BMW total loss valuation › New Jersey
New Jersey total loss rules for BMW owners
New Jersey has its own rule on how an insurer values a total loss: New Jersey N.J.A.C. 11:3-10.4. Here is what it says, and what to do if the offer on your BMW looks low.
What the rules say
- Comparable vehicles. New Jersey N.J.A.C. 11:3-10.4 provides: "a substantially similar vehicle by the same manufacturer of the same year, make and model, with similar options, mileage, and condition as the destroyed vehicle". Comparables must have been available and within 25 miles of where the vehicle is garaged.
- Adjustments. Under New Jersey N.J.A.C. 11:3-10.4, "Written, itemized valuations showing all options and deductions shall be included in the insurer's claim file and presented to the insured no later than the date of payment." 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 "A quotation obtained by the insurer for a substantially similar motor vehicle from a dealer located within a reasonable distance from the principal place of garagement of the insured vehicle."
- How to request the insurer's valuation report. Under New Jersey N.J.A.C. 11:3-10.4 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. If you cannot buy a comparable vehicle for the amount paid within 30 days, the claim can be reopened under New Jersey N.J.A.C. 11:3-10.4.
- 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 New Jersey Department of Banking and Insurance takes complaints about claim handling (800-446-7467): https://www.nj.gov/dobi/consumer.htm
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 New Jersey?
New Jersey N.J.A.C. 11:3-10.4 provides: "a substantially similar vehicle by the same manufacturer of the same year, make and model, with similar options, mileage, and condition as the destroyed vehicle". Under New Jersey N.J.A.C. 11:3-10.4, "Written, itemized valuations showing all options and deductions shall be included in the insurer's claim file and presented to the insured no later than the date of payment."
How recent and how close must the comparable cars be in New Jersey?
Comparables must have been available and within 25 miles of where the vehicle is garaged. 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 New Jersey?
Under New Jersey N.J.A.C. 11:3-10.4 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 New Jersey?
If you cannot buy a comparable vehicle for the amount paid within 30 days, the claim can be reopened under New Jersey N.J.A.C. 11:3-10.4. Our Total Loss Market Valuation Report lists what dealers are asking for comparable cars near you today, widening the search nationwide when it has to.
What if I still disagree with the insurer's offer in New Jersey?
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 New Jersey?
The New Jersey Department of Banking and Insurance takes complaints about claim handling (800-446-7467): https://www.nj.gov/dobi/consumer.htm. 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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