If your vehicle has been damaged or declared a total loss, the first number that really matters is the amount your insurer says your car is worth. Click to learn more.
Get evidence to increase your payout
If your vehicle has been damaged or declared a total loss, the first number that really matters is the amount your insurer says your car is worth. Many people assume the insurance company’s valuation is automatically fair. It is not. Insurance companies exist to limit financial liability, and lower payouts benefit them, not you.
That is why an accurate auto appraisal is essential. When the number is wrong, your settlement is incorrect. When you have your own independent valuation data, you gain leverage.
This article breaks down how insurers calculate vehicle value, how low offers happen, and why a Vehicle Value Analysis Professional Report can help you dispute an unfair payout using verified market data.
When an insurance company appraises your car, it estimates the vehicle's actual cash value, which is what the vehicle was worth on the open market immediately before the accident. This process is based on fair market value, not replacement cost, original purchase price, or what you owe on your loan.
To calculate that number, insurers identify comparable vehicles for sale or that have recently been sold. Then they adjust the price based on mileage, model, trim, condition, and options. In theory, it should be straightforward. In reality, many valuations come back far lower than what the vehicle is actually worth.
Online valuation sites like KBB or Edmunds do not determine insurance payouts. Insurers use their own vendors and proprietary software, and those tools often undervalue vehicles when:
If the appraisal is wrong, the settlement is incorrect.
A lower valuation benefits the insurer because:
Insurance companies know that most owners accept whatever number appears on the settlement letter. They also know that once a check is deposited, the claim is closed.
This is where having your own verified car value report becomes powerful.
If you received a settlement offer and something feels wrong, look for these warning signs:
Any one of these indicates you should verify the number independently.
The insurer’s appraisal is not the final authority. It is an opinion supported by the data that they choose. You have the legal right to dispute the valuation and request reconsideration using your own data.
Courts, attorneys, and adjusters recognize independent market data as legitimate evidence. The key is using a valuation based on verified real transactions, not generic online estimates.
This is why thousands of drivers use a Vehicle Value Analysis Platinum Report.
The Vehicle Value Analysis Professional Report provides a full independent auto appraisal using real market data, not pricing guesses. It is built from more than 6.5 million verified transactions including:
It shows not only what the insurer claimed your car was worth, but also what the market said it was worth.
This is critical when negotiating because the report:
If your car was undervalued, this report gives you proof.
When a vehicle is totaled, the insurance company pays actual cash value minus any deductible. A low valuation can cost policyholders thousands of dollars.
Example:
A valuation report that proves your car is worth more can increase the payout and correct the final settlement.
A difference of just 5 to 10 percent on a mid-priced vehicle can be the difference between having enough money to replace your car or having to pay out of pocket.
Not every accident leads to a total loss. Sometimes the insurer chooses to repair the vehicle. But even repaired vehicles lose value due to accident history.
This is called diminished value.
Diminished value affects:
If a repaired car is worth less than its pre-accident value, you may be entitled to additional compensation. You cannot claim diminished value effectively without a fair valuation number.
Again, that requires independent appraisal data.
If you believe the offer is unfair, take these steps:
If the insurer refuses to reconsider, your next option is to:
Policyholders win disputes when they have data on their side.
Many law firms and claims adjusters use VVA because:
A claim backed by professional market data is much stronger than a claim backed by opinion.
A driver in Texas had a 2018 SUV with low mileage. The insurer valued it at $19,800. The owner believed it was too low and ordered a Vehicle Value Analysis Professional Report.
The VVA report showed:
The owner submitted the report and requested reconsideration. The insurer increased the payout by $2,200. One report covered its cost many times over.
This outcome is common because insurers respond to data, not complaints.
Insurance companies often try to conclude claims fast because:
A fast settlement is not always a fair settlement. The best protection is a correct valuation before you sign or accept payment.
If your car was damaged or totaled in an accident:
Your vehicle has value. A low appraisal takes that value away from you. A professional valuation gives you proof and negotiating power.
Once you cash the check, the claim is closed. Before you accept payment, verify the number.
Order your Vehicle Value Analysis Valuation Report here: https://www.vehiclevalueanalysis.com/
A few pages of verified market data can increase your payout, correct an unfair offer, and make sure you are not stuck covering the difference.
Do not hope the appraisal is fair. Prove it.
