Guide

How to read a total-loss valuation report

The report is usually 20-something pages. Most people read the figure on page one and stop. The sections that determine that figure come later. Here is what each one is, and what to verify.

First: the full report

A settlement figure given by phone isn't the report. The full PDF shows the comparable vehicles, the condition ratings, and the options list. The adjuster can provide it on request.

Page 1: the summary

The first page shows a Base Vehicle Value (what the comparable vehicles indicate the vehicle was worth), an Adjusted Vehicle Value (after condition, refurbishments, and prior damage), then tax, title and registration fees, and a total. Two things to note:

• Confirm tax and fees are included. They are calculated on the insurer's side, usually from the ZIP code and plate details.
• Note the report reference number. If a revised report comes back later, a new number means it was re-run; the same number with additional comparables added means the value was not recalculated.

There is often a line such as "loss vehicle has 40% greater than average mileage" with a dollar figure beside it. That line is informational. The mileage adjustment that affects the value is applied vehicle by vehicle in the comparables section.

Vehicle information and equipment

This section describes the loss vehicle: year, make, model, trim, and a list of options and packages. Read it like a proofreader.

• Missing packages and options are the most common correction. Compare the list against the window sticker; a dealer can often reprint one from the VIN.
• Trim can be entered incorrectly, since vehicle data often comes from the repair shop. If the trim is wrong, every comparable vehicle is matched to the wrong trim.

Vehicle condition

Each part of the vehicle (seats, carpet, dashboard, headliner, paint, body, glass, trim, engine, transmission, front and rear tires) receives a rating. The names vary by insurer, but there are four levels:

The rating comes from the insurer's appraiser (in person or from photos). Most total-loss vehicles are rated Average on every line. If the vehicle was genuinely cleaner, pre-loss photos and service records are the documentation that supports a higher rating. If the vehicle could not be inspected (theft, fire), Average is a default rating rather than an inspection result, and condition can be rated from documentation instead.

Comparable vehicles: where the value comes from

Usually 2 to 12 recently listed vehicles similar to the loss vehicle, shown in blocks of three, each with mileage, distance, list price, and adjustments (options, mileage, condition) that produce an adjusted comparable value. The base value is an average of those, either a straight average or one weighted toward the closest matches, depending on the insurer. For each comparable, check:

1. Year and trim. A comparable that is a year newer or a trim higher is adjusted to match, but an exact match is the closest evidence of value.
2. Mileage. "Similar" is roughly ±15,000 miles on a newer vehicle (tighter if the loss vehicle is low-mileage), ±35,000 on a vehicle 8 to 13 years old, and wider on older vehicles. Comparables well outside that range rely on the mileage adjustment to bridge the gap.
3. Distance, last rather than first. Outside a few states with strict radius rules, a comparable a few hundred miles away is normal for a vehicle that is hard to find locally. The question is whether better-matched vehicles were available.
4. Asterisks. Comparables marked with * are shown for reference but not included in the average.
5. The condition adjustment on each comparable. The same amount is subtracted from every comparable, setting dealer-listed vehicles (treated as Above Average) down to the loss vehicle's rating. On a newer or higher-end vehicle it can be several thousand dollars. Base value plus that amount is roughly what dealers ask for a comparable vehicle.

Refurbishments and prior damage

Submitted receipts (tires, recently replaced worn parts, paint, engine or transmission work) appear here as additions; unrepaired prior damage appears as a deduction. Receipts are credited for what the work adds to resale value, not what it cost, so the amounts are usually modest.

Vehicle history

Near the back is a title and history check. Prior accidents and number of owners do not affect the valuation in either direction. If the report indicates salvage and the title is clean, raise it immediately: occasionally the current loss is reported before the valuation runs and the vehicle is flagged for the very accident being claimed. It is correctable and significant.

Common questions

Can the vehicle owner get a copy of the valuation report?

Yes. The adjuster can provide it as a PDF; most insurers do on request. A figure quoted by phone is not the report.

What does the asterisk next to a comparable vehicle mean?

It is shown on the report for reference but not included in the average. A revised report that recalculates the value carries a new report reference number.

Why is the same amount subtracted from every comparable vehicle for condition?

Comparable vehicles are dealer listings and are treated as Above Average (dealer retail) condition. The report subtracts a set amount from each to bring them to the loss vehicle's rating. If the loss vehicle was genuinely dealer-clean, documentation supporting a higher rating recovers part of that amount.

Does the 'greater than average mileage' line on page one affect the value?

No. It is informational. The mileage adjustment that affects the value is applied comparable by comparable, based on the difference between the loss vehicle's mileage and each comparable's.