Claims Valuation
Total-loss determination and settlement pricing with comparable evidence — defensible against any adjudication
Purpose
Total-loss settlements are the most contested area of auto insurance claims. A settlement offer anchored only to a book value lookup — without specific comparable evidence — is the first thing a claimant's attorney attacks. A defensible total-loss determination requires three things: a pre-loss fair market value (FMV) calculated from actual comparables, a documented total-loss threshold calculation, and a settlement range supported by cited sold transactions. Without all three, the claim is exposed.
Claims Valuation builds all three in one workflow: it makes three pricing calls (franchise retail, independent wholesale, and CPO if applicable), pulls 20 active comparable listings and 90 days of sold transactions within a 100-mile radius, condition-adjusts the FMV, calculates the total-loss threshold (FMV × threshold_pct, default 75%), and outputs a low/mid/high settlement range with salvage value and net claim cost. Every comparable is cited by VIN, price, mileage, dealer, and distance — the format required for dispute resolution. For batch events (hail, flood), it processes multiple VINs and summarizes total claim exposure.
How It Works
Execution flow. MCP tool calls are shown inline on each step.
Reads marketcheck-profile.md for ZIP, state, role, total_loss_threshold_pct (default 75%), and default_comp_radius (default 100mi). US-only; UK not supported for claims valuation workflows.
decode_vin_neovinCalls decode_vin_neovin to get exact specs: year, make, model, trim, body type, drivetrain, engine, transmission, and original MSRP. Assumed trims lose credibility in dispute resolution — the VIN decode is the claims foundation.
↔ Parallel Execution
predict_price_with_comparablesCalls predict_price_with_comparables with VIN, miles, ZIP, dealer_type=franchise. Franchise retail represents the cost a claimant would face to purchase an equivalent replacement vehicle from a licensed dealer.
predict_price_with_comparablesParallel call with dealer_type=independent for the wholesale-proxy value. Pre-loss FMV = average of both, condition-adjusted: Clean = higher prediction, Average = average, Rough = lower minus 5%.
↔ Parallel Execution
search_active_carsCalls search_active_cars with YMMT, ZIP, radius=100mi (wider for defensible claims), mileage band ±15K of odometer, car_type=used, sorted by price ascending, rows=20. Returns 20 comparables — the wider radius captures sufficient evidence for dispute resolution.
search_past_90_daysParallel call to search_past_90_days with the same YMMT and location filters. Sold transaction data is the strongest evidence in a settlement dispute — it reflects what buyers actually paid, not what sellers are asking.
Repair cost threshold = FMV × total_loss_threshold_pct (from profile or default 75%). If estimated repair cost > threshold: TOTAL LOSS. If repair cost not provided, outputs the threshold: 'This vehicle is a total loss if repair costs exceed $X,XXX (75% of FMV)'.
Settlement tiers: Low = 25th percentile of sold transactions (condition-adjusted), Mid = pre-loss FMV, High = 75th percentile. Salvage = 15-25% of FMV based on damage severity (cosmetic 25%, mechanical 20%, structural/flood 15%). Net claim cost = settlement - salvage.
Delivers: vehicle ID summary, pre-loss FMV table (franchise/independent/condition-adjusted), total-loss threshold and determination, settlement range (low/mid/high), salvage estimate, net claim cost, comparable tables (active + sold with VIN/price/miles/dealer), methodology notes.
MCP Tool Calls
| Tool | Calls | Purpose |
|---|---|---|
decode_vin_neovin | 1 | Exact vehicle specs for defensible claims documentation |
predict_price_with_comparables | 2–3 | Franchise retail FMV, independent wholesale proxy FMV; third call with is_certified=true for CPO vehicles |
search_active_cars | 1 | Active comparable listings within 100-mile radius for FMV evidence |
search_past_90_days | 1 | Sold transaction evidence — strongest support in settlement disputes |
Example Output
CLAIMS VALUATION REPORT ════════════════════════════════════════════════ Vehicle: 2020 Toyota Camry XSE V6 VIN: 4T1K61AK3LU456789 Odometer: 52,100 miles | Pre-loss condition: Average Date of loss: February 14, 2026 Location: Houston, TX (ZIP 77001) | Radius: 100 mi PRE-LOSS FAIR MARKET VALUE Franchise (Retail) Predicted: $26,400 Independent (Wholesale) Predicted: $23,800 Pre-Loss FMV (Average condition): $25,100 (average of both, condition-adjusted) MSRP at time of purchase: $35,020 | Current retention: 71.7% TOTAL-LOSS DETERMINATION FMV: $25,100 Total-loss threshold: $18,825 (75% of FMV) ───────────────────────────────────────────── If repair costs exceed $18,825 → TOTAL LOSS Estimated repair cost: $22,400 → ⚠ TOTAL LOSS CONFIRMED SETTLEMENT RANGE Low (25th pct sold): $22,100 Mid (FMV): $25,100 ← Recommended settlement High (75th pct sold): $27,300 SALVAGE ESTIMATE Damage severity: Structural (collision) Salvage estimate: $3,765 (15% of FMV) Net claim cost (mid): $21,335 COMPARABLE EVIDENCE — Active Listings (20 within 100mi) # VIN Price Miles Dealer Dist DOM ─── ───────────────── ─────── ────── ─────────────────────── ───── ─── 1 4T1K61AK1LU123456 $22,100 56,200 CarMax Houston 9 mi 18 2 4T1K61AK3LU234567 $24,200 49,800 AutoNation Toyota 14 mi 8 3 4T1K61AK5LU345678 $25,400 51,100 Carvana 0 mi 4 SOLD TRANSACTIONS (Last 90 Days, 12 sales) # VIN Sold Price Miles Dealer Sale Date ─── ───────────────── ────────── ────── ────────────────── ────────── 1 4T1K61AK0LU789012 $22,100 54,800 CarMax Jan 08 2 4T1K61AK2LU890123 $24,900 50,200 AutoNation Feb 01 3 4T1K61AK4LU901234 $27,300 47,100 Hendrick Toyota Feb 11
Cost Estimate
500 claims/month ≈ $40–100
Limitations
- US-only — requires predict_price_with_comparables and search_past_90_days, both US-only.
- The 75% total-loss threshold is a common default — actual thresholds vary by state and insurer. Always use the profile value if set.
- For disputed settlements, expand search radius to 150-200 miles and include older sold data for maximum comparable evidence.
- Batch claims processing requires running each VIN sequentially — volume claims events should be pre-queued.
- Salvage value estimates (15-25% of FMV) are guidelines — actual salvage bids should supersede estimates when available.
More in the Insurer Plugin
Comparable-backed insurance valuation with CPO detection and regional variance
View details →Claim value trending and replacement cost tracking for reserve adequacy
View details →Insurance risk intelligence for underwriting and portfolio exposure analysis
View details →VIN decode, listing history, and estimated value for claims context
View details →Same Capability, Different Plugin
These skills share the same underlying methodology but are tuned for a different audience.
Independent appraisers produce the same comparable-backed FMV using the same methodology — when a claimant disputes a settlement, they hire an appraiser whose report is structurally identical to this claims valuation.
View in Appraiser →Lenders use the same franchise retail FMV to assess collateral coverage — when a total-loss claim is filed on a vehicle with an outstanding loan, the insurer's settlement amount directly determines whether a deficiency balance results.
View in Lender →