Auto Insurance Claims: Payment on total loss of hard to find vehicule, Virginia Total Loss

Question
QUESTION: My car was totaled and insurance company declared it total loss. They offer me equivalent of trade-in value at most even they declare it as "dealers value estimate". KBB with adjustment to miles (I have a bit more than average) gives the number about $4K higher, and local listings for similar car is about $3-4K higher KBB numbers. I ordered independent appraisal but the adjuster is telling me that "he will take it into consideration".
1 - Can I enforce my insurance to match the numbers of independent appraiser?
2 - Can I expect reimbursement based on market prices (which are higher than KBB numbers) or it will be banging against the wall?

Thanks in advance for your guidance.

ANSWER: Sergei,

  If you are dealing with your insurance company, then you likely have a great option.  Most policies have an "umpire" clause.  The umpire clause allows you and the insurance company to agree upon a "judge" who will look at your independent's report and look at the insurance company's report and decide which is most accurate.


  Depending on which state you are located in, the market value can change.  For example in Oregon, the market is retail, but in Texas, the market is the private market.   Clearly the retail market will be much higher priced than the private market.  Let me know if you need further direction.  Information is always free at Petty Details, LLC!

   I hope this helps.

---------- FOLLOW-UP ----------

QUESTION: Hi Justin,

Thanks for you helpful information. Where can I find if my state - VA goes by retail or private? I looked through my insurance papers but did not find this clause.

Thanks!

Answer
The Virginia Code defines "actual cash value" as follows:

§ 46.2-1600. Definitions.

The following words, terms, and phrases when used in this chapter shall have the meaning ascribed to them in this section, except where the context indicates otherwise:

"Actual cash value," as applied to a vehicle, means the retail cash value of the vehicle prior to damage as determined, using recognized evaluation sources, either (i) by an insurance company responsible for paying a claim or (ii) if no insurance company is responsible therefor, by the Department.

Additionally, in your policy, check section D entitled Coverage for Damage to Your Auto, near the end there should be a section entitled "Appraisal", this is the clause that should give you the right to force the insurance company to negotiate a little better.  Unless your company has purposely taken this part of the policy out, then it is in there.  It is a standard ISO policy language that almost all insurance companies utilize.

I hope this helps!