Frequently Asked Questions.
FAQ
Total Loss FAQ's
If your car was declared a total loss, the number your insurance company put in front of you is rarely the number you are actually owed. Total loss settlements are built by valuation software, not by people who have seen your vehicle, and the trim, options, mileage, and condition that make your car worth more are often understated or left out entirely. The good news is that the offer is negotiable, and the burden of proving a higher value can be met with a licensed independent appraisal. The questions below cover how total loss valuations work, why insurer offers come in low, how to dispute them, and how our flat fee appraisal and claim review services help you settle for what your vehicle is really worth. If you do not see your question answered here, call us at (877) 667 2326 or start with a free claim review.
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A total loss happens when the cost to repair your vehicle, plus its salvage value, is greater than its actual cash value before the accident. At that point the insurer decides it makes more financial sense to pay you the pre accident value of the car rather than fix it.
Carriers also total a vehicle when it is unsafe to repair or cannot be returned to its pre loss condition. Once your car is declared a total loss, the fight is no longer about repairs.
It is about the dollar value the insurer assigns to your vehicle, and that number is almost always negotiable.
Your vehicle is totaled when the cost of repair plus salvage value exceeds its actual cash value. Many states also use a Total Loss Threshold, a fixed percentage of the vehicle value above which the car must be totaled, while other states rely on a Total Loss Formula. The exact trigger depends on your state and your carrier. What matters most to you is that once the car is totaled, the insurer owes you the actual cash value of the vehicle, and you have the right to challenge that figure if it is too low.
Actual cash value is what your specific vehicle was worth on the open market the moment before it was damaged, accounting for its year, make, model, trim, mileage, options, and condition. It is not the price of a brand new replacement and it is not the loan balance you still owe. ACV is the heart of every total loss settlement, and small errors in trim, equipment, or condition can swing it by thousands of dollars. This is the single number an independent appraisal is designed to verify.
Insurers do not use Kelley Blue Book, Edmunds, or NADA retail listings to value a total loss. They use valuation software, most often CCC, that builds a value from comparable vehicles and then applies condition and equipment adjustments. Those adjustments frequently understate your car. Comparable vehicles may be pulled from far away markets, your trim or factory options may be missing, and the condition rating may be lower than your car deserved. The result is an offer that looks nothing like the retail prices you found yourself, which is exactly why a documented independent appraisal carries weight.
Insurance carriers generally outsource the valuation to third party software providers rather than calculating it in house. CCC, JD Power, Mitchell, and Audatex are the largest providers of these total loss valuation reports. The adjuster handling your claim usually accepts the software output with little change. Because these reports are generated by a vendor working for the insurer, they tend to favor the lower end of your vehicle value, which is what you are entitled to dispute.
Salvage value is what the damaged shell of your vehicle is worth, essentially the value of the wrecked car as parts or scrap. This figure is normally provided by a salvage auction and reflects what similarly damaged vehicles have sold for recently. Salvage value matters mainly when you decide whether to let the insurer keep the car or retain it yourself. It is one of the inputs that determines whether your vehicle crosses the total loss line in the first place.
In most cases yes, through what is called an owner retained salvage. The insurer pays you the actual cash value and then subtracts the salvage value, leaving you with the wrecked vehicle and a reduced check. Owner retention can make sense if the damage is largely cosmetic or if you want the car for parts, but it usually means a salvage or rebuilt title going forward. Rules vary by state and lender, so confirm the details before you choose this path.
Insurance companies are required to give you the valuation or appraisal report they relied on to set your vehicle value. Ask the adjuster directly and request it in writing. You can review a sample to see how these reports are structured here: Insurance Total Loss Report Sample. Reading this report line by line is how you find the trim mistakes, missing options, and unfair condition ratings that lower your offer.
Yes. If you believe your vehicle is worth more than the insurer is offering, the burden is on you to prove the higher value. The most effective way to do that is to provide the carrier with an independent appraisal report, which is exactly what you order from us. A well documented appraisal gives the adjuster a defensible reason to raise the offer and gives you leverage if the claim escalates to the appraisal clause.
The recurring problems are wrong trim level, missing factory or dealer installed options, an unfairly low condition rating, comparable vehicles pulled from distant or dissimilar markets, and downward adjustments that the software applies automatically. Mileage and prior sale assumptions are also frequently off. Any one of these can cost you hundreds to several thousand dollars. An independent appraisal exists to catch each of these and document the corrected value.
You contact a legitimately licensed auto appraiser and order a vehicle valuation report. We charge a flat $275 for the appraisal. The fee is fixed and is not a percentage of your vehicle value, so whether your car is worth $5,000 or $150,000, the cost is the same $275. You can start the process by phone at (877) 667 2326 or request a review online.
The quote is free. We tell you what we believe your car is worth before you pay us anything. If you then decide to move forward with a written appraisal, the cost is a flat $275 and is paid at that point. The appraisal fee never changes based on the size of your settlement, so there is no percentage taken out of what you recover.
Yes, as long as the appraiser issuing it is licensed and competent. A credible independent appraisal from a qualified appraiser is recognized as valid evidence of value and is difficult for a carrier to dismiss. If your policy contains an appraisal clause, your report also becomes the foundation for that formal process. The key is that the report is professional, well documented, and defensible, which is the standard we hold every appraisal to.
Usually not. A physical inspection is only necessary when we are disputing the condition or equipment listed on the insurer’s report and need to document the car firsthand. For most total loss disputes, we work from the insurer’s valuation, your photos, and market data, which means the process is fast and can be handled remotely no matter where you are located.
It varies by vehicle and by how far off the insurer’s offer is. Some disputes correct a few hundred dollars, others recover several thousand when the original valuation contained significant trim, option, or condition errors. There is no guaranteed figure, which is why we start with a free claim review. We look at your numbers first and tell you honestly whether a paid appraisal is likely to move your settlement before you spend anything.
Yes. On a first party claim, meaning a claim against your own carrier, we will negotiate and settle directly with the adverse appraiser. This service is $300 per hour, prepaid, and the overwhelming majority of claims settle in under one billable hour. On smaller or more complex claims, payment arrangements can be made on a case by case basis. This is separate from the $275 appraisal and is for clients who want us to handle the back and forth directly.
Yes. While we are based in Atlanta and know the Georgia and North Carolina markets in depth, we prepare total loss appraisals for vehicles nationwide. Total loss valuation principles and the major valuation vendors are the same across the country, so we can build a defensible report for your claim regardless of which state you are in. Call (877) 667 2326 or text (678) 702-2803 to confirm your specifics.
A first party claim is filed against your own insurance company under your own policy, for example when you carry collision coverage. A third party claim is filed against the at fault driver’s insurer. The valuation issues are similar, but your rights and tools differ. The appraisal clause, for instance, generally applies only to first party claims under your own policy, which is why it matters to know which type of claim you are dealing with.
If you do not agree with your own company’s offer, your policy may include an appraisal provision that creates a formal way to resolve the dispute. Typically it works like this:
You hire your own independent appraiser and pay for that appraiser.
The insurance company hires and pays for its own appraiser.
If the two appraisers cannot agree, they select an umpire.
The umpire is a neutral third party who settles the disagreement, and the agreement of any two of the three becomes binding.
Invoking the appraisal clause is often the fastest path to a fair number when the adjuster will not move, and a strong independent appraisal is what makes the process work in your favor.
Total loss claims in Georgia are governed by the state insurance regulations. The controlling citation is GA ADC 120 2 54 .06. You can review the full text here: Total Loss Claims in Georgia. These rules set out how carriers must value and settle total loss claims in the state, and they are useful leverage when an offer falls short of what the regulation requires.
No, they are two different claims. A total loss claim deals with a vehicle the insurer has decided not to repair, where the issue is the cash value of the car. A diminished value claim applies to a vehicle that was repaired but lost market value because it now has an accident on its history. We handle both, so if your car was repaired rather than totaled, the diminished value side of our work may apply to you instead.