If your car was totaled in a collision, there's a good chance that the Insurance Company will use CCC Information Services to generate a valuation. What you need to know. When your car is declared a total loss after a motor vehicle accident, many auto insurance policies, including many in Pennsylvania, provide that you will be reimbursed for the actual cash value (read: market value) of your vehicle.
How is that determined? The Insurance Company will use a "guide source"
Heard of NADA and Kelly Blue Book? Well, many Insurance Companies prefer to use CCC Information Services ("CCC"). Why, you wonder? For starters, CCC has contracts with many insurance companies, including Nationwide, Geico, Allstate, etc. CCC has grabbed a large market share of business from the Insurance Companies by saving them money on claims translating into lower average claim payouts for policyholders. CCC uses a "database" whereby it looks up vehicles of "like kind" to match them to yours. CCC works exclusively on behalf of Insurance Companies. Where the companies are motivated to save money and pay no more than what they can, there is a built in bias.
CCC gives a valuation report sometimes called "CCC Valuescope" Report. Make sure you ask the Adjuster for the written report. If you don't understand the information, ask the adjuster and consider checking with a lawyer.
There are problems potentially in CCC methods. First, the car is given a condition grade-- below average, average, above average, or exceptional. If the condition rating is adjusted downward, then the valuation of your car is affected, Be on the watch for this on the report.
More important CCC compares your car to vehicles in its database that are currently for sale. However, it may not have actually ever looked at those comparable vehicles. CCC uses a "take price" for the comparables. Meaning, they will ask the seller of that car what is the lowest price the seller would "take" for that car. A problem is that "take price" isn't necessarily what the dealer or seller sells it for - it may sell for more. Also, you may not be able to negotiate a replacement vehicle for that lowest possible price. Also, it has been stated that CCC often does not actually obtain a "take price" but rather applies a set percent discount to sales prices to get a "take price"- an arbitrarily low method.
It is important to always ask the Insurance Company for written documentation of how their total loss offer to you was calculated. If CCC was used, or any other source, make sure you understand how they calculated the amount. You may also want to check on your own with sources such as NADA.com or by looking for vehicles for sale at dealers or in auto trader or other listings on your own.
