Insurance Adjusters, Total Losses and Diminished Value

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 reduce the value of a claim if they go unnoticed. Understanding these practices is one reason people consult a car accident attorney before they sign anything.

Recorded statements and medical authorizations

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 sometimes send broad medical authorizations that open records unrelated to the crash. An auto 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 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. Many also raise comparative negligence, assigning a share of the fault to the injured driver.

When the car is repaired or totaled

A property damage claim usually moves faster than an injury claim. If the car can be repaired, the insurer writes an estimate, and the shop may find more damage once the car is taken apart. 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 cars can support a higher number, and gap insurance, if purchased, may cover a remaining loan balance.

Rental cars and loss of use

While the car is being repaired, the at-fault driver's insurer may owe the reasonable cost of a rental or payment for loss of use. 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.

Loss in resale value

A repaired car with a crash history often sells for less than one without. That difference is called diminished value. Whether it can be recovered depends on the state and the type of claim. Claims against the at-fault driver's insurer https://jsbin.com/bularucihe are more commonly allowed than claims under a person's own policy, which may exclude it. An independent appraisal and the vehicle history report help document the loss. A car accident lawyer will know the rule in the state where the crash happened.

Complaints and general information

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.