Auto insurance companies use one of several price guides to determine a totaled car’s value. Which guide they use can make hundreds of dollars difference in how much a claimant receives for a settlement.
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 (more…)