Total-loss offer seems low? What to gather and ask

1. Ask for the written breakdown

California’s claim regulations say the cost of a comparable automobile must be fully itemized and explained in writing for the claimant at the time the settlement offer is made. 10 CCR § 2695.8(b)(4) In Nevada, deductions must be itemized and the basis for the settlement must be documented and fully disclosed to the claimant in writing. NAC 686A.680(2)

Questions to send the adjuster in writing:

• Which comparable vehicles did you use, and where and when were they offered for sale?
• What adjustments did you make to their prices, and why?
• Did you deduct anything for my car’s condition or for prior damage? What documents support it?
• Which taxes, transfer fees and registration fees are included?
• How much is the deductible, and how will payment be split if a lender is owed money?

2. Check the comparable vehicles

In California, a comparable automobile is one of like kind and quality: the same manufacturer, the same or a newer model year, the same model type, a similar body type, and similar options and mileage. A newer model year can be used only when there are not enough comparables from the same year. 10 CCR § 2695.8(b)(2)

• Local and recent. Each comparable must have been available for retail purchase in the local market area within 90 days of the final settlement offer.
• Identifiable. Each one is identified by VIN, dealer stock number or license plate when available, plus the seller’s phone number or street address.
• Adjustments shown. Adjustments must be discernible, measurable, itemized and documented. A deduction for condition is allowed only when your car’s documented condition is below average for its year, make and model.

Compare each listing with your car: trim, options, mileage, title status and location. Note any that do not match. 10 CCR § 2695.8(b)(2) In Nevada, any departure from the comparable-vehicle figure must be supported by documents describing the car’s condition. NAC 686A.680(2)

3. Gather your own records

• The window sticker or build sheet that lists the trim and factory options.
• Receipts for maintenance and recent work, such as tires, brakes or a new battery, with dates.
• Photos of the car from before the crash, inside and out, and the odometer reading.
• Your registration card, which shows when the current registration expires.
• Your loan or lease statement and the lender’s payoff amount, if you still owe money.
• Any similar vehicles for sale near you, with the date, VIN, seller and asking price.

Send copies, not originals, and keep a note of what you sent and when. In California, one of the factors for judging whether an offer is unreasonably low is how far the insurer considered evidence the claimant submitted to support the claim. 10 CCR § 2695.7(g)(1)

4. Check the taxes and fees

In California, a total-loss cash settlement must include all applicable taxes and one-time fees for transferring ownership of a comparable automobile, plus the license fee and other annual fees for the remaining term of your current registration. 10 CCR § 2695.8(b)(1) The Department of Insurance summarizes it the same way: a total-loss settlement must include taxes, license and transfer fees. California Department of Insurance

In Nevada, a cash settlement is based on the cost to purchase a comparable automobile, including all applicable taxes, license fees and other transfer fees, less any deductible. NAC 686A.680(1)

5. If you want to keep the car

In California, when the owner keeps the total-loss vehicle, the insurer may deduct its salvage value. On request, the insurer must give you the name, address and phone number of the salvage buyer it used. It must also tell you in writing that DMV must be notified when you keep the salvage, and that this may affect the car’s future resale or insured value. 10 CCR § 2695.8(b)(1)(A) In Nevada, a salvage deduction must be itemized and specified as to amount. NAC 686A.680(2)

6. If you cannot find a similar car for the amount

On a California claim under your own policy, the insurer must tell you, when it sends payment or makes its final offer, that it will reopen the claim if you notify it within 35 calendar days that you cannot buy a comparable automobile for the gross settlement amount. The regulation then lists what the insurer must do next. 10 CCR § 2695.8(c)

If you are claiming against the other driver’s insurer, California’s comparable-vehicle standards in § 2695.8(b) apply to that claim too, but the 35-day reopening notice is written for claims under your own policy. 10 CCR § 2695.8(b)(6), (c)

7. Keep a dated record and know where to ask

Write down every call and message: date, person, what was asked and the next step. In California, an insurer generally has 15 calendar days to respond to a communication that reasonably calls for a reply. 10 CCR § 2695.5(b)

Start with the adjuster. If a question stays unresolved, the California Department of Insurance takes consumer questions and complaints online. California Department of Insurance: Getting Help In Nevada, the Division of Insurance’s Consumer Services Section handles consumer inquiries, including questions about claims. Nevada Division of Insurance

Put the disagreement in writing and ask the adjuster what would change the decision. In California, the Department of Insurance runs an Automobile Claims Mediation Program for disputes under your own collision or comprehensive coverage, such as the extent of damage, the repair method or a total loss, when the overall claim exceeds $7,500 and the amount in dispute exceeds $2,000. You first go through the Department’s complaint process. There is no cost to you, and mediation is non-binding. It does not cover claims against another driver’s insurer. The Department’s consumer hotline is 1-800-927-4357. CA Department of Insurance: Auto claims mediation

LegalMax can help you organize these records and questions in English or Spanish. It does not set or predict the amount of an offer. Legal questions about a dispute or a deadline call for a licensed attorney.

Common questions

Official sources