to negotiate a fairer settlement.
Document Everything: Gather all the maintenance records, photos, and any documentation that shows the condition and upgrades of your vehicle. This will help bolster your argument for a higher value.
Collect Evidence of Comparable Sales: Continue to research and collect listings of similar vehicles in better condition or with comparable upgrades. Make sure to include listings from reputable sources and emphasize the differences between their pricing and your vehicle’s condition.
Prepare a Valuation Report: If possible, consider getting an independent appraisal of the vehicle’s value, especially given its unique features and condition. A professional mechanic or appraiser can provide an expert opinion that may carry weight in negotiations.
Communicate with the Insurance Company: Contact the claims adjuster and express your concerns politely but firmly. Present your evidence clearly and request a reassessment of their valuation based on the facts you’ve gathered.
File a Complaint: If you’re still not satisfied after presenting your case, you can file a complaint with your state’s insurance department. They may provide additional guidance on how to proceed.
Consider Legal Advice: If the situation does not improve, consulting with an attorney who specializes in insurance claims might be beneficial. They can provide you with specific advice tailored to your situation and assist with negotiations or disputes if necessary.
Negotiate: Stay persistent in your negotiations. Be clear about what you believe to be a fair value based on your evidence, and do not hesitate to propose a number that reflects your findings.
These steps should help you navigate the process and hopefully lead to a more acceptable outcome. Good luck!