How Do I Dispute an Insurance Company’s Valuation of My Car?

After an accident, the insurance company may declare your car a total loss and offer you a payout. But what if the number they give you feels way too low? Can you fight it? The answer is yes — you can dispute an insurance company’s valuation of your car.

Here’s how the process works and what steps you can take.

1. How Insurers Value Your Car

Insurance companies usually calculate value using:

• Actual Cash Value (ACV): Your car’s market value before the accident, based on age, mileage, and condition.

• Comparable Sales: Prices of similar vehicles recently sold in your area.

• Adjustments: For wear, upgrades, or prior damage.

But these valuations don’t always reflect your car’s true worth.

2. Why Valuations May Feel Low

Common issues include:

• Insurers relying on wholesale auction prices, not retail values.

• Failing to account for upgrades (new tires, stereo systems, recent repairs).

• Using comps from outside your local market.

• Overestimating depreciation.

3. Steps to Dispute a Valuation

If you disagree with the insurer’s number, you can:

1. Request a copy of their valuation report.

2. Gather evidence of your car’s value, such as:

   • Listings of similar vehicles for sale in your area

   • Maintenance and upgrade records

   • Independent appraisals

3. Submit this documentation to the insurance company and request a review.

4. Independent Appraisal or Arbitration

If negotiations stall, you may:

• Hire an independent appraiser to provide an unbiased value.

• Enter appraisal arbitration (if your policy allows), where each side presents an appraisal and a neutral umpire decides.

5. Tips for Strengthening Your Case

• Be polite but firm with the insurer.

• Provide specific comps, not just general complaints.

• Keep communication in writing when possible.

• Don’t settle until you’re satisfied with the payout or out of options.

The Bottom Line

You don’t have to accept the insurance company’s first valuation if it seems unfair. With solid evidence, you can dispute their number and push for a higher payout.

👉 If you’ve been in a car accident and believe your insurer undervalued your car, fill out our quick questionnaire. FindLawFast will connect you with the guidance you need.

Disclaimer: This article is for general informational purposes only and should not be taken as legal or financial advice. Disputing valuations depends on state laws, policy terms, and individual circumstances. Always consult a qualified professional for your specific case.