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Pennsylvania total loss rules for BMW owners

Pennsylvania has its own rule on how an insurer values a total loss: Pennsylvania 31 Pa. Code § 62.3(e). Here is what it says, and what to do if the offer on your BMW looks low.

What the rules say

• Comparable vehicles. Pennsylvania 31 Pa. Code § 62.3(e) provides: "Actual cost method. The appraiser shall determine the actual cost of purchase of an available motor vehicle of like kind and quality in condition similar to or better than the motor vehicle being appraised in its predamaged condition." 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 Pennsylvania 31 Pa. Code § 62.3(e), "The appraised value shall be adjusted for equipment and mileage, less the cost of repair of damage which preexisted the accident in question. No other deductions may be taken except for salvage and then only if the owner elects to retain the vehicle." 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 "Dealer quotation method. The appraiser shall consult with dealers or other persons knowledgeable in the field to secure quotations as to the value of the motor vehicle being appraised. At least two quotations shall be secured. The figures thus secured shall be averaged."
• How to request the insurer's valuation report. Under Pennsylvania 31 Pa. Code § 62.3(e) 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 Pennsylvania 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. Pennsylvania total-loss values are set by a licensed appraiser, who "is responsible for ensuring that a copy of the total loss evaluation report be sent within 5 working days to the consumer" (§ 62.3(e)(7)); the report must name the persons quoted and whether a similar vehicle was available ((e)(5)).
• Where to complain. The Pennsylvania Insurance Department takes complaints about claim handling (877-881-6388): https://www.pa.gov/agencies/insurance/consumer-help-center/complaints-questions-help

Connecticut, Delaware, Massachusetts, New York, Pennsylvania, South Carolina, Vermont and Nevada license motor vehicle appraisers, and Pennsylvania is one of them. Our report is a dealer's written market valuation, not an appraisal, and its preparer is not licensed as an appraiser in Pennsylvania. If the appraisal provision of the policy is invoked, appoint an appraiser licensed in Pennsylvania and give that appraiser our report as evidence of the market for the car.

If the offer on your BMW looks low

1. Ask for the insurer's valuation in writing. It lists the comparable cars the offer rests on and every adjustment made to them.
2. 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.
3. 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.
4. 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.

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Total loss rules in other states

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