When your insurer declares a car a total loss, the check it offers becomes the budget for your next vehicle. A total loss valuation report sets that number. Most owners never read it closely, and many never ask to see it.
A federal class action in Colorado recently settled for more than $15 million over one line in those reports. The case, Curran v. Progressive, challenged an adjustment that trimmed money from comparable vehicles. Progressive denies any wrongdoing and agreed to settle to avoid the cost of trial.
You don’t need to be a Progressive customer for this to matter. Most insurers rely on outside software vendors to build these reports. As a result, the lessons from this case apply to almost any total loss claim.
Eric Reamer of Nylund’s Collision Center walks through the case in the video below. This article goes further into how valuations work and what you can do when the number looks low.
How a Total Loss Valuation Works
Insurers total a vehicle when repairing it no longer makes financial sense. Each state sets its own rules for that decision. Some use a fixed percentage of the car’s value. Others add the expected salvage value to the repair cost and compare the total against the car’s worth.
Today’s vehicles cross that line sooner than older models did. Cameras, radar sensors, and the calibrations they require add cost to repairs that once looked routine. Because of that, more owners now end up negotiating a valuation instead of a repair.
What Actual Cash Value Means for Your Claim
Your policy pays actual cash value, or ACV. That figure reflects what your car was worth the moment before the loss. It doesn’t reflect what you paid for the car or what a new one costs.
ACV also has no connection to your loan balance. If you owe more than the car’s value, the insurer pays your lender first. Gap coverage, if you carry it, may cover some or all of the shortfall. Without it, you owe the difference yourself. That is how a totaled car payout works under most policies.
How Comparable Vehicles Shape Your Total Loss Valuation
Insurers rarely build a total loss valuation in-house. Instead, they license software from vendors such as Mitchell or CCC. The software searches for comparable vehicles, often called comps, listed for sale near you.
Next, the report adjusts each comp to match your car more closely. A comp with fewer miles gets adjusted down. On the other hand, a comp missing an option your car has gets adjusted up. The report then blends those adjusted prices into one figure, and that figure becomes your offer.
What a Projected Sold Adjustment Does to a Total Loss Valuation
Comps in these reports usually come from dealer listings. Those listings show asking prices rather than final sale prices. A projected sold adjustment lowers each asking price to reflect the discount the vendor expects a buyer to negotiate.
The math looks small on any single comp. For example, picture three comparable SUVs listed at $24,000, $25,000, and $26,000. A 3% adjustment on each drops the average from $25,000 to $24,250. That $750 disappears from your offer before anyone discusses condition or options.
The plaintiffs in the Colorado case argued that this assumption broke down in recent years. Used car prices climbed sharply, and many dealers sold at sticker price or above. Meanwhile, owners replacing a totaled car still paid full asking price. In the plaintiffs’ view, the assumed discount helped the insurer and did nothing for the policyholder.
However, courts have not settled this question. A federal appeals court sided with Progressive in an Arizona case over the same type of adjustment. Other lawsuits, including Curran, ended in settlements with no finding of fault. Similar challenges have also targeted other insurers and vendors in several states.
For consumers, the takeaway is practical. Any line that subtracts money from a comp deserves an explanation you can understand.
Common Errors in a Total Loss Valuation Report
Disputed adjustments are only part of the picture. A total loss valuation can also contain ordinary mistakes, and those mistakes can cost owners real money.
Wrong Trim Level or Missing Options
Software often decodes a VIN without capturing every package or option. A Limited trim might get compared to a base model. Factory upgrades like premium audio, heated seats, or a technology package may never appear. Check the options list against your window sticker or build sheet.
Mileage and Distance Gaps
A comp with 30,000 more miles should carry a meaningful adjustment. Sometimes that adjustment looks too small to reflect real market differences. Also check where each comp sits. A vehicle listed hours away may not match pricing in your local market.
Condition Deductions Without an Inspection
Many reports rate your car’s interior, exterior, tires, and mechanical systems. In some cases, nobody has looked closely at the car before rating it. Ask who assigned each rating and what they based it on. Photos and service records can challenge an unsupported deduction.
Taxes, Fees, and Prior Damage
Ask whether the offer includes sales tax, title, and registration fees. Rules on these items vary by state and by policy. In addition, review any deduction for prior damage. If a shop already fixed an old dent, your invoice proves it.
How to Dispute a Total Loss Valuation
A first offer is open to discussion. These six steps cost nothing but time, and they put your case on paper.
1. Request the Full Report in Writing
A number read over the phone gives you nothing to check. Ask for the complete valuation report, including every comp and every adjustment. Request the VIN or listing source for each comp so you can confirm it existed.
2. Review Every Adjustment Line
Read each line that adds or subtracts money. Watch for terms like projected sold, negotiation, or condition. If you can’t follow the reasoning, ask the adjuster to explain it in writing. Written answers create a record you can use later.
3. Verify the Comparable Vehicles
Confirm that each comp matches your car’s trim, drivetrain, engine, and options. Then compare mileage and location. When a comp doesn’t fit, say so clearly and explain why.
4. Build Your Own Evidence File
Find current listings for vehicles that truly match yours. Save screenshots with dates and prices. After that, gather service records and receipts for recent work such as tires, brakes, or a timing belt. Pre-loss photos also help show your car’s real condition.
Finally, put everything into a short written rebuttal. List each error, the correction you want, and the dollar amount you believe is fair. Specific numbers give the adjuster something concrete to respond to.
5. Take Your Time Before Signing
Adjusters sometimes point to storage fees or an ending rental to speed things along. Those costs matter, so ask the insurer to move the car to a no-cost location while you review. Avoid signing a release or title transfer until you agree with the value. Once you sign, you may lose the ability to dispute it.
6. Know Your Options If You Still Disagree
Most auto policies include an appraisal clause. You hire an independent appraiser, and the insurer hires one too. If the two can’t agree, a neutral umpire decides. You typically pay your own appraiser and share the umpire’s fee.
Appraisal makes the most sense when the gap is large enough to cover those costs. A few hundred dollars may not justify it. A gap of several thousand often does.
Colorado drivers can also contact the Colorado Division of Insurance. Its consumer services staff can answer questions and help you decide whether to file a formal complaint.
Why Your Collision Shop Cares About Your Total Loss Valuation
At Nylund’s, we see total losses from the repair side of the claim. Some vehicles land close to the threshold, where small errors in a total loss valuation can change the outcome. A higher ACV can sometimes make a repair the better financial choice.
If your car sits near that line, ask for the repair estimate behind the total loss decision. A certified shop can review it for missing or unnecessary operations. That review gives you a clearer picture before you accept either outcome.
Before the insurer takes the car, remove personal items, garage door openers, and toll transponders. Aftermarket equipment you added, like a hitch or upgraded wheels, may also affect the value. Mention it in your rebuttal and include receipts.
Who Qualifies for the Colorado Progressive Total Loss Settlement
The Curran settlement covers two groups of Colorado policyholders. Both groups include people who filed a claim for damage to their own vehicle under a personal auto policy. In each case, Progressive declared the car a total loss. Its payment relied on a Mitchell report that applied a projected sold adjustment to at least one comp.
Progressive Direct customers qualify for claims from April 12, 2019, through July 8, 2026. Progressive Preferred customers qualify for claims from December 19, 2021, through July 8, 2026.
How Much Class Members Receive
The settlement calculates an impact amount as a percentage of your car’s value. That rate is 2.75% for Progressive Direct and 2.25% for Progressive Preferred. Class members receive 68% of that impact amount. Anyone with more than one covered total loss receives payment for each claim.
For example, a Progressive Preferred customer with a $30,000 vehicle has an impact amount of $675. At 68%, the payment comes to about $459.
How to File and Key Deadlines
Eligible owners should have received a notice by mail or email with a claim ID and PIN. You can file online or by mail through the official Colorado total loss settlement website. You can also choose direct deposit or a paper check.
The claim deadline is February 5, 2027. If you want to exclude yourself and pursue your own case, that deadline is November 5, 2026. If you lost your notice, call the settlement administrator at 1-888-808-1463.
Protect Your Payout Before You Accept a Total Loss Valuation
A total loss valuation is a starting point built from software, listings, and assumptions. Some of those assumptions hold up. Others deserve questions, and you are the only person reviewing the report on your behalf.
Ask for the full report and challenge anything you can’t verify. Keep your service records and photos organized before you ever need them. If you have questions about a repair estimate or a total loss decision, the team at Nylund’s Collision Center can review it with you.