How to read an insurer’s valuation report

Get the whole report first

An offer letter or a phone call gives you one number. The valuation report shows how the number was built. Ask the adjuster for the complete report, including every page of comparable vehicles and adjustments. Insurers commonly use third-party valuation vendors, and the layout differs by vendor, but the sections below appear in most reports under one name or another.

1. Vehicle description

This section lists the year, make, model, trim, engine, drivetrain, mileage and a list of equipment, usually decoded from the VIN. Check each line against your window sticker, build sheet or purchase paperwork.

• The trim level is the one you own, not the base model.
• Factory packages appear by name.
• The mileage matches the odometer at the time of the loss.
• Dealer-installed and aftermarket equipment is listed if you have receipts for it.

2. Base value and comparable vehicles

The base value is the report’s starting figure for a vehicle like yours before any adjustment for your vehicle’s own condition. Find out how it was produced. In most reports it is derived from the comparable vehicles, so a problem with the comparables is a problem with the base value.

Each comparable should show a year, trim, mileage, price, location, and whether the price is an asking price or a sale price. Then come the adjustments made to each one to bring it in line with your vehicle. Look at how many comparables there are, how far away they are, and whether you can find them yourself. Our guide to disputing comparables and condition adjustments covers what to do when they do not hold up.

3. Condition adjustments

Reports rate parts of the vehicle, such as paint, body, interior, tires and mechanical condition, and apply a dollar adjustment for each rating. Two questions matter here: who inspected the vehicle, and what the rating is measured against. A deduction should point to something specific about your vehicle. If the report rates your vehicle below the comparables, it should say what condition the comparables were assumed to be in.

4. Options, prior damage and other adjustments

Look for additions for equipment and recent work, and for deductions for prior damage. Compare them with your records:

5. Taxes, fees and the bottom line

The last page normally adds sales tax and title or registration fees where the state requires them, then subtracts your deductible. Whether tax and fees are owed, and how they are calculated, depends on your state. Our page on total loss settlements explains what the payment is made of.

Check the arithmetic as well. Add the adjustments yourself and confirm that the total on the last page matches the offer you were given.

What to do with what you find

Write each error down with the page number and the document that proves it. A short, specific list is easier for an adjuster to act on than a general objection. If the list is long, or the errors are in the comparables themselves, an independent total loss appraisal values the vehicle from the start instead of correcting the insurer’s report line by line. Unfamiliar words in the report are defined in the valuation terms glossary, and the pre-acceptance checklist turns this walk-through into a list you can tick off.