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. An adjuster evaluates the claim on behalf of the insurance company, and some common practices can lower what a claim is worth if they go unnoticed. Knowing these practices is one reason people speak with an auto accident lawyer before they sign anything.

Early calls from the adjuster

An adjuster for the other driver may call within days to request 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 https://caraccidentlawyers.wiki/reference/side-impact-collisions/ with that insurer. Statements made while in pain or on medication can be used later to dispute the claim. Adjusters sometimes send broad medical authorizations that open records unrelated to the crash. A car accident attorney will often limit what is shared to records connected to the crash.

Common settlement practices

An offer may 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 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.

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. 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 vehicles can support a higher valuation, 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. How long that period should last is a common dispute, especially when parts are back-ordered or the inspection is delayed. A person's own rental reimbursement coverage typically has a daily limit and a maximum number of days. Keeping receipts and notes of each call with the adjuster helps 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 it. An independent appraisal and the vehicle history report help document the loss. A motor vehicle accident attorney can explain whether the state where the crash happened allows the claim.

Complaints and general information

Every state has an insurance regulator that accepts consumer complaints, and some states also have bad faith laws for unreasonable claim handling. This is general information rather than legal advice, and no article can promise any result.