What guidelines does an insurance adjuster use...?

Question

to determine the reimbursement offered under an auto insurance policy for a stolen car?

My car was stolen a few days ago and I'm curious what offer I will get if the car is not recovered. I know the Kelly Blue Book value is about $4500 and I don't want to accept anything less. I'm just concerned my insurer will try to low-ball me. So, do they use the same guidelines for determining value?

Answer 1

I wouldn't plan on sticking to your guns with the Kelley Blue Book value. All their prices are vastly overinflated. Chances are, you consider your vehicle to be in retail condition. You may have even rated your vehicle in excellent condition. If you rated your vehicle in excellent condition, go back and read the fine print on KBB.com that says only 5% or less of ALL vehicles are actually in excellent condition. Chances are, if your vehicle was a daily driver, it was only in average condition. To get a legitimate basis for what your vehicle was worth, go to NADA.com and type in your correct milage and options and see how much the "average" condition value is.

Remember, your company owes you for the vehicle's actual cash value. In a nutshell, what you could've sold the vehicle for on the open market just prior to the loss. Be diplomatic with the adjuster, not authoritative, and the whole process will go MUCH more smoothly.

Answer 2

MSAD's answer is 100% aaccurate.  Insurance companies do not use the Kelly Blue Book to determine the ACV.    

When discussing settlement, make sure the adjuster has all of your vehicle's options and the correct mileage.   DO NOT cop an attitude with the adjuster.  That will get you no where.  Be polite and ask for a complete breakdown of how the ACV was determined.

If you disagree with the amount offered, check your policy for the appraisal provision.  Most have it.  

This would allow you to get an independent appraisal of the damage, which would then be reviewed by an "umpire" jointly selected by your appraiser and that of your auto insurance company.  If the two appraisers can't agree on an amount of your car's ACV and damage, the umpire steps in, basically to take one side or the other to help resolve the issue. You pay for your appraiser and and share the arbitrator's fee.

Answer 3

No insurance company that I know of uses Kelly Blue Book. In general, Kelly Blue Book values are inflated.

If they are going to use a book, the industry standard is the NADA (National Automobile Dealers Association) book. You can get a value there at www.nadaguides.com.

Most insurance companies use a market survey program (such as CCC or Total Logic). In general, these values are the most accurate because they are based on cars that are actually sold.

The insurance company owes the actual cash value of your specific car - given it's age, mileage, condition and options. The vast majority of cars are not in top retail condition. The values listed in the books as retail -- means the car is retail ready - the only thing missing is the window sticker. The average car on the road is not in this condition. Did you really have the engine steam cleaned? Probably not. A dealer would have to put work into most cars and detail them in order to sell them.

You will probably not be offered top retail value for your car.

If the car is financed - first money goes to the bank. Anything left over goes to you. If you owe more than the car is worth - you are "upside down". The insurance company does not owe the value of your note. The owe only the actual cash value of that specific car.

Answer 4

MSAD answered it perfectly!!