BMW total loss valuation › Alaska
Alaska total loss rules for BMW owners
Alaska has its own rule on how an insurer values a total loss: Alaska 3 AAC 26.080(a)(1)(B). Here is what it says, and what to do if the offer on your BMW looks low.
What the rules say
- Comparable vehicles. Alaska 3 AAC 26.080(a)(1)(B) gives no definition of a comparable vehicle. The NAIC Unfair Property/Casualty Claims Settlement Practices Model Regulation, Section 8, which most states adopted in substance, describes a comparable automobile as one “by the same manufacturer, same or newer year, similar body style, similar options and mileage as the insured vehicle and in as good or better overall condition”; it is cited here as the model, not as Alaska law. Comparables must have been available within 90 days.
- Adjustments. Under Alaska 3 AAC 26.080(a)(1)(B), "the person adjusting or settling the claim shall itemize each deduction and explain the basis for each reduction in writing to the claimant." A settlement that deviates from the comparable-vehicle methods on account of the vehicle's condition must be supported: under the model regulation “the deviation must be supported by documentation giving particulars of the automobile condition”, with every deduction itemized in dollars.
- Dealer quotations. The rule permits "the average of two or more cost quotations obtained for a comparable motor vehicle from two or more licensed dealers located within the local market area, if a comparable motor vehicle is not available in that area".
- How to request the insurer's valuation report. Under Alaska 3 AAC 26.080(a)(1)(B) the insurer must show you the basis of its valuation on request. Ask the adjuster in writing for the complete valuation report on which the offer rests, including each comparable, its source, price, mileage and every itemized adjustment, and keep a copy of the request and the response.
- If you cannot buy a comparable. The model regulation gives a right of recourse: “if the insurer is notified within thirty-five (35) days of the receipt of the claim draft that the insured cannot purchase a comparable vehicle for the market value, the company shall reopen its claim file”, and either locate a comparable vehicle, pay the difference, or settle under the policy's appraisal provision. Check whether Alaska provides the same period.
- The appraisal clause. Under the policy's appraisal provision, you and the insurer each appoint a competent, impartial appraiser; the appraisers then agree a value or submit their differences to an umpire. Our report can be given to the appraiser you appoint as evidence of what cars like yours sell for.
- Where to complain. The Alaska Division of Insurance takes complaints about claim handling (907-269-7900): https://www.commerce.alaska.gov/web/ins/Consumers/FileaComplaint.aspx
If the offer on your BMW looks low
- Ask for the insurer's valuation in writing. It lists the comparable cars the offer rests on and every adjustment made to them.
- Check the comparables. They should be the same generation, body, gearbox and trim as your car, at similar mileage. Enthusiast and classic BMWs are where the software most often reaches for the wrong cars.
- See what cars like yours actually sold for. The valuation tool shows recorded Bring a Trailer and Cars & Bids sales for your model, year and mileage. Free.
- Put the evidence in front of the adjuster. The Total Loss Market Valuation Report ($199) lays out comparable sales, adjustments in dollars and your state's rule, with a letter to your adjuster on the first page. The preview is free.
Questions
How is a totaled BMW valued in Alaska?
Alaska 3 AAC 26.080(a)(1)(B) gives no definition of a comparable vehicle. The NAIC Unfair Property/Casualty Claims Settlement Practices Model Regulation, Section 8, which most states adopted in substance, describes a comparable automobile as one “by the same manufacturer, same or newer year, similar body style, similar options and mileage as the insured vehicle and in as good or better overall condition”; it is cited here as the model, not as Alaska law.
How recent and how close must the comparable cars be in Alaska?
Comparables must have been available within 90 days. They should also be the same generation, body, gearbox and trim as your car, at similar mileage; enthusiast and classic BMWs are where the software most often reaches for the wrong cars.
Can I get the insurer's valuation report in Alaska?
Under Alaska 3 AAC 26.080(a)(1)(B) the insurer must show you the basis of its valuation on request. Ask the adjuster in writing for the complete valuation report on which the offer rests, including each comparable, its source, price, mileage and every itemized adjustment, and keep a copy of the request and the response.
What if I cannot buy a comparable car for what the insurer paid in Alaska?
The NAIC model regulation, which most states adopted in substance, gives a right of recourse: “if the insurer is notified within thirty-five (35) days of the receipt of the claim draft that the insured cannot purchase a comparable vehicle for the market value, the company shall reopen its claim file”, and either locate a comparable vehicle, pay the difference, or settle under the policy's appraisal provision. Check whether Alaska provides the same period.
What if I still disagree with the insurer's offer in Alaska?
Under the policy's appraisal provision, you and the insurer each appoint a competent, impartial appraiser; the appraisers then agree a value or submit their differences to an umpire. Our report can be given to the appraiser you appoint as evidence of what cars like yours sell for.
Where do I complain about a total loss claim in Alaska?
The Alaska Division of Insurance takes complaints about claim handling (907-269-7900): https://www.commerce.alaska.gov/web/ins/Consumers/FileaComplaint.aspx. Before you file, ask the adjuster in writing for the complete valuation report on which the offer rests, with each comparable and every itemized adjustment, and keep a copy of the request and the response.
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Total loss rules in other states
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