Diminished Value and Other Car Crash Insurance Issues
Most people deal with an insurance adjuster long before a lawsuit is even a question. The adjuster's job is to evaluate the claim for the insurance company, and some common practices can lower what a claim is worth if they go unnoticed. Understanding these practices is one reason people consult a car accident attorney before they sign anything.
Early calls from the adjuster
The other driver's insurer may call within days and ask for a recorded statement. There is usually no obligation to give one to the other side's insurer, though a person's own policy may require cooperation with that insurer. Comments made while hurting or medicated can later be used to dispute the claim. Adjusters may also send broad medical authorizations that reach records unrelated to the crash. An auto accident attorney will often limit what is shared to records connected to the crash.
Quick offers and low-impact arguments
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. Some insurers argue that minor vehicle damage means no one could have been hurt, or point to gaps in treatment and preexisting conditions. Many also raise comparative negligence, assigning a share 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 pays the actual cash value, the market value right before the crash. Listings for comparable vehicles can support a higher valuation, 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 payment for loss of use, while repairs are underway. How long that period should last is a common dispute, particularly when parts are delayed or the insurer is slow to inspect. A person's own rental reimbursement coverage typically has a daily limit and a maximum number of days. Receipts and a log of calls with the adjuster help support the claim.
Diminished value
Even after a good repair, a car with a crash history often sells for less. That difference is called diminished value. Whether it can be recovered depends on the state and on the kind of claim. Claims against the at-fault driver's insurer are more commonly allowed than claims under a person's own policy, which https://jsbin.com/dutiguzowe may exclude it. A written appraisal and the vehicle history report can document the loss. An automobile accident lawyer will know the rule in the state where the crash happened.
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 is general information rather than legal advice, and no article can promise a particular result.