Filed under auto insurance claims questions.
What do insurance companies base car value for insurance claims?
The insurance company’s car claims adjuster sees the car as an object and does not take into consider personal value. His job is to determine market value. This forms part of the base rate. The usual process is to compare vehicles of the same model and year, usually 2 or 3, to help evaluate the base rate.
The claims adjuster will normally quote a base value on the lower end for 2 main reasons:
- The policy holder will dispute the amount and try to negotiate for a higher figure which gives him some allowance to work with and
- The car may be only good for parts