Cash settle a driveable total loss

Steps to cash settle a driveable total loss vehicle.

Prerequisites

The estimator has confirmed the

claim or estimate is not on hold
loss type, such as, hit and run , and
vehicle is not an unsafe vehicle and damage sustained is cosmetic only.
Note: Cosmetic damage is commonly minor dents or scrapes, not structural or mechanical, and is limited solely to the outer body or interior panels of a vehicle. For example, keys, paint scratches or sheet metal hail damage.

When this applies

A customer requests to cash settle their vehicle that was deemed a driveable total loss.

Procedure

Check the claim for potential duplicate payments.

If there are …	Then …
potential duplicate payments	do not process the claim, and contact the claim owner or exposure owner to investigate the claim. Note: Proceed to step 2 once the claim owner or exposure owner confirms that any duplicate payments have been resolved.
no potential duplicate payments	proceed to step 2.

Confirm if the Estimate or Appraisal already exists.

If the Estimate or Appraisal …	Then …
already exists	create a supplement to the Estimate or Appraisal complete the Total Loss Valuation establish the actual cash value (ACV) record the ACV, and deduct the salvage value from the ACV by using the IAA Market Guide market value, or recycled vehicle program contract amount.
does not already exist	complete the vehicle’s Estimate or Appraisal complete the Total Loss Valuation establish the ACV record the ACV, and deduct the salvage value from the ACV by using the IAA Market Value Guide market value, or recycled vehicle program contract amount.

Determine the appropriate cash settlement amount.

Cash settlement amount = ACV - salvage

Obtain approval from the appropriate manager.

Note: If the claim is a commercial or heavy equipment claim, then the approval process differs. For additional information, refer to Approve commercial vehicle cash settlement.

If the cash settlement is …	The approver is the …
less than $5,000, and does not involve a hit and run claim, or any audio, visual, and communications equipment claim	estimator.
$5,000-$14,999 or is a hit and run claim under $15,000, or any audio, visual, and communications equipment claim under $15,000	estimating services manager.
$15,000 or more	operational estimating services manager.

Confirm how the Estimate or Appraisal is generated.
Specify the vehicle as a Confirmed Total Loss in the Estimating Decisions tab.
Retrieve or create the EST - Cash Settlement activity.
Add a note to the claim stating that the claim was settled and include cash settlement amount.
Complete the activity.