A Note for State Insurance Commissions
Our position, on the record.
Working auto claims in states across the country gives ACS a unique vantage point on how policy differences affect insureds. We would be happy to discuss this position in detail with any State Insurance Commission personnel or staff — please contact Mr. Robert McDorman.
Our position is not
Every auto claim should go to appraisal.
Our position is
- 1
Due to the tremendous volume of auto claims, the valuation of loss MUST BE AUTOMATED.
- 2
There is no, and will never be, a perfect automated vehicle valuation system.
- 3
The automated valuation systems approved by insurance carriers will always and understandably penalize any tendency of over-indemnification. Thus, the inevitable valuation errors will tend to be to the low side, harming insureds.
- 4
Therefore, the right of appraisal should be mandatory in every state of our nation and should be presented to insureds as the means of resolution when values are disputed.
The scale of the problem
2.6M+
total losses in the U.S. per year
$3,650
our average negotiated increase when valuations are wrong
$475M+
average annual under-indemnification if just 5% of valuations are wrong
We expect to have the answer to the actual percentage of automated valuations that are wrong by at least $1,600 soon. Stay tuned — and see the supporting record in our Texas Mandatory Appraisal Rules library.
Free Claim Review
Commission staff: let's talk.
We'll walk through the data behind this position with any State Insurance Commission personnel — reach out and we'll set it up.
800-736-6816Toll-free, nationwide
Start your free claim review
No cost. No obligation. 24-hour response.