AboutClaims Guy Expertise I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer......I can answer questions related to any aspect of Automobile insurance claims and coverages. I can provide an inside look at how insurers operate. I always treat my customers fairly and want to help make sure you are treated fairly. However, please keep in mind that being treated fairly according to the law does not guarantee that you will get what you want. I can also answer some questions regarding Homeowner's and other types of insurance claims. I have handled all types of auto insurance claims and coverages. I am NOT an automotive repair expert but can give advice re how insurers handle complex repair issues. Please keep in mind that every state has its own set of laws pertaining to rules of the road, liability, and insurance. No one is an expert on every state. I am most familiar with laws in Maryland, DC, West Virginia, and Virginia, but will attempt to answer questions for other states.
Experience I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer.
Education/Credentials I have a B.S. in Finance and have completed the AIC and CPCU designations.
Question I was recently in a car accident that resulted in the front end of my car significantly damaged, the responding officer was of the opinion it was probably a total loss. My insurance adjuster will not be available till Tuesday. Can you tell me what the adjuster uses to come up with the payoff amount? Are there any other factors involved such as mileage?
Answer Hi Laura,
First, the adjuster will write a repair estimate to see if it should be repaired. If it is economical to repair, they will; if not, they will call it a total loss. Normally this occurs if the repair estimate reaches about 75% of the actual cash value.
If a total loss, they will offer you the actual cash value. This is the retail value immediately before the collision. This is what you could have sold the car for to a consumer before the collision.
Each company comes to their value their own way. Most use some third party vendor to assist them, like NADA or something similar. They will consider the make, model, age, mileage, condition, options and anything else that will affect the value.
