Robert's Blog

What is Total Loss?

In the event you should have the unfortunate experience to be involved in an accident whereas your vehicle is Totaled Out (a state whereas the Insurance Company has deemed the collision repair will exceed the Fair Market Value of the Vehicle), allow Vehicle Value Experts to analyze the CCC ONE and/or Mitchell Market Valuation Report (all vehicle information and market comparable's of your vehicle), Collision Estimate and Final Settlement Offer prior to Settlement.

Vehicle Value Experts has documented and successfully increased the Fair Market Value Settlement by an average of 22% once employed. 

Germania Insurance

The 1st week of April I was contacted by a Client whom had been in a multi vehicle accident. This Client was driving a 2011 Honda CRV that she bought New. She told me the accident was not her fault and the at fault party had AllState Insurance and AllState had taken responsibility for the Liability. At this time she said she was not sure of the actual damage,she asked me to perform an evaluation on the CRV at the Body Shop. I agreed to do so. The Client told me the CRV was located at Mike Smith Body Shop in Beaumont. I went the next day and performed the evaluation on the CRV and issued the Client a Fair Market Value Appraisal on the CRV as to the Retail Value prior to the accident.

On Friday April 10th my Client called me back and informed me that AllState had not helped her in a timely manner and she had elected to file a Claim under her Germania Policy and that Germania had Totaled Out Her CRV. My Client asked me what would happen next? I told her more than likely Germania would call and advise her of a Fair Market Value Amount that would more than likely be ridiculous. I advised her upon getting this Fair Market Value Settlement amount to advise Germania she would like the Market Valuation Report that was comprised of the Comparison Vehicles used to arrive at said amount.

On or about Monday April 13th my Client emailed me the Market Valuation Report provided them by Germania. Germania had contracted with CCC ONE to perform the Market Valuation Report. CCC ONE had arrived at a Base Vehicle Value on the CRV of $17,500.00.

Upon reviewing the CCC ONE Market Valuation Report they had in fact used several high mileage CRV's and several CRV's with Bad CarFax Reports to arrive at their Base Vehicle Value of  $17,500.00. I wrote a full analysis of the CCC ONE Report and upon completion determined the Fair Market Retail Value to be $21,900.00 on the CRV. I issued my analysis to the Client upon completion on Monday April 27th. The next day my Client advised me they had placed Germania on Notice and wanted to in act the Appraisal Clause in the Policy and they each hire an Independent Appraiser to arrive at a Fair Market Value. 

On or about Wednesday April 29th I was contacted by the Independent Appraiser Germania hired. As required we agreed to choose from one of the three Umpires listed below to issue a Ruling should he and I not be able to come to an amicable Fair Settlement Value.

Mr. John Fullerton

Fullerton Appraisal Services

607 Shady Hollow Drive

Georgetown, Texas 78628

512-864-1353

 

Mr. Wayne Marsden

Auto Damage Appraisers of Houston

8191 Southwest Fwy., Suite 104

Houston, Texas 77074

713-988-9294

 

Mr. Larry Hayes

Southeast Texas Damage Appraisers

29181 East Lake Drive

Hempstead, Texas 77445

281-794-8390

 

 We agreed on Wednesday the 29th to appoint Mr. John Fullerton as our Umpire in the event we could not come to a Fair Market Value Settlement. I agreed to overnight via FedEx him a copy of the Analysis of the CCC ONE Market Valuation Report. The Appraiser informed me he would be back in contact with me after he received the Analysis and had a chance to review it as well.

 

Upon the Germania Appraiser receiving and reviewing my analysis on are about Thursday April 30th he called me and agreed 100% the CCC ONE Base Vehicle Value of $17,500.00 for the CRV was not correct.

 

Over the next several days the Germania Appraiser and I spoke several times and exchanged information on the CRV the subject of the analysis and other comparable CRV'S. I spoke with my Client and advised her the Germania Appraiser was wanting to access her CRV at a Fair Market Value of $19,700.00. I informed my Client if the Germania Appraiser would not move on his professional opinion of $19,700.00 and we would not move on our professional opinion of  $21,900.00 we would have no choice but to hire the Umpire Mr. Fullerton to render a decision. After discussing the extra expense to hire the Umpire my Client agreed she would be happy with the $19,700.00.  It was my professional opinion my Clients 2011 CRV was worth $21,900.00. However after calculating the added expense to hire Mr. Fullerton and my added expense to write the overview needed to send Mr. Fullerton, I felt it was in the best interest of all parties to agree to a Fair Market Settlement Value of $19,700.00. On Tuesday May 5th we both agreed on a Fair Market Value Settlement of $19,700.00.

2003 Saturn Vue

This past week a Local Body Shop referred me a customer whom had Progressive Insurance. Progressive Insurance had deemed this customers Saturn a Total Loss and offered her $4,265.91. This customer informed me she was not happy with the $4,265.91 Progressive had offered her, she told me she had spent over $5,500.00 this past year in replacing the Transmission and A/C and had meticulously maintained her car. I asked her if she had the receipts outlining this and she said she did. I asked her if she had informed Progressive as to the extensive repairs and maintenance she had done on her vehicle, she replied she had and they told her it did not help the value. I asked her to call Progressive and ask them to send her The Market Evaluation Report on the Saturn and email it to me.

Upon receiving The Market Evaluation Report I discovered it was performed by J.D. Power McHill Financial Mitchell for Progressive. Mitchell had in fact came up with a Fair Market Value of $4,265.91. After I reviewed in detail the J.D. Power McGraw Hill Financial, Mitchell Vehicle Valuation Report she provided me referenced above. The Report attempted  to outline and support a Market Value Replacement on the above referenced Saturn of $4,265.91. On each of the unsold comparable vehicles Mitchell deducted an average of 11.50 percent for Projected Sold Adjustment. There is no Scientific Data to support said Projected Sold Adjustment computation by Mitchell and is merely a scheme to decrease Total Loss Compensation Paid to Total Loss Victims.

After analyzing The Mitchell Report and outlining the shortcomings that lead to the grossly under rated  Market Value of $4,265.91, I performed my own Market Evaluation Report with factual comparison of 2003 Saturn Vue's and taking into account all the repairs, maintenance and CarFax I was able to arrive at a Fair Market Value of $5,900.00. 

I emailed my client the finished True Market Evaluation Report showing the $5,900.00. Upon us talking, she asked me what should she do? I advised her to place Progressive on Notice she had hired an Independent Appraiser to determine the True Value of her 2003 Saturn Vue and inform them she would like in enact the Appraisal Clause in the Policy.

Progressive hired an Independent Appraiser to place a 3rd Party Fair Market Value on the 2003 Saturn Vue. The Rules are Clear as to the Duty of both Appraisers during this process, they are to communicate and attempt to come together with a Fair Market Value. In the event they cannot an Umpire is hired to make a decision as to the Fair Market Value of the Vehicle based on the reports from the two Appraisers.

Yesterday afternoon the Appraiser Progressive hired phoned me to discuss the claim, shortly into our conversation over the condition of the 2003 Saturn I found the Gentleman to be very knowledgable of the facts at hand. The Progressive Appraiser informed me his study and research indicated the Fair Market Value of the 2003 Saturn Vue was $4,900.00.

After he and I both exchanged our views and opinions we mutually agreed on a Fair Market Value of $5,417.69 of which we both entered into an Arbitration Agreement evidencing such.

 

Hartford Insurance 2001 Ford F-150 Total Loss Claim

In early January of 2015 a client contacted me to review his total loss claim on a 2001 Ford F-150. The client was not at fault and was trying to settle with the party at faults liability carrier Hartford Insurance. Upon review of the J.D. Power/McGraw Hill Financial Mitchell Vehicle Valuation Report used by Hartford Insurance as a tool to Devalue Claim Payouts several key errors were uncovered that had lead to a less than favorible Fair Market Value Settlement by Hartford. When the client 1st brought me his claim information Hartford was attempting to get him to settle the claim on his 2001 Ford F-150 for $5,757.58. Upon a full review of the J.D. Power/McGraw Hill Financial Mitchell Vehicle Valuation Report and outlining the errors and/or short comings in said Mitchell Vehicle Valuation Report my client was able to settle for $7,800.00.

Time and Time again I see this exact same issue as listed above were as The Insurance Company uses these Market Evaluation Reports such as J.D. Power/McGraw Hill Financial Mitchell Valuation Report to Devalue Claim Settlements and Cheat Consumers out of there rightful Fair Market Settlement Due Them.