5 Tactics Insurance Companies Use to Lowball Total Loss Offers

Insurance adjusters aren't trying to scam you—they're doing their job. But their job is to settle claims for as little as possible while staying within legal bounds. Understanding their tactics helps you counter them effectively.

Here are the five most common lowball strategies and exactly how to respond.

Tactic 1: Cherry-Picking Low Comparables

The adjuster selects comparable vehicles from the lowest end of the market—often from rural areas, different states, or listings that have been sitting unsold for months.

This works against you because if they find one similar car listed for $8,000 in rural Oklahoma, they'll use it to justify a low offer—even if every car near you is listed for $12,000+.

To counter this, find 5-7 comparables within 50 miles of YOUR zip code. Focus on actual dealer listings (not private sales). Include the dates you captured the listings. Calculate the average and present it as the true local market value.

Tactic 2: Ignoring Condition Adjustments

They treat every vehicle as "average condition" regardless of how well you maintained yours. That pristine garage-kept car with full service records? Valued the same as one with mystery stains and deferred maintenance.

This works against you because condition can represent a $1,000-$3,000 difference in value that you lose.

To counter this, gather maintenance records (oil changes, tire rotations, major services). Document recent repairs or replacements (tires, brakes, battery). Find photos of your car before the accident. Get a statement from your mechanic if possible.

Tactic 3: Using Stale Data

Valuation software often uses sales data that's 30-90 days old. In a rising market (which has been the norm since 2020), this systematically undervalues vehicles.

This works against you because used car prices can shift 5-10% in a single month. Data from three months ago might be $2,000 off.

To counter this, pull current listings dated within the last 7-14 days. Note the capture dates on all your comparables. If their data is old, explicitly call this out.

Tactic 4: Deducting Reconditioning Costs

Some insurers deduct $500-$1,500 for "dealer reconditioning" or "retail markup"—arguing you should only get "wholesale" value.

This works against you because you can't buy a car at wholesale. You have to pay retail to replace your vehicle.

To counter this, check your policy language—most specify "actual cash value" or "fair market value," not "wholesale." Point out that you cannot purchase a replacement at wholesale prices. Ask them to identify where you can buy a comparable car at their offered price.

Tactic 5: Pressuring Quick Acceptance

Adjusters often create urgency: "This offer is only good for 48 hours" or "I can get this approved today, but tomorrow I'd need supervisor review."

This works against you because pressure leads to hasty decisions. You accept before doing research.

To counter this, know that most states give you at least 30 days to respond. Take your time to review and research. Don't let artificial deadlines pressure you.

The Counter-Tactic Playbook

When disputing, always be professional—anger doesn't increase settlements, evidence does. Put everything in writing—email creates a paper trail. Cite specific evidence. Know your escalation path. Set a reasonable counter—ask for what the evidence supports.

Real Example

Initial offer: $12,500 for a 2019 Honda Accord with 45,000 miles.

Issues found: Comparables from 150+ miles away, no condition adjustment for excellent maintenance, data from 60 days prior.

Counter-evidence: 6 local dealer listings averaging $15,800, maintenance records showing all services performed on schedule, current market data showing prices up 8% from their report date.

Result: Settlement increased to $15,200—a $2,700 improvement.

Get Help Building Your Case

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