The insurance total loss process is simply a racket! I am sick of reading emails from just about every corner of the country from people seeking some kind of consumer protection. It also seems that every insurance company is guilty as charged. Look, I make my living by dealing with insurance companies, and I truly believe in the societal need for insurance. However, when it comes to total loss claims, the consumer is getting the short end of the stick. Let me explain and I will let you form your own opinion.
The process is designed in such a way that the insurance carrier can make you take what they believe your car is worth. They decide this by finding comparable values in your area. These comparables are often assessed by independent third party companies. Insurance companies argue that they do not have any “control” over this information. However, I argued that this is not the case. The insurance total loss process is controlled and paid by the insurance company.
Who are these companies suppose to advocate for, the ultimate consumer or the person that pays them? Many people argue these companies are paid to act objectively, but in reality, they have few costumers
(big insurance carriers). If the insurance carrier believes that this companies total loss values are high, guess what? They will stop dealing with that specific company. Continue reading »