NEBRASKA
DEPARTMENT OF INSURANCE
NEWSLETTER

VOLUME 1 - SPRING 1999

CONSUMER AFFAIRS DIVISION

Calculating Total Loss Vehicle Valuations

The "Calculating Total Vehicle Replacement Value" article in the Nebraska Department of Insurance 1997 Summer Newsletter has created a misunderstanding regarding the Department's position on acceptable sources of information.

The article references the N.A.D.A. Official Used Car Guide as a creditable resource to use, when calculating total loss values. However, it is not the only resource the Department will accept. To clarify, the Department's position on acceptable methods and/or resources when calculating total loss settlements are as follows:

  1. Official Trade Publication Guides, such as N.A.D.A.;
  2. Marketplace surveys including newspapers, magazines, etc.;
  3. Auto Dealer surveys; and
  4. Automobile Appraisal Valuation Firms.

Valuation appraisals should consider the following:

  1. The vehicle's mileage, either low or high;
  2. Recent restorative or maintenance work on the automobile; and
  3. The overall condition of the vehicle.

In addition, surveys should contain a reasonable number of sample vehicles based upon the availability of similar vehicles. Please note, a guide is to be utilized as a reference or starting point and not an absolute. Your company's file should reflect and document exactly how you arrived at the total loss value.

Copy of Response to Complainant Added to Investigation Process

Companies should continue to send its written responses to Consumer Affairs investigations directly to the investigator. In addition, if the response includes a positive outcome for the complainant, the Director requests companies send a carbon copy of the response directly to that complainant.

For example, companies should send a copy to a complainant when a file is resolved in the following manner:

Adding the copy to the investigation process will provide a more timely response to Nebraskans. The companies' cooperation is appreciated.