Overview:
A total loss dispute occurs when a car owner disagrees with USAA Insurance Company’s valuation of their total loss vehicle.
Receiving adequate compensation for your total loss vehicle from USAA should be a stress-free experience. In addition to the many auto valuation guidebooks available, other vehicles equivalent to yours are easily found for sale through online research. Your appraiser’s knowledge of how restorations and modifications affect car values is also important. There is a saying: “Prepare for a trial to avoid a trial.” The independent appraiser that you choose has to produce legitimate, probative evidence and act as your advocate throughout claim proceedings.
Before making your payment, please email the insurance company CCC or other work sheet to contact@stlucieappraisal.net
USAA uses outside vendors such as CCC Information Systems which allows them to input your automobile’s information such as year, make, model, mileage, engine, options, etc. There is also a section that enables them to make additions or subtractions for mileage, optional equipment, old damage and conditioning issues. Then CCC will endeavor to locate comparable vehicle asking prices to determine how much your car is worth.
CCC uses computerized valuation methods. In every total loss dispute in which our office has assisted USAA’s insureds, we have discovered that the values generated by the CCC system are consistently on the low end of the value spectrum. If you suspect that USAA has undervalued your vehicle, car owners have the option to invoke the Appraisal Clause.
The Appraisal Clause can be utilized when there is a dispute over the value of a motor vehicle. This typically allows either the insurance company or the vehicle owner to demand an independent review from their respective auto appraisers.
The independent appraisal company that USAA chooses to represent them in Appraisal Clause negotiations is central to what happens next. Your claim will either be assigned to a fair-minded appraisal company or you may get stuck with a lemon. Our experiences with The Company have been well-documented by comments from our clients that appear in our READ OUR REVIEWS page. Some examples of inadequacies discovered in their independent appraiser’s reports are the use of incorrect models, use of vehicles with previous repair histories, cars and trucks with rusted-out frames as well as vehicles found to be either misquoted or non-existent. A pervasive issue with USAA is that, when confronted with mistakes made by their independent appraisers, they made no attempt to have them rectified.
Here are some examples:
1999 Ford F350 totaled. Initial offer from USAA was $7,323.25. USAA hired an independent appraisal firm to represent them. St. Lucie Appraisal estimated the value of the truck at $17,744.62. Their independent appraiser’s comps were for smaller Crew Cabs vs. the insured’s Super Cab. An umpire awarded a settlement of $15,200.00.
2018 Maserati totaled. Initial offer from USAA was $33,784.08. USAA hired an independent appraisal firm to represent them. St. Lucie Appraisal estimated the value of the car at $46,893.35. but after St. Lucie found errors in their appraisal, USAA ended up paying $43,500.00.
2016 Jeep Unlimited Rubicon Hard Rock totaled. Initial offer from USAA was $31,948.00. USAA hired an independent appraisal firm to represent them. St. Lucie Appraisal estimated the value of the car at $39,905.45. It was discovered that the vehicle configuration including options, specifically the Hard Rock package were not appropriately considered by their independent appraiser. The claim was eventually settled by an umpire for $37,500.00.
2011 BMW 335D M-Sport totaled. Initial offer from USAA was $11,862.00. USAA hired an independent appraisal firm to represent them. St. Lucie Appraisal estimated the value of the car at $17,241.67. The claim was settled for $14,250.00.
2016 Mercedes-Benz GLE550 4Matic Hybrid totaled. Initial offer from USAA was $29,686.00. USAA hired an independent appraisal firm to represent them. St. Lucie Appraisal estimated the value of the SUV at $40,562.00. The claim was settled for $39,443.28.
1971 Chevrolet Corvette Convertible totaled. Initial offer from USAA was $43,065.00. USAA hired an independent appraisal firm to represent them. St. Lucie Appraisal estimated the value of the car at $54,985.00. The claim was settled for $49,000.00.
USAA is purported to be a fine insurance company. Many insurers excel in some areas while other segments of their businesses lag behind. Anyone who seeks out reviews of large insurance company auto claims departments will surely find glowing endorsements alongside some inconvenient truths learned at the most inopportune times – when claims arise. This article is a prompt to perform your due diligence when assessing which insurer gets your business.
From Consumer Affairs:
Ed of Gladeville, TN
Verified Reviewer
Original review: June 5, 2021
USAA is as great as they say… until there is a claim. I’ve been with USAA for 42-years starting out as a young Army officer. And, I’ve had only 2 claims in that period of time; both comprehensive and non-collision. Never had a wreck. USAA is great when you’re moving about the world, but once you are settled in a community you need an in-person agent to deal with, and that’s what you don’t have with USAA. I have never met anyone with USAA except by phone, email or FEDEX. The first claim was 20 years ago, the second and last claim was over a month ago. In both cases, it took nearly a month for USAA to get back with me, and even took me making calls to check on claim progress to get a response. Worse, USAA contracts with third-party servicers to handle much of the claims process, and the red tape is excessive. The third-party has me running around getting notarized signatures, finding a long-misplaced title to a car.
There are better options than having to deal long distance with a company that is working for your insurance company and not having an agent you can meet with. It’s really not worth it to have insurance, have to file a claim, and have so much work pushed back on your head. So, after all these decades I’m going to get local insurance now. The ongoing thesis packet I’m supposed to complete and FEDEX back to some company I never heard of in order to collect on my claim… well, just ain’t worth it. I’ll let USAA keep the check as part of the starting over process.
Car owners should be aware of their state’s protections against Unfair Claims Practices by insurance companies. Attempting to settle a claim for less than the amount to which you are entitled by reference to written or printed advertising material accompanying or made part of an application, failing to settle claims promptly, failing to provide promptly a reasonable explanation of the basis relied on in the insurance policy, in relation to the facts or applicable law, for the denial of a claim or for the offer of a compromise settlement would amount to Unfair Claims Practices on the part of USAA. No insurer shall persist in seeking information not reasonably required for or material to the resolution of a claim dispute. No insurer shall attempt to settle a claim by making a settlement offer that is unreasonably low. The State Insurance Department shall consider any admissible evidence offered in determining whether or not a settlement offer is unreasonably low.
First Step is to wait for USAA to make a settlement offer. If you feel that it is fair and equitable, accept it and move on.
Second step, if USAA’s settlement offer falls short of your expectations, hire an independent appraisal company.
Third step, USAA will either accept your appraiser’s figure or, more likely, invoke the Appraisal Clause and hire an independent appraiser of their own.
Fourth step, your appraiser and the firm hired by USAA will attempt to agree on a fair compromised settlement. If USAA has hired a fair-minded independent appraisal firm, it will result in a more favorable resolution. If not, and the two appraisers reach an impasse, the last phase of Appraisal Clause ensues.
Fifth step, the appraisers will attempt to agree on an umpire to adjudicate the total loss dispute. If the appraisers can not concur, a local magistrate will appoint the umpire. A settlement figure will ensue upon agreement by any of the two parties.
The business model of all insurance companies is to charge as much as they can in premiums and to pay out as little as possible in claims. Keep this in mind when you receive the settlement offer for your total loss vehicle.
Additional fees you may incur are $125.00 for our representation in Appraisal Clause negotiations, and half of an umpire’s fee (Umpires typically charge from $300 – $700) if either are necessary. On average, approximately 10% of Appraisal Clause cases go to an umpire.
After making your payment, please email the insurance company CCC or other work sheet to contact@stlucieappraisal.net
Don T (California)- Thank you for your services. I am happy with the total loss valuation appraisal and feel the valuation to be true. When I drive to Tesla supercharger stations, none of the other Tesla’s stand out or is as nice as mine, and I get that comment all the time from Tesla and non-Tesla owners. It was my perfect dream car and is irreplaceable. You just can’t put a price tag on something like that. So it’s very insulting when Geico and CCC tries to value my car at such a ridiculous amount. So thank you for your great work and I will definitely be leaving you great reviews. Franklin was very helpful and extremely knowledgeable. He took his time to explain the process and what I would be expecting before I even hired him. I felt very comfortable working with him and couldn’t be more happy with his services. If you had a car that you loved and cherished and is irreplaceable, and you want to make sure it gets appraised at the right value even though you can’t put a price tag on it…then Franklin and The St. Lucie Appraisal Company is your go to appraiser. Thanks Franklin!
Gino B (Washington)- I know firsthand that if you are reading this testimonial – you’ve had some car problems (stolen, damaged, accident, etc.) You are probably in the right spot.
When my truck was stolen and recovered (with a lot of damage), my Insurance company (USAA), who I thought would be there for me when the chips were down made me a really low-ball offer. After some simple internet searches – it seems USAA has a habit of letting down their insurance customers.
I was pulling my hair out battling it out with USAA’s lowball offer until I found Franklin’s St. Lucie Appraisal team. Franklin quickly assisted me in understanding my rights, my options and provided expert advice and engaged with all parties as my representative in the appraisal process resulting in an award letter almost 3X higher than USAA’s initial low-ball offer. 3 TIMES HIGHER!
USAA initial offer was about $5K – Franklin was able to negotiate with other appraisers and get me a fair Actual Cash Value of $15K through the process. The juice is definitely worth the squeeze folks.
He was consistently available, professional, friendly, and considerate and took the time to understand my claim and help ensure I take the steps that were right for me. Before you go anywhere else – drop his team a line – you will be glad you did.
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