How Auto Insurance Appraisers Determine The True Value Of Your Loss

If your vehicle is damaged, your insurance company will make an estimated claim with an adjuster to gauge the value of your loss sometimes, though you may feel that it is not the appropriate amount. If that is the case, you can enact the appraisal clause and hire an impartial appraiser to help out.

What Is An Auto Insurance Appraiser?

Insurance appraisers are impartial third parties that help settle disputes between the policyholder and their insurance company. If the policyholder enacts the appraisal clause, they can hire an auto insurance appraiser to calculate the actual cash value of their loss.

Accurate Car Value Is Important To An Insurance Company

A third-party insurance appraiser must help determine the value of your vehicle. The final amount is binding on all parties as part of the appraisal clause. That means the calculated amount is used for your new insurance claim once the appraisal process is finished.

Factors That Insurance Appraisers Use To Determine Car Value

When assessing the actual cash value of your vehicle, there are several things that insurance appraisers look at. These items may be similar to determining the market value of your car, but there are additional factors that may adjust it further.

Age Of The Car

The age of your vehicle is a factor in its appraisal. Once a car drives off the lot, its cost begins to depreciate. Depending on how old the vehicle is, this can affect its worth.

Vehicle Mileage

Another item used to evaluate a car’s worth is the mileage on the vehicle. The more mileage on the car, the more the parts have been used and moved around. This causes wear and the parts and makes the worth of the car even less.

Previous Accidents And Repairs

If your car has had any previous accidents or repairs, these are also taken into consideration in the estimate. The integrity of your car could have been compromised in a previous accident, reducing the worth of your car.

Depending on the quality and newness, parts that have been replaced in your car could slightly increase your vehicle’s worth.

Modifications Or Add-ons

The insurance appraiser will also look at any modifications or add-ons to the vehicle. If these were added aftermarket, they may help increase the price of your estimate. Some modifications that can increase the appraisal price include sound systems, lights, upgrades, cameras, cosmetic improvements, and more.

Important to note is that your modification and add-ons must be declared to your insurance company before any accidents. This will update your insurance policy and potentially increase your insurance cost. However, if undeclared, the modifications and add-ons will not be covered by insurance and will not be used in appraising the car’s worth.

Market Value Of Comparable Vehicles

One thing that insurance appraisers also look at is the re-sell value of your car. They may look at other vehicles recently sold in your area to help determine the worth of your car.

They will find cars comparable to yours and see their condition and how much they were sold for. This helps them know how much your car is worth in your local market.

Demand For The Specific Make and Model

Insurance appraisers will also look at the demand for your car’s specific make and model. If you have a specific vehicle with a high market demand, this can increase your appraisal amount. The color of your vehicle can also affect its demand and, therefore, its worth.

Vehicle Salvage Price

Another item that insurance appraisers look at to determine your loss is how much you could get when salvaging your vehicle. This is the amount that your damaged vehicle can get for being sold as is, whether sold to another person or for parts.

The Actual Cash Value Of Your Vehicle

Once all aspects of value have been calculated and weighed together, the appraiser can declare the total amount your vehicle is worth. In the event that the appraisal clause has been enacted, you and your insurance company will have appraisers who work separately.

Once they have their final findings, they will work together to come up with the binding amount. If they cannot reach a consensus, an umpire appraiser will be hired to settle the agreement whether the two appraisers or the umpire appraiser come to a final decision, which is the binding amount used for your insurance loss.

Finding A Trusted Insurance Appraiser

If you plan to use the appraisal clause, it’s important to start with a trusted insurance appraiser like KEH Consultants. They will meet with you and let you know if you have a case to pursue.

If they don’t find that your case is worthy to enact the appraisal clause, it means that you were given a correct amount. However, when they agree that you deserve more from your insurance company, they will work with you and help you through the appraisal process.

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