Reply to Car Insurance Company Lowballing Payment for Totaled Car

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I've gotten more for providing receipts for recent repairs and improvements but also for making sure they were pricing the correct package and options for my car. What data can you provide on condition for your vehicle vs. their comps?

Also do you have data that the mileage adjustment shouldn't be linear? What assumptions do KBB and NADA use? You should be able to determine whether they think it's linear or not. if they use linear, or you find prices for comps in the real world change linearly, then I would present that data to them.

They want to get rid of you/close the claim, so the more of a pain you are to them, the more you might get.

I assume they've added taxes, tags, registration already?[/quote]

The mileage adjustment is currently not linear. They cars with lower mileage than my car are getting a larger adjustment per mile than the car with more mileage.  For the the car with more mileage they are only adding 4.8 cents per mile to adjust the comparable cars value. The marginal rate of adjustment per mile is increasing the lower the mileage on the car. So the mileage adjustment (for cars with less mileage) starts around 5.7 cents per mille, but the marginal adjustment increases to 11.4 cents per mile for the car with the lowest mileage. Eg. For the Car with 8000 more miles they are providing an adjustment of +$381 for the comparable value. The car with 9,100 less miles is getting and adjustment of -$525 for comparable value. The comparable car with 27,050 less miles is getting an adjustment of -$2251. [/quote]

I believe you that the the insurance company isn't using a linear mileage assumption. What I'm asking is what proof you have that it shouldn't be? What relationships are you seeing elsewhere? You have my anecdote from 2016, but that was a different time and a really high mileage car. I might expect a non-linear relationship at the lower end because those are the cars people want. There probably wouldn't have been much demand for my car with 225k miles or the ones with 1xxk, and there are even plenty of people who wouldn't purchase a car with 81k miles, which was the lowest comp for mine.

So linear may have been a better assumption in my case than if your car has 35k or something. The market may price in people getting nervous at thresholds like 36k or wherever warranties end now and 50k or other mileage people really want to stay under when buying used. If you want to fight it, I think you need to give some proof that some source is showing a linear relationship.[/quote]

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