Auto Claims Glossary

All terms

• Actual Cash Value (ACV)

  Actual Cash Value is what your car was worth on the open market the moment before it was damaged. Insurers calculate ACV using comparable vehicles for sale in your local market, then subtract for prior damage, mileage, or condition. ACV — not replacement cost — is what most personal auto policies pay on a total loss.

• Appraisal Clause

  Most US auto policies include an appraisal clause. When the insurer and policyholder disagree on the loss amount, either side can invoke it. Each party hires a competent, disinterested appraiser; the two appraisers select an umpire; the value any two of them agree on is binding.

• Audatex Autosource

  Audatex Autosource is one of the mainstream total-loss valuation reports. Like CCC, it relies on local comparables but applies its own condition adjustments.

• Bad Faith

  Lowballing, ignoring evidence, or stalling can rise to bad-faith claims. Many states allow extra-contractual damages and attorney fees on a successful bad-faith case.

• CCC ONE

  CCC ONE (also called CCC Intelligent Solutions or CCC Market Valuation Report) generates an ACV by pulling local comparable listings and applying condition and option adjustments. It is the most common report you will see attached to a total-loss offer.

• Comparable Sales (Comp Sales)

  Comparable sales are the recent retail listings and verified sales of vehicles closest in year, make, model, trim, mileage, equipment, and condition to your loss vehicle, drawn from your local market.

• Competent and Disinterested Appraiser

  Most appraisal clauses require a 'competent and disinterested' appraiser — meaning experienced and free of financial interest in the outcome.

• Condition Adjustment

  Insurers default to 'normal wear' (CCC's 'Private Party Normal'). Anything labeled 'fair' or 'poor' applies a deduction, sometimes thousands of dollars, that you can challenge with photos and service records.

• Diminished Value

  Even a perfectly repaired car is worth less because the accident appears on Carfax and AutoCheck. Diminished value claims are typically filed against an at-fault third party (third-party claim) using the 17c formula or a market-based appraisal.

• DOI Complaint

  If informal negotiation fails, you can file a complaint with your state DOI. Insurers must respond on a regulator-imposed timeline, which often resolves disputes.

• First-Party Claim

  If you carry collision and you damage your own car (or you don't know who's at fault), you file a first-party claim. Your appraisal clause rights apply.

• Gap Coverage

  Gap coverage protects you when your loan balance exceeds ACV. Without it, you owe the lender the difference out of pocket.

• Letter of Guarantee (LOG)

  If you still owe on the loan, the insurer requires an LOG from your lender stating the payoff and routing. The settlement check goes to the lender first; any surplus comes to you.

• Loss of Use

  On third-party claims, you can recover rental car costs or a per-day loss-of-use figure for the time you were without your vehicle.

• Mitchell WorkCenter Total Loss

  Mitchell WorkCenter Total Loss (formerly WorkCenter TLV) is one of the mainstream total-loss valuation reports; carriers vary in which vendor they use for a given claim.

• Owner-Retained Salvage

  You can usually keep the salvage by accepting a reduced settlement (ACV minus salvage value). Useful if you want to repair and re-title the vehicle.

• Rebuilt Title

  A rebuilt title (sometimes called 'reconstructed', 'prior salvage', or 'restored') is issued after a salvage-branded vehicle has been repaired and passed a state-mandated safety inspection.

• Release of Claims

  Signing a release closes the claim. Never sign before you understand exactly what is included (loss of use, sales tax, diminished value, etc.) — the release usually waives all related claims.

• Sales Tax & Title Fee Recovery

  Many states require insurers to reimburse sales tax and registration fees on a comparable replacement, either upfront or upon proof of purchase. Rules vary by state.

• Salvage Title

  A salvage title is issued when a car has been declared a total loss — typically because repair costs plus salvage value exceeded the pre-loss ACV, or the vehicle hit the state's total-loss percentage threshold.

• Salvage Value

  Salvage value is the auction price the insurer expects to recover after taking your totaled car. If you keep the salvage, this amount is deducted from your settlement.

• Stated Value

  Stated-value policies pay the lower of stated value or ACV. Agreed-value policies pay the agreed amount regardless of ACV — preferred for collector cars.

• Third-Party Claim

  When someone else is responsible for the accident, you can file with their liability carrier. Third-party claims do not include an appraisal clause but you have stronger negotiation leverage.

• Title Status

  After a total loss, the title is rebranded — usually 'Salvage' or 'Junk'. Each state has its own rules and required disclosures.

• Total Loss

  A car is declared a total loss when repair cost plus salvage value exceeds the vehicle's pre-loss ACV (or a state-specific percentage threshold, often 70–80%). Once totaled, the insurer takes ownership of the salvage and issues an ACV settlement.

• Umpire

  After both appraisers submit their values, they select an umpire. The value any two of the three agree on becomes the binding settlement.

• Uninsured/Underinsured Property Damage (UMPD/UIMPD)

  UMPD/UIMPD pays for your vehicle damage when the other driver has no insurance or insufficient limits. Subject to your policy's appraisal clause.