I need help with my auto claim.
State Farm insurance says my car is a total loss because they think the repair costs are 79% of its value. They based this on a virtual estimate and the Actual Cash Value they gave me.
But a body shop I visited in person said the repair cost is only 64% of the car’s value. I don’t understand why State Farm is still saying it’s a total loss.
How can I argue for a higher Actual Cash Value for my car and show that repairs can be done for less money? I want to prevent my car from being declared a salvage.
My car is a specific year with upgrades from older BMW models. I’m worried State Farm is comparing it to older models, and the unique color combination makes it hard to find similar cars with the same year and mileage.
I appreciate any advice. Thank you.
9 Likes
Which State?
The state determines the total loss percentage, not the insurance company. If the loss exceeds this amount, the insurance company is required by law to declare it a total loss.
However, an insurance company can decide to total it for a lesser amount.
1 Like
You’d probably prefer it to be totaled at this point. You really wouldn’t want to drive that car after it’s been “repaired.”
1 Like
I prefer to have it repaired. The damage is quite minor, and given the car’s rarity, finding another one in good condition is nearly impossible.
2 Likes
No, you wouldn’t. Just accept the victory.
I experienced something similar. Geico wanted to declare my car a total loss after I hit something on the road that damaged my radiator. Their estimate included all sorts of ridiculous items, like painting the underside of my car (!!!). I decided to close the claim and just paid for the radiator replacement myself, which only cost a few hundred dollars, and it was as good as new (minus the lack of that unnecessary paint job, lol). You didn’t mention the specific dollar amounts, but you might consider doing something similar.
1 Like
Did your car end up getting salvaged? I asked if I could just reverse the decision and keep the first check they issued, but they said it has to be repaired according to “standards” and wouldn’t insure it since they classified it as a total loss.
Did you use any specific wording when you made that request? And was the total loss status removed from your records?
1 Like
Hi there; I’m not very experienced, so I didn’t phrase it in a specific way.
I simply informed them that I intended to handle the repair myself and asked if I could close the claim. They confirmed that I could. I asked, “So it won’t be labeled as totaled anymore?” They assured me it wouldn’t, and it didn’t. I drove the car normally for years after that (until a distracted driver hit me at 45 miles an hour, which resulted in a legitimate total loss). The vehicle wasn’t under a salvage title or anything like that; it was as if the claim had never happened.
Given how close the percentage is, I would be concerned that a supplement could push it over the edge to a total loss. Companies typically prefer not to cover repair costs only for the vehicle to be deemed a total loss afterward due to a supplement. Although there are thresholds in place, insurance companies have the discretion to total a vehicle even if it falls below those limits.
Locate several cars of the same make and model from the same year, ideally with similar mileage. Aim to find around 5 to 10 examples, if possible. Ideally, these cars should be priced higher than the offer they are making for your vehicle. This information can serve as leverage to demonstrate that you wouldn’t be able to buy a comparable car from that year and mileage for the amount they are offering.
The percentage isn’t always the determining factor. For instance, if your car is valued at $20k, the insurance company may decide to total it if it makes financial sense. If the repair costs amount to $15k (75% of the value), they might obtain a quote from Copart or IAA to sell the car for $6k. Even if the repair costs are $14k, they would still consider it a total loss because they could pay you $20k to take ownership and then sell it for $6k, effectively keeping their costs at $14k. Additionally, significant repairs often take longer, and by totaling the car, they can expedite the process of getting you out of the rental vehicle, ultimately saving more money. Any repair shop that initially estimates $17k will likely provide a supplement later, which you must also factor in. Total losses are generally simpler to manage, resolved quickly, and free you from any future issues with the car after repairs.
Source - auto adjuster for one of the top five auto insurers in the US.
1 Like
Thank you for the information; I really appreciate it.
I received a breakdown of costs and the CCC report after my inquiry. According to Estimate 1 and Supplement S01, I was at 49% repairs of the Actual Cash Value (ACV). However, they added $1,700 for a “medium supplement of anticipated costs” and mentioned an additional supplement for “teardown and diagnostics.” These anticipated costs put me over the 75% threshold by about $250.
I’m surprised they haven’t inspected the car in person yet are projecting significant costs for supplements when the required repairs are minimal.
I requested a detailed explanation from my claim handler regarding the $1,700 anticipated costs, but I was told, “I don’t have that.”
Furthermore, the CCC evaluation report inaccurately represents my vehicle in several ways. For example, it lists my car as a manual when it is an automatic, omits several options I have, and inaccurately compares it with vehicles that have different packages and options. This has led to a lower valuation of my car’s ACV.
Additionally, the report includes unnecessary repairs, such as removing a wheel fender liner despite no nearby damage, and interior components when all the minor damages are on the exterior.
Some damages that initially appeared as scuffs were actually built-up dirt and grime that washed away with a car wash. Is it possible to have these unnecessary repairs removed from the estimate since they were resolved with cleaning?
My goal is to ensure they accurately evaluate my car and the repairs needed, as it is clear that it should not be deemed a total loss. I would greatly appreciate any insights or advice on the next steps I should take. Thank you.
1 Like
It’s difficult to provide an answer since I haven’t seen any photos or an estimate. You might consider withdrawing the claim and disregarding that initial check. If you accept the first check, you are officially filing the claim, which would categorize it as a total loss. While all insurance companies have adjusters available, many are shifting to virtual assessments, so insisting on an in-person visit likely won’t be productive. Based on my experience, I’ve seen customers underestimate the extent of the damage, which can often be significant. Additionally, since it’s a BMW, there are likely several calibrations required, which can add up to hundreds of dollars in costs. BMW parts can be extremely pricey, so estimating around $1,700 may not be unreasonable, especially considering some parts, like headlights, can exceed $6,000.
Request the comparable vehicles they are using to determine the car’s value. Typically, they send the vehicle’s specifications to an external company that maintains a database of vehicle sales prices, along with details about mileage, condition, and additional features. You may receive a valuation report indicating whether it has lower or higher mileage than expected, features like upgraded speakers, poorer paint condition than anticipated, or damage such as a 3-inch hole in the seat (these are just examples). They will assign a monetary value to each aspect. You can then assess whether you concur with their assessments of the car’s condition and available options.
You don’t understand: If the insurance company pays you 75% for repairs, they are losing 75%. If they declare the car a total loss and pay you its value, they can then sell it on Copart for 30-50%, allowing them to profit.
1 Like
If the vehicle is totaled, they will owe 100% of the Actual Cash Value (minus the deductible). Additionally, they will not receive 50% of the vehicle’s cost from Copart for salvage.
Just take the money and purchase a better, more reliable car; it’s what I did when my Honda was totaled.
The rarity of a color doesn’t actually affect its value; it only matters to buyers.