If you’ve been involved in a car accident and your vehicle is declared a total loss, one of the first steps you’ll take is to reach out to your insurance company. While you may assume your insurance company has your best interests at heart, it’s important to remember that they’re a business with a bottom line to protect. This means that their first offer may not reflect the true value of your vehicle, leaving you with less compensation than you deserve.
At Prime Property Law, we’ve seen it time and time again—insurance companies often try to settle quickly and for much less than what you’re entitled to. Here’s why you should not accept the first offer and why contesting a CCC One report could help you recover more.
The First Offer Is Often Too Low
When you have full coverage auto insurance, including collision, comprehensive, and liability, your policy should cover the fair market value of your car at the time of the loss. However, insurance companies are not always upfront with the amount they’re willing to offer.
The first offer from your insurance company is often based on their initial assessment, and it’s typically lower than what your car is actually worth. This initial estimate is often generated by a formula, using factors like the car’s age, make, model, and mileage, but it doesn’t always account for the unique qualities of your car, such as aftermarket parts, condition, or market trends.
Why You Should Contest the CCC One Report
If the insurance company provides you with a CCC One report as part of their valuation, you should strongly consider contesting it. CCC One is an appraisal tool commonly used by insurance companies to calculate a vehicle’s value after an accident. While the report is a useful starting point, it doesn’t always accurately reflect the fair market value of your vehicle.
Here’s why:
- Underestimation of Vehicle Value: The CCC One report may not reflect any upgrades or improvements you’ve made to the car, like new tires, a custom sound system, or other enhancements that could increase its value.
- Regional Market Variations: The report may not factor in regional market conditions, where a similar car in your area might command a higher price due to local demand.
- Depreciation vs. Actual Value: The report may place too much emphasis on depreciation without accounting for how well-maintained your vehicle was prior to the accident.
Contesting the Report
To ensure you receive fair compensation for your vehicle, you should contest the CCC One report if you feel it doesn’t accurately reflect your car’s value. Here are a few steps to take:
- Gather Supporting Evidence: Compile maintenance records, receipts for upgrades, and any other documents that show your vehicle was in good condition.
- Request a Reassessment: Contact your insurance adjuster and ask for a re-evaluation of your car’s value, presenting the evidence you’ve gathered.
- Provide Comparables: Find similar cars in your area for sale to demonstrate that your car should be valued higher based on local market conditions.
You Have Options
If you’ve already received a settlement offer and it doesn’t seem fair, don’t simply accept it. As a policyholder, you have legal rights, and your insurance company is required to offer you a fair settlement. If they fail to do so, you may be entitled to pursue an action under your policy.
At Prime Property Law, we focus on auto damage claims, including total loss and diminished value cases. Our team can help you review your settlement offer and the CCC One report, and we’ll fight for the compensation you deserve.
Conclusion
Don’t settle for the first offer from your insurance company when your vehicle is declared a total loss. Insurance companies may try to undervalue your car to save money, but with the right knowledge and assistance, you can make sure you’re fairly compensated. If you receive a CCC One report, contest it if you feel your vehicle’s value is underestimated. Reach out to Prime Property Law for expert guidance on how to handle your total loss claim and ensure you get the settlement you deserve.
Contact Prime Property Law today to schedule a consultation and discuss your total loss claim.