Insurance Adjusters, Total Losses and Diminished Value

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 these practices is one reason people speak with an auto accident lawyer before they sign anything.

Recorded statements and medical authorizations

An adjuster for the other driver may call within days to request 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. 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. A car accident attorney will often limit what is shared to records connected to the crash.

Early offers and disputed injuries

An offer may arrive before the full extent of an injury is known. Accepting https://caraccidentlawyers.wiki/reference/whiplash-and-soft-tissue-injuries/ 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 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.

Repairs and total losses

The property damage part of a claim usually resolves sooner than the injury part. When a car is repairable, the insurer prepares 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 a remaining loan balance.

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.

Loss in resale 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 may exclude diminished value. An independent appraisal and the vehicle history report help 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 also have bad faith laws for unreasonable claim handling. This article is general information, not legal advice, and no article can promise any result.