Hello everyone. A few weeks ago I was involved in an accident and my vehicle has been declared totaled. That vehicle I bought it brand new 23 plus years ago. 1 owner. And this vehicle was planned to stay for generations. Does the insurance looks into all that emotional loss/sentimental value etc etc when it comes to your personal belongings such as a car?

Thanks in advanced!

Miller M2 said:

Does the insurance looks into all that emotional loss/sentimental value etc etc when it comes to your personal belongings such as a car?

Click to expand...

Table of contents
1.
How to negotiate with an insurance adjuster
2.
How should you respond to a low settlement offer?
3.
Getting a higher value for your car
Table of contents

It may seem surprising, but the car insurance settlement you're offered after a claim is actually negotiable. Whether you file a claim against the at-fault driver's liability coverage or through your own comprehensive or collision coverage, your insurance company will assign a claims adjuster to review your case and determine how much you should be paid.

But the amount they offer you isn't set in stone; you have the ability to push back for a higher amount if you feel the insurance company's offer is too low.


Key takeaways

• If you get a settlement offer that is lower than you think you deserve, you can say no and ask for a better offer (without going to court).
• You need to know how much your car is worth and how much your accident-related expenses are to know whether or not you should negotiate a higher settlement offer.
• Hiring an attorney can be helpful when negotiating a settlement, but the added expense may not be worth it in some situations.

How to negotiate with an insurance adjuster

There is a lot of information your insurance adjuster uses to determine how much you should be paid after an accident, including the value of your vehicle and, if you've been injured, your total medical expenses. The adjuster will use this information to offer you a settlement, but it may be lower than you expected.

The good news is that you also have access to all of the same information. You can review the value of your vehicle, your medical expenses, and anything else you feel should apply to your claim and counter their offer if you've come up with a higher figure.

But if you are going to counter your insurance company's settlement offer, you'll need to take the following steps:

1. Figure out what your vehicle is worth

Whether your car was totaled in an accident or just needs minor repairs, it is important to know what your vehicle is worth. You can use sources like Kelley Blue Book to figure out the value of your car.

2. Determine if the initial offer is too low

If the insurance company's initial offer is reasonable and will pay for the expenses you've accumulated due to the accident, you don't have to negotiate anything. You can take the offer and repair or replace your car and pay your medical bills. But if you determine the offer is too low, you can (and should) push for a higher settlement.

3. Argue your side of the case

If you decide to negotiate, you'll need to explain why you think the insurance company should increase the settlement. You can use the research you've done to make your point and even share more details from your experience. If you've had trouble sleeping, needed to see a therapist, or your pet was injured in the accident, you can share those things when you are negotiating your settlement.

➞ Learn more about negotiating an insurance settlement for your car

How should you respond to a low settlement offer?

Before you sit down with the insurance company, you should have an idea of what you think a reasonable settlement would be in your situation based on facts, not your emotions.

If you get a settlement offer that is lower than you think you deserve, you can say no and ask for a better offer without going to court.

You should be both polite and firm if you push for a higher settlement. Going to court is expensive and insurance companies don't want to deal with it any more than you do, but if you are insisting on an unreasonable payment they may not hesitate to take your case in front of a judge.

Getting a higher value for your car

If your car is damaged or totaled in an accident and you don't think the claims settlement you've been offered is equivalent to the value of your vehicle, there are several things you can do to get a higher value for your car, including:

• Do your research: Make sure you know the details of your car insurance policy, as well as the laws in your state, and how they apply to your situation.
• Gather your documentation: Do you have maintenance records showing you kept your vehicle in immaculate shape? Gather up your records from previous oil changes, regular maintenance, and any other information showing that your car was in excellent condition before the accident.
• Organize your argument: Take pictures of the damage and provide examples of how the accident has impacted your daily life. Do you now have childcare expenses, lost wages, or domestic services (like a housekeeper or lawn service) you didn't need before the accident? Document those things so they can be included in your claim.

How do insurance adjusters determine the value of a car? (2024)​

Insurance companies will usually assess your vehicle using the actual cash value of your car in the market. We'll cover more details including how your car value is determined.​

UPDATED: Aug 25, 2024Fact Checked

Things to Remember...

• In case of an accident, the insurance company will pay up to the actual cash value (ACV) of the car either to repair it or replace it
• The ACV is the fair market value of your car at the current rate and the pre-accident condition of the car
• The claim amount proposed by the insurer is negotiable

Your car accident was bad enough, but the aftermath can be even more stressful. Once you file your car insurance claim, you might find out your car is totaled. The insurance company might surprise you by valuing your car at a rate less than what you expected.

After your car is valued for less than you expected, you might wonder, "How do insurance adjusters determine the value of a car?"

The insurance valuation process might seem random and make you feel lowballed as the proposed number might differ vastly from what you were expecting. Insurance adjusters don't assign random values. So then what do car insurance adjusters look for?

There are standard methods they have to follow to set a price for your vehicle, and you can also negotiate to get a better value. Let's take a look at exactly how does an insurance adjuster value a car and how do adjusters determine if a car is totaled. We'll also cover what happens after the car insurance adjuster comes out and how to negotiate with your insurance company after a car accident.

How do insurance companies determine a car's value?

So, exactly how do insurance companies determine car values? While most valuation complaints happen after a total loss settlement, a valuation happens anytime you make a claim. Your car will be valued even if you claim minor fender bender damages.

All of your claims will result in the adjuster valuing your vehicle no matter how significant the incident was. The adjuster will then opt to repair or replace your car based on its value versus the amount repairs might cost.

So how do claims adjusters determine value? What do auto insurance adjusters look for? This is the process an auto insurance claim adjuster will follow to value your damaged car:

Inspecting the Damaged Vehicle

The car insurance inspection after accident is the first step in the valuation process. Once you file your claim and disclose the damage to your car, the insurance company will send an adjuster to you or the repair shop to conduct a thorough inspection of the car.

The inspection is to estimate the extent of the damage. Based on this, the insurer will decide whether it is worth paying for repairs or not.

At what percentage of damage is a car considered totaled? If the repairs are more than 70% of the actual cash value of the car, the car will likely be declared a total loss.

Assessing the Car's Condition

This step is important as it's how the insurance company decides the value of your car. If you have filed a claim, you'll want to know, what's the actual cash value of my car? Well, the adjuster will need to access your car to determine the actual cash value (ACV) of the car. An adjuster can't just look at the car and decide the car's value.

But in that case, what do insurance companies use to determine car value? Insurance adjusters have guidelines and resources at their disposal to determine the car's value.

These are the common factors that insurance companies use to determine the value of the car:

• Make, model, and year
• Depreciation
• Pre-loss condition of the car
• Mileage at the time of the accident
• Salvage value
• The sales value of similar cars in the region

The insurance adjuster will derive a fair value for your car by evaluating your car on the above-listed points. Additionally, sometimes they may use a totaled car value calculator or specifically, the Kelley Blue Book totaled car value calculator.

Estimating the Cost of Repairs

The adjuster will then compare the fair market value with the estimated cost of repairs and replacement parts to determine the amount the insurance company should pay or to see if the car repair cost is more than worth the insurance payout. You might wonder, how do insurance adjusters determine the value of a totaled car? If the repair costs are 70% of the ACV of the car, the car will almost always be totaled.

The average insurance valuation of the totaled car will depend on the ACV of the car. How do insurance companies determine car value? Once the insurance company has estimated the amount, you will either receive the cost of repairs or the ACV of the car.

You Can Negotiate the Claim and the ACV of the Car

How can you get more claim money from your car insurance? The answer is by negotiating. You buy insurance so that in case of an accident, your insurance company will pay for the damages, but sometimes you have to push to get an acceptable amount of money back. But can you negotiate with an insurance adjuster on a auto total loss? And if so, how do you negotiate with insurance on a totaled car?

You can even ask your insurance company to total your car if you think they've underestimated the cost of repairs, the impact on your vehicle's future value, or if you think you would be better off replacing a crashed vehicle than repairing it. However, it is always up to the adjuster to make the final call after a car appraisal after an accident.

If your car is totaled in an accident, you can drive up the value of the car by making these points:

• List the additional features of your car
• Give the estimated retail value of your car
• Present comparable sales data of similar cars in your region

These points will give you wiggle room and will help drive up the value of your car. Make sure you know how to negotiate with car insurance adjusters about a car being a total loss and how to get the most money from insurance for a totaled car.

The Replacement Value of Your Vehicle Isn't Random

The insurance valuation of your car isn't based on a whim. So, how does an insurance company determine car value? Insurance adjusters have valuation guidelines and resources they can use to help calculate your car value after an accident such as checking the Kelley Blue Book used car value or another total loss car value calculator tool.

While there is a valuation method, insurers prefer the lowest value of the car as opposed to the policyholders, who would prefer to get the highest possible value for their vehicle. This is why the claim amount you receive is sometimes less than your expectations.

However, if you are not happy with your car insurance valuation, you can negotiate the initial claim amount proposed by the insurance company to get a higher claim payout from your insurer.

Frequently Asked Questions

What is the role of an insurance adjuster in determining the value of a vehicle?

Rather than asking what does insurance use to value a car, you may need to ask who do insurance companies use. If you end up dealing with auto insurance adjusters, you might wonder what exactly they do. Insurance adjusters are responsible for evaluating the value of a vehicle in the event of an insurance claim. Their role is to assess the pre-loss market value of the car and determine the amount the insurance company will pay for the damages or total loss.
An automotive insurance adjuster is pivotal in the total loss settlement process.

What factors do insurance adjusters consider when determining the value of a vehicle?

When learning how insurance determines the value of a totaled car, keep in mind that there are various factors at play. Insurance adjusters consider several factors when determining the value of a vehicle, including the vehicle's age, make, model, mileage, condition, prior damage, and market value. How do adjusters determine actual cash value? They may also consider factors such as regional pricing trends and the availability of similar vehicles in the market.

How do insurance adjusters assess the condition of a vehicle?

So, how do adjusters determine damage on a car? Insurance adjusters typically inspect the vehicle in person or review detailed documentation, such as photographs and repair estimates, to assess its condition. They consider the overall appearance, mechanical condition, and any pre-existing damage when following the process for how do insurance companies determine the fair market value of a car.

What role does the vehicle's age play in determining its value?

Can insurance adjusters tell how old damage is? Does how old a car is affect its value? The age of a vehicle is a crucial factor in determining the current market value of a car. Insurance adjusters consider depreciation, which is the decrease in value over time, when assessing the vehicle's worth.
Generally, older vehicles have lower values due to wear and tear and technological advancements in newer models.

How does mileage affect the value of a vehicle?

Mileage is another important factor in determining a vehicle's value. How does annual mileage affect car insurance? Higher mileage typically indicates more wear and tear, which can result in a lower value. Insurance adjusters take into account the average annual mileage for the vehicle's age and make adjustments based on the actual mileage. There are different car insurance mileage brackets to help them determine this.

What is the role of the market value in determining the value of a vehicle?

Market value refers to the price at which similar vehicles are sold in the current market. Insurance adjusters use market data, such as recent sales of comparable vehicles, to determine the vehicle's value. This information helps ensure a fair assessment based on current market conditions, and insurance adjusters will attempt to provide a fair market value for a totaled car.

How do insurance adjusters determine the value of a vehicle that has been totaled?

So, ultimately, how does insurance determine car value? When a vehicle is deemed a total loss, insurance adjusters assess its pre-loss value by considering the factors mentioned earlier. They then deduct the salvage value, which is the estimated value of the damaged vehicle, to determine the actual car value or the actual cash value (ACV) that the insurance company will pay.

What happens when your car is totaled but still drivable?

You will need to talk to your insurance provider to find out the specific details for a car that's been classified as totaled but is still drivable. You can keep the settlement and turn the car over to the insurance provider, or you can keep both the car and the settlement. Another option is negotiating with the insurance car adjuster if you think the actual cash value of a car is more than what was offered.

The value of 23 year old vehicle won't be anywhere near what you THINK it was worth.


The value the insurer will reimburse you, should surprise you.

If, however, the 23 year old car bears a luxury car badge, as in RollsRoyce, Bentley, Ferrari, Cadillac, Porsche, etc... it'll improve the offer a tad or two.

28-2091 details the rules regarding total loss in Arizona. According to the state, insurance agents can consider a vehicle a total loss if the actual cash value of the vehicle is less than or equal to the costs to repair the car plus the salvage value.

There is no consideration for emotional loss or sentimental value. Depending on the make and model, the cash value of a 23-year-old vehicle is going to be low. You can check Kelley Blue Book used car value online.

Miller M2 said:

Does the insurance looks into all that emotional loss/sentimental value etc etc when it comes to your personal belongings such as a car?

Click to expand...

No.

You can keep the car for the ACV less the salvage value. Then figure out how to repair it for that money.

If it's your own insurance there's a deductible.

I have an attorney involved. This is what my attorney texted me back after I told her that my insurance wants to discuss the total loss of my vehicle:" Hey [my name], thank you for the update. Please give them a call to discuss your vehicle's total loss. Once you get payment for the vehicle, the property damage portion of the claim will be resolved but bodily injury will continue. I will contact the medical provider to make sure you get re-scheduled for that MRI."

Miller M2 said:

I have an attorney involved. This is what my attorney texted me back after I told her that my insurance wants to discuss the total loss of my vehicle:" Hey [my name], thank you for the update. Please give them a call to discuss your vehicle's total loss. Once you get payment for the vehicle, the property damage portion of the claim will be resolved but bodily injury will continue. I will contact the medical provider to make sure you get re-scheduled for that MRI."

Click to expand...

Sounds like we're done here.

Miller M2 said:

Does the insurance looks into all that emotional loss/sentimental value etc etc when it comes to your personal belongings such as a car?

Click to expand...

No. In a car accident, the owner is entitled to the lesser of the cost of repair or the car's fair market value. Most turn of the century cars aren't going to be worth much unless they have abnormally low mileage and/or are in pristine condition and/or are somehow unique/rare.

Miller M2 said:

Please give them a call to discuss your vehicle's total loss.

Click to expand...

That tells me that the lawyer won't be much help in the car damage claim.

adjusterjack said:

That tells me that the lawyer won't be much help in the car damage claim.

Click to expand...

Exactly they legally are not representing me on the car damage claim. So now I have to deal with it myself which it will be a learning experience or should I get an attorney just for this particular matter since my current attorney is for bodily injuries only. ?

So my vehicle is a 2001 5.4 v8 super crew Lariat edition. Bought it brand new and the claim adjuster has a value offer of $5100 they keep the truck or $4000 I keep the truck. $4000 will not be enough to fix it. I was t boned in the accident. The truck is in pretty bad shape the damage that my truck has sustained is already passed the $7000 figure according to the adjuster. This is what the adjuster said (enjoy lol):

"Thank you for taking the time to speak with me today attached is the two options for total loss settlement. I highly do not recommend keeping the vehicle due to the amount of damage it has sustained the estimate for damage is already 7,600 and that's not including once they get into the vehicle if more parts are damaged as well as the process behind keeping it , if you would like to keep it Arizona DMV requires you to have repairs completed first, get an inspection through the DMV, then they will issue you a salvage title and we would need a copy of the salvage title before we can issue your payment. Also it would be your responsibility to have it removed from the salvage vendor statefarm would not cover that tow. Just some information for you to consider"

Miller M2 said:

should I get an attorney just for this particular matter since my current attorney is for bodily injuries only. ?

Click to expand...

You won't get an attorney on a contingency like for BI claims. You'll have to pay his hourly rate with a hefty retainer.

You won't get any of that back and no attorney is going to get you enough money for the truck to even pay his fees.

Miller M2 said:

So my vehicle is a 2001 5.4 v8 super crew Lariat edition. Bought it brand new and the claim adjuster has a value offer of $5100 they keep the truck or $4000 I keep the truck. $4000 will not be enough to fix it.

Click to expand...

That's right. And why it almost never makes sense to keep a total loss vehicle unless you are willing to spend the extra thousands to fix it.

How many miles on the truck?

You haven't said.

Is this your own insurance company or the other driver's insurance company?

If it's the other driver's insurance company, do you have Collision coverage on your policy?

Miller M2 said:

should I get an attorney just for this particular matter since my current attorney is for bodily injuries only. ?

Click to expand...

I would not recommend getting an attorney for a property damage matter where the amount in dispute is only a few thousand dollars and where you have no apparent basis to seek anything beyond what the insurer is offering.

adjusterjack said:

You won't get an attorney on a contingency like for BI claims. You'll have to pay his hourly rate with a hefty retainer.

You won't get any of that back and no attorney is going to get you enough money for the truck to even pay his fees.



That's right. And why it almost never makes sense to keep a total loss vehicle unless you are willing to spend the extra thousands to fix it.

How many miles on the truck?

You haven't said.

Is this your own insurance company or the other driver's insurance company?

If it's the other driver's insurance company, do you have Collision coverage on your policy?

Click to expand...

158k miles.
And I have 100/300/100 insurance coverage on my vehicle.

And this is my insurance telling me all this, I haven't dealt with the other parties insurance … is there other options?

You are simply not entitled to more than the actual cash value of the vehicle immediately prior to the accident.

Miller M2 said:

158k miles.
And I have 100/300/100 insurance coverage on my vehicle.

And this is my insurance telling me all this, I haven't dealt with the other parties insurance … is there other options?

Click to expand...

That's well under average miles for a 23 year old truck. ACV should be a lot higher than $5100. Not much by way of comparables for just 2001. Might need a spread of a year or two in either direction.


Submit your own set of comparables, understanding that dealer asking prices have to be adjusted downward by 10% or 15%.

If you don't do any better that way your next option with your own insurance company is to invoke the Appraisal provision of your policy.

APPRAISAL
A. If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the expenses of the appraisal and umpire equally.
B. We do not waive any of our rights under this policy by agreeing to an appraisal.

Then find an appraiser who can demonstrate successful outcomes against your insurance company. It'll cost you some, but considerably less than an attorney. It will also cost your insurance company money and time to handle the dispute.

adjusterjack said:

That's well under average miles for a 23 year old truck. ACV should be a lot higher than $5100. Not much by way of comparables for just 2001. Might need a spread of a year or two in either direction.

https://www.cargurus.com/Cars/inventorylisting/viewDetailsFilterViewInventoryListing.action?sourceContext=carGurusHomePageModel&entitySelectingHelper.selectedEntity=d341&zip=85032

Click to expand...

That link shows F-250s. The OPs vehicle was an F-150. I had to make a couple assumptions, but KBB shows the range for private party sales for the OPs vehicle at $4,146-7,283.

Miller M2 said:

So my vehicle is a 2001 5.4 v8 super crew Lariat edition

Click to expand...

You should check out Copart. They are all over the country (2 locations in Arizona). It's an online auction company for all types of vehicles and equipment. When an insurance company keeps a totaled vehicle, or a when a bank repossesses a vehicle, or dealers take trade-ins, they almost always send it to Copart for auction. It's a good place to get an idea of what the different values are for just about any vehicle in any condition.

A search for your vehicle (as described) brings up over 15,000 in their inventory. Some older than yours.

adjusterjack said:

That's well under average miles for a 23 year old truck. ACV should be a lot higher than $5100. Not much by way of comparables for just 2001. Might need a spread of a year or two in either direction.

https://www.cargurus.com/Cars/inventorylisting/viewDetailsFilterViewInventoryListing.action?sourceContext=carGurusHomePageModel&entitySelectingHelper.selectedEntity=d341&zip=85032

Submit your own set of comparables, understanding that dealer asking prices have to be adjusted downward by 10% or 15%.

If you don't do any better that way your next option with your own insurance company is to invoke the Appraisal provision of your policy.

APPRAISAL
A. If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the expenses of the appraisal and umpire equally.
B. We do not waive any of our rights under this policy by agreeing to an appraisal.

Then find an appraiser who can demonstrate successful outcomes against your insurance company. It'll cost you some, but considerably less than an attorney. It will also cost your insurance company money and time toyes

Click to expand...

adjusterjack said:

That's well under average miles for a 23 year old truck. ACV should be a lot higher than $5100. Not much by way of comparables for just 2001. Might need a spread of a year or two in either direction.

https://www.cargurus.com/Cars/inventorylisting/viewDetailsFilterViewInventoryListing.action?sourceContext=carGurusHomePageModel&entitySelectingHelper.selectedEntity=d341&zip=85032

Submit your own set of comparables, understanding that dealer asking prices have to be adjusted downward by 10% or 15%.

If you don't do any better that way your next option with your own insurance company is to invoke the Appraisal provision of your policy.

APPRAISAL
A. If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the expenses of the appraisal and umpire equally.
B. We do not waive any of our rights under this policy by agreeing to an appraisal.

Then find an appraiser who can demonstrate successful outcomes against your insurance company. It'll cost you some, but considerably less than an attorney. It will also cost your insurance company money and time to handle the dispute.

Click to expand...

Well an update lol. So I end up calling the adjuster and told her that I was declining the cash offer, I told her about some comparables, also the Accesories my vehicle has then she came back and offer a bit more just 100 bucks… then she said that if I don't agree with that offer the next step is the one you described. Now here is the thing if my vehicle value i believe is more because it has some Accesories that I added, (camper shell, etc) but don't have receipts after 24 years. the camper shell was busted on the accident. I did brakes 2 months prior the accident spent $1k (have receipts)and I believe that also can be something to add to the offer.

So if me getting my vehicle appraised is going to cost at least $1k. I might take the $5k and move on if not I'll try to push it towards a better cash offer.

The camper shell should be figured into the ACV of the truck. Was it?

Brakes are maintenance. They (and other maintenance and consumables like tires)) don't contribute to the ACV. Other than perhaps the difference between fair and good condition.

Other accessories? Name them.