Diminished Value and Other Car Accident Insurance Issues
Most people deal with an insurance adjuster long before a lawsuit is even a question. An adjuster evaluates the claim on behalf of the insurance company, and some common practices can reduce the value of a claim if they go unnoticed. Knowing what to expect is one reason people talk with a car accident lawyer before they sign anything.
Early calls from the adjuster
The other driver's insurer may call within days and ask for a recorded statement. Usually there is no duty to give one to the other driver's insurer, although a person's own policy may require cooperation with their own insurer. Comments made while hurting or medicated can later be used to dispute the claim. Adjusters sometimes send broad medical authorizations that open records unrelated to the crash. A car crash lawyer usually limits what is shared to records related to the crash.
Common settlement practices
An early settlement offer can arrive before the full extent of an injury is known. Accepting it usually means signing a release that ends the injury claim. Insurers may argue that light vehicle damage means no one could have been hurt, or point to gaps in treatment and preexisting conditions. They may also argue comparative negligence, assigning part of the fault to the injured driver.
When the car is repaired or totaled
The property damage part of a claim usually resolves sooner than the injury part. If the car can be repaired, the insurer writes an estimate, and the repair shop may find hidden damage once work begins. Whether aftermarket parts may be used depends on the policy and state law. If repairs would cost more than a threshold set by state law or the insurer, the car is declared a total loss. The insurer then owes the actual cash value, meaning the market value just before the crash. Listings for comparable cars can support a higher number, and gap insurance, if purchased, may cover what is still owed on a loan.
Rental cars and loss of use
The at-fault driver's insurer may owe the reasonable cost of a rental car, or https://brooksoicd177.yousher.com/how-long-an-auto-accident-claim-takes-stage-by-stage payment for loss of use, while repairs are underway. The length of that period is often disputed, particularly when parts are delayed or the insurer is slow to inspect. Rental coverage under a person's own policy usually has a daily cap and a limit on the number of days. Keeping receipts and notes of each call with the adjuster helps support the claim.
Diminished value
Even after a good repair, a car with a crash history often sells for less. That loss is known as diminished value. Whether it can be recovered depends on the state and the type of claim. Third-party claims against the at-fault driver's insurer are more often allowed than first-party claims under one's own policy, which may exclude diminished value. An independent appraisal and the vehicle history report help document the loss. An automobile accident lawyer can explain whether the state where the crash happened allows the claim.
When a claim stalls
Each state has an insurance department that takes consumer complaints, and some states have bad faith laws for unreasonable claim handling. This article is general information, not legal advice, and no article can promise any result.