Most auto insurance companies turn to one of three price guides when settling total loss claims. Each one offers its view of what used cars are worth based on

• year
• model
• mileage
• condition
• and options.

The National Auto Dealers Assn Official Used Car Guide (NADA is used by banks, car dealers and government agencies as well as insurance companies.

The NADA its figures are based on an analysis of wholesale car sales retail car sales in each region. Most auto insurance companies termed “substandard” by insurance department officials do not use any price guide. They are exempted from the regulation requiring use of a guide because they offer only stated value. A stated value policy automatically deducts 2 percent — or any other predetermined amount —per month from the purchase price of the vehicle.

Substandard carriers generally cater to high-risk drivers who have trouble obtaining policies from the first-line or second-line companies.