GET THE MOST FOR YOUR TOTALLED CAR

🚗 Are You Being Shortchanged? How to Get the Highest ACV From Your Auto Insurance Carrier
When your car is totaled in an accident, the insurance payout can feel like a second hit. You expect a fair check—what your car was truly worth before the loss—but many drivers are shocked by how low the offer comes in.

Now, a federal judge is shining light on one reason why.
⚖️ State Farm Under Fire: The Lawsuit That Could Change Total-Loss Settlements
In a class-action lawsuit filed in federal court, State Farm has been accused of systematically undervaluing total loss claims. The core allegation? They allegedly used a “typical negotiation adjustment” (TNA) to reduce every vehicle’s valuation by 4% to 11%, regardless of its condition or market demand.

The court has now ordered State Farm to release documentation about how those values were calculated—potentially exposing a practice that could have shortchanged thousands of drivers.

So what does this mean for you?
It means you should never accept an insurance payout at face value without reviewing the details first.

 
💡 What Is ACV—and Why It Matters
ACV (Actual Cash Value) is what your insurer says your car was worth just before the accident. It's not the original purchase price or even what it would cost to replace it—it’s the market value minus depreciation.

But here's the problem: If insurers apply arbitrary markdowns (like the "TNA" in this lawsuit), your payout could be hundreds or thousands of dollars lower than it should be.

 
🧩 How to Maximize Your ACV Payout: 7 Essential Steps
1. Request the Valuation Report
Ask your adjuster for a copy of the valuation report from their third-party vendor (like CCC, Mitchell, or Audatex). Review:

The comparable vehicles listed
The mileage, condition, and trim level used
Any mysterious deductions (like TNA or "market adjustments")

2. Look for Red Flags
Watch out for:
Uniform reductions (like 6% off every comp vehicle)
Comps from out-of-area zip codes
Listings for lower trim levels or higher-mileage vehicles
If you see these, challenge them.

3. Gather Your Own Comparable Listings
Use sites like Kelley Blue Book, Edmunds, or AutoTrader to find local listings that match your car's:

• Year
• Make and model
• Trim
• Condition
• Mileage
• Take screenshots and save the URLs.

4. Document Your Vehicle's True Condition
Before an accident even happens, keep a record of:

• Maintenance and service (tires, brakes, oil changes)
• Any upgrades or add-ons
• Recent photos of the interior and exterior
• This helps prove your vehicle was worth more than a base model.

5. Challenge Low Valuations Respectfully
Once you have better comps and evidence, call or email your adjuster. A sample message:

“After reviewing your valuation and comparing it with local listings for similar vehicles, I believe my car’s ACV should be closer to $XX,XXX. I’ve attached documentation for your review.”
6. Ask About State-Specific Protections
For example, California banned the “typical negotiation adjustment” years ago, after a similar lawsuit. Other states may require insurers to itemize deductions or include taxes and fees in the payout.

7. Use the Appraisal Clause if Needed
If negotiations stall, check your policy for an appraisal clause. This allows you to hire a third-party appraiser, and if your adjuster doesn’t agree, an independent umpire decides the value.

 
🛑 Don’t Let a Lowball Offer Slide
If you’ve had a vehicle totaled recently—or even in the past few years—you may have accepted less than your car was truly worth. The current lawsuit against State Farm shows how important it is to review the numbers and advocate for yourself.

 
👩‍💼 Need Help With a Total Loss Claim?
As an insurance professional, I can guide you through:

• Understanding your ACV valuation
• Compiling better comps
• Navigating negotiations or appraisals
• Don’t settle for less than what you deserve. If you’re facing a total loss situation—or just want to be better prepared—reach out today.

 
Claudia Satori
Catino Insurance Agency
📞 805-590-7588
📧 [email protected]
🌐 www.catinoinsurance.com
CA License #0A93653