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 lower what a claim is worth if they go unnoticed. Understanding these practices is one reason people consult a car accident attorney before signing anything.
Recorded statements and medical authorizations
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, although a person's own policy may require cooperation with their own 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. An auto accident attorney usually limits what is shared to records related to the crash.
Early offers and disputed injuries
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 they may point to preexisting conditions and gaps in treatment. Many also raise comparative negligence, assigning a share of the fault to the injured driver.
Repairs and total losses
A property damage claim usually moves faster than an injury claim. When a car is repairable, the insurer prepares 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 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 a remaining loan balance.
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 that period should last is a common dispute, especially when parts are back-ordered or the inspection is delayed. Rental coverage under a person's own policy usually has a daily cap and a limit on the number of days. Receipts and a log of calls with the adjuster help 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 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. An automobile 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 have bad faith laws for unreasonable claim handling. This is general information rather than legal advice, and no article can promise a particular result.