GAP providers are exposed when total loss settlements are undervalued. Learn how Vehicle Value Analysis (VVA) provides market-based valuation reports to help close the valuation gap.
Get evidence to increase your payout
Gap Insurance is designed to protect consumers if their vehicle is totaled, but how can gap providers protect their own interests when the vehicle owner’s insurance carrier undervalues the claim? Erroneous “actual cash value” estimates often leave one party particularly exposed: the GAP provider, who typically has no meaningful opportunity to challenge the proposed settlement amount.
A low settlement offer could cost thousands. When a vehicle appraisal is performed, the under-indemnification on total losses averages $4,300.
Vehicle Value Experts is excited to announce the launch of Vehicle Value Analysis (VVA), offering market value reports that help GAP providers obtain accurate valuations on covered vehicles.
“When the vehicle owner’s insurer under-indemnifies a total loss, the Gap Provider suffers,” says Russ Parsons. VVA Valuation Tools help determine whether undervaluation has occurred and help guide when it makes sense to engage the insured borrower to invoke the Right of Appraisal.
For GAP providers, the challenge is often structural: the insured borrower typically must be involved to trigger policy mechanisms like appraisal, even when undervaluation shifts liability to the GAP carrier.
Common pain points include:
In the past, obtaining an accurate valuation required hiring a vehicle damage appraiser, which could cost nearly $1,000. With VVA’s tools, GAP providers can secure professional-grade valuation documentation in minutes for a fraction of that cost.
VVA’s tools also integrate with Claim Transparency Innovations’ Who-Owes-What Portal to help centralize claims, organize documentation and streamline communication across a portfolio.
Robert McDorman notes that the GAP provider is often “defenseless” when erroneous ACV estimates are used. He explains that by engaging both the vehicle owner and the GAP provider in the settlement process, it becomes possible to correctly indemnify the insured and reduce wrongful transfers of liability.
The release includes examples where accurate valuation reduced GAP provider liability dramatically, including:
McDorman also emphasizes that when appraisal reduces liability, eliminating the GAP provider’s exposure typically comes first — and any surplus can benefit the claimant, which helps incentivize borrower cooperation.
VVA’s advanced products provide documentation that GAP providers can use in negotiations with the customer’s insurance carrier. Providers can start with the Gold Report, and those seeking a basic valuation can access VVA’s Silver Report at no cost for a limited time.
Vehicle Value Analysis (VVA) provides an accurate vehicle valuation based on realmarket sales within minutes, offering transparent documentation that can be utilized in negotiations when selling a vehicle or during the insurance claims process following an accident. VVA specializes in providing valuation solutions for anyone who might need them – vehicle owners interested in knowing the true value of their vehicle, repair shops seeking to help their customers and fleet companies as well as attorneys representing vehicle owners and automotive lienholders, ensuring that every client receives accurate and complete compensation. VVA is an affiliate of Vehicle Value Experts.
Email: support@vehiclevalueanalysis.com
Phone: 817-898-8358
Tollfree: 800-869-2974
Website: vehiclevalueanalysis.com
Founded in 2017, Vehicle Value Experts is an automotive appraisal firm providing analytical, sophisticated, state-of-the-art, comprehensive, accurate, unbiased, and up-to-date data and information that all parties can rely upon as both factual and objective. Serving clients that require vehicle valuations for legal, lender, insurance and personal purposes, Vehicle Value Experts arms customers with the information and confidence needed to make informed decisions and safeguard their financial interests.
Email: appraisals@vehiclevalueexperts.com
Phone: 817-898-8227
Tollfree: 844-305-5030
Website: vehiclevalueexperts.com
