How to Maximize Your Car's Value After a Total Loss Claim
When your car is declared a total loss, the insurance company is required to honor the amount mentioned in your policy as the OBV (Orange Book Value). Often, the insurance company's valuation might not reflect the true market value of your car. This article will guide you on how to ensure you receive the maximum possible value for your totaled car.
Understanding the Insurance Company's Obligation
After a total loss, the insurance company is bound to pay the fair market value of your car based on the OBV. The OBV is an algorithmic pricing engine for used car valuation and is meant to provide a fair and accurate assessment. However, it is important to note that it is not possible to get any amount over and above this valuation unless additional factors are considered. Therefore, it is crucial to review your policy to understand the exact amount you are entitled to.
Proving the Car's Undamaged Value
To contest the insurance company's valuation and potentially obtain a higher amount, you need to provide evidence that the undamaged value of your car is higher than what the insurance company is offering. This involves:
Verification of the Evaluation: Make sure the insurance company has listed all the necessary information and features correctly on their evaluation. Adjusters can sometimes miss important details. Local Market Research: Conduct a thorough market research by checking local dealers or websites that list similar cars. If you can find 2-3 cars with the same make, model, mileage, and features in your local area, you can present this information to the insurance company.It is important to note that the values mentioned by the insurance company are not based on what you owe or what you want for the car, but rather on the value of the car at the time of the loss. This is a key factor in how insurance companies assess total loss claims.
Examples of Discrepancies
My experience as an ADA (Adjuster) has shown that there can be discrepancies in the company's stated value for cars. In some cases, the insurance company may undervalue your car by a significant amount. For instance, I had several instances where the company's valuation was notably lower than the fair market value in my area. Therefore, it is important to do your due diligence and present concrete evidence to support your claims.
Key Steps to Follow
1. Review Your Policy: Start by thoroughly reviewing your insurance policy to understand the OBV and any other relevant terms. 2. Verify the Evaluation: Check the insurance company's evaluation and ensure all details are correct. 3. Conduct Market Research: Look for comparable cars in your local area and gather evidence of their values.
By taking these steps, you can significantly increase your chances of receiving a fair and accurate valuation for your totaled car. Remember, the goal is to provide undeniable evidence that your car's value is higher than the insurance company's initial offer.
In conclusion, while the insurance company's OBV is a starting point, you can take proactive steps to ensure you receive the maximum possible value for your totaled car. With thorough research and evidence, you can challenge the insurance company's valuation and increase the chances of a favorable outcome.