I’m often asked: How do you negotiate total loss value? Well, let’s answer that question right now!

Imagine driving your beloved car one day, and the next, it's declared a total loss by your insurance company after an accident. It's more than just a vehicle; it's part of your daily life and, let's be honest, a significant investment. When you need to challenge a total loss assessment, it doesn't just affect your mobility—it hits your finances and emotional well-being. At Auto Praise, we understand this impact deeply, and we've guided countless vehicle owners through the challenging process of disputing total loss assessments to ensure they receive the compensation they truly deserve.

Understanding Total Loss

What is a Total Loss?

In insurance terms, a total loss occurs when the cost of repairing a vehicle exceeds its actual cash value (ACV), or sometimes if the repair costs are a certain percentage of the ACV, depending on state regulations. This percentage varies, but typically it's between 70% and 100%. Understanding how to challenge a total loss assessment starts with knowing this threshold because it directly influences the insurer's decision to total a vehicle.

How Insurers Determine Total Loss

Insurers calculate what they believe to be the ACV of your vehicle using various data models and market trends. However, these figures can often undervalue your car, especially if it has specific features or enhancements that aren't adequately accounted for. This is where the need to challenge a total loss assessment begins, and knowledge is your best defense.

Constructive Total Loss

Constructive total loss in automobiles refers to a situation where the cost to repair a car is nearly as high or higher than its actual value. This often leads to the insurance paying out the value of the car instead of covering repairs.

• A car is typically declared a constructive total loss when the repair costs are more than or close to the value of the car.

• In Florida, a vehicle may be declared a total loss if repair costs exceed 80% of its value before the accident. This number varies by state.

• Insurance companies prefer to settle by paying the car's value rather than repair costs when this threshold is met.

Actual Total Loss

• An automobile actual total loss occurs when a car is so damaged that fixing it would cost more than the car's worth. This typically involves financial calculations where repair costs exceed a significant portion, often 80%, of the vehicle’s value before the accident. In such cases, the car is usually not repaired, and the insurance company pays the owner the car's pre-accident value instead.

How Do You Challenge a Total Loss Valuation

If you disagree with your insurance company’s total loss valuation, you can invoke the appraisal clause in your policy. This means both you and the insurance company hire independent appraisers to decide the car's value. If they disagree, an umpire makes the final decision. Hiring an independent appraiser involves finding a qualified professional who can fairly assess the market value based on your car’s condition, mileage, and other relevant factors to ensure you receive a fair settlement.

Preparing to Dispute the Assessment

Why You Need a Professional Appraisal

Here’s where companies like Auto Praise step in. A professional appraisal from a licensed adjuster can be a game-changer. For instance, I once worked with a client whose custom car was initially undervalued by $15,000. After our detailed appraisal, which highlighted the car’s rare features and condition, the insurance payout was adjusted to reflect its true market value. This successful challenge to a total loss assessment showcases the power of expert support.

Hiring an Expert: The Auto Praise Advantage

At Auto Praise, we’re not just adjusters; we’re car enthusiasts and experts. Our team includes licensed adjusters as well as ASE Master certified technicians and I-CAR Platinum Certified auto physical damage appraisers, equipped to assess the true value of your vehicle accurately.

Leveraging Expertise for Your Benefit

Our process involves a thorough inspection of your vehicle, comparing it against current market data and trends, and producing a detailed report that supports your claim. This report can significantly shift negotiations in your favor when you challenge a total loss assessment.

Conclusion

Challenging a total loss isn't just about fighting for more money—it's about ensuring justice for your investment and the memories associated with your vehicle. At Auto Praise, comprised of licensed adjusters and certified professionals, we believe no one should have to accept an unfair assessment without a fight.

Call Auto Praise Today

Are you facing a total loss decision? Don’t walk through it alone. Contact Auto Praise today to challenge your total loss assessment and ensure your vehicle gets the valuation it deserves. Let us help you turn a difficult situation into a victory.