My vehicle is a “total loss.”; Are there any rules the insurance company must follow to calculate my vehicle’s “fair market value”?

A:

There is a statute (written law) and a regulation from the Connecticut Insurance Department that describes the process an insurance company must use when calculating fair market value in case of a total loss.  The rules, and other helpful information about car repairs, can be found on the Insurance Department’s website atwww.ct.gov/cid/lib/cid/faqsauto.pdf .
Basically, the insurance company must pay no less than the average of the vehicle’s retail value that is listed in the used car guide from the National Automobile Dealer’s Association, www.nadaguides.com and one other valuing service approved by the Insurance Commissioner.   These valuing services are:

 

1) Automobile Red Book-Prism Business Media, Inc. 9800 Metcalf Avenue, Overland Park, KS 66282-2901 (800) 654-6776 www.pricedigest.com
2) Mitchell International, Inc. 9889 Willow Creek Road, San Diego, CA 92131 (800) 854-7030 www.mitchell.com

 

3) CCC Information Services, Inc. 222 Merchandise Mart, Suite 444, Chicago, IL 60654-005 (800) 621-8070 www.cccpathways.com
4) Audatex North America, Inc. (formerly ADP) Bishop Ranch 1, 6111 Bollinger Canyon Road, Suite 200, San Ramon, CA 94583 (925) 866-1100 www.audatex.us/
5) AutoBid Services, LLC, 8900 Indian Creek Parkway, Suite 450 Shawnee Mission, KS 66210 (800) 875-2217 www.autobid.com

 

6) Vehicle Valuation Service 1 South 450 Summit Ave., Suite 380 Oakbrook Terrace, IL 60181 (888) 475-9975 www.v-v-s.com

 

To this average is added applicable Connecticut sales tax on this amount, less the “salvage value” as determined by the insurance company.  You can require the insurance company to document how it calculated your vehicle’s value.

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