Insurance Adjusters, Total Losses and Diminished Value

After a car crash, most people deal with an insurance adjuster long before they think about a lawsuit. The adjuster's job is to evaluate the claim for the insurance company, and some common practices can reduce the value of a claim if they go unnoticed. Knowing these practices is one reason people speak with an auto accident lawyer before signing anything.

Recorded statements and medical authorizations

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, though a person's own policy may require cooperation with that insurer. Statements made while in pain or on medication can be used later to dispute the claim. Adjusters may also send broad medical authorizations that reach records unrelated to the crash. A car accident attorney 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 they may point to preexisting conditions and gaps in treatment. They may also argue comparative negligence, assigning part of the fault to the injured driver.

Property damage claims

A property damage claim usually moves faster than an injury claim. If the car can be repaired, the insurer writes an estimate, and the repair shop may find hidden damage once work begins. Rules on aftermarket parts depend on the policy and state law. When repairs would exceed 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.

Getting around during repairs

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 https://trentonvttn902.ironwoodscope.com/posts/police-reports-dashcam-video-and-car-crash-evidence that period should last is a common dispute, 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.

What diminished value means

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 claims under a person's own policy, which may exclude diminished value. An independent appraisal and the vehicle history report help document the loss. A car accident lawyer can explain whether the state where the crash happened allows the claim.

When a claim stalls

Every state has an insurance regulator that accepts consumer complaints, and some states also have bad faith laws for unreasonable claim handling. This article is general information, not legal advice, and no article can promise a particular result.