BMW total loss valuation › Montana
Montana total loss rules for BMW owners
Montana has no rule of its own on valuing a total loss from comparable vehicles; its general claims law applies, and the national model rule shows the method most states use. Here is what that means, and what to do if the offer on your BMW looks low.
What the rules say
- Comparable vehicles. No Montana statute or regulation was found that prescribes how a total loss is to be valued from comparable vehicles. Montana Code Annotated § 33-23-202 voids a policy term that bases total-loss reimbursement on a book value: "reimbursement must be made for actual replacement value except as provided in 27-1-306". Under § 27-1-306, "Actual replacement value is the actual cash value of the motor vehicle immediately prior to the damage". 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 Montana law. The model regulation values the loss at “the cost of two or more comparable automobiles in the local market area when comparable automobiles are available or were available within the last ninety (90) days to consumers in the local market area”, and otherwise “the cost of two (2) or more comparable automobiles in areas proximate to the local market area, including the closest major metropolitan areas within or without the state”.
- Adjustments. Under the model regulation, “any deductions from the cost, including deduction for salvage, must be measurable, discernible, itemized and specified as to dollar amount and shall be appropriate in amount. The basis for the settlement shall be fully explained to the first party 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. Where comparables are not available, the model regulation permits “one of two or more quotations obtained by the insurer from two or more licensed dealers located within the local market area when the cost of comparable automobiles are not available”. Our Total Loss Market Valuation Report is a written quotation of market value from a licensed California dealer.
- How to request the insurer's valuation report. 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 Montana 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 Montana Commissioner of Securities and Insurance takes complaints about claim handling: https://csimt.gov/file-a-complaint/
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 Montana?
Montana has no rule of its own on valuing a total loss from comparable vehicles; its general claims law applies. Montana Code Annotated § 33-23-202 voids a policy term that bases total-loss reimbursement on a book value: "reimbursement must be made for actual replacement value except as provided in 27-1-306". Under § 27-1-306, "Actual replacement value is the actual cash value of the motor vehicle immediately prior to the damage".
How recent and how close must the comparable cars be in Montana?
The NAIC model regulation, which most states adopted in substance, values the loss at “the cost of two or more comparable automobiles in the local market area when comparable automobiles are available or were available within the last ninety (90) days to consumers in the local market area”, and otherwise “the cost of two (2) or more comparable automobiles in areas proximate to the local market area, including the closest major metropolitan areas within or without the state”.
Can I get the insurer's valuation report in Montana?
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. Then compare its comparables and adjustments with what cars like yours actually sold for.
What if I cannot buy a comparable car for what the insurer paid in Montana?
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 Montana provides the same period.
What if I still disagree with the insurer's offer in Montana?
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 Montana?
The Montana Commissioner of Securities and Insurance takes complaints about claim handling: https://csimt.gov/file-a-complaint/. 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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