Working with insurance companies after a car accident can be a complicated and frustrating process. When a car is badly damaged, many insurance adjusters will consider it a “total loss” and begin the settlement process. Oftentimes, adjusters will try to settle on a replacement vehicle that the accident victim feels is an unfair substitute. If your car is damaged, but repairable, you have certain rights and privileges the adjuster may fail to mention.
If you have been in an accident and are working with the insurance company, it is important to have proper knowledge of the situation to avoid an unfair settlement. The following tips can help ensure that you receive a proper settlement:
1. Insurance papers can be extremely technical and confusing. Before you sign any papers, make sure you fully understand the substance of the agreement. Research terminology or phrases you do not understand. Also, do not be afraid to contact your insurance company and ask any questions you may have pertaining to the documents they want you to sign. If you sign the papers too soon, you may jeopardize your chances of receiving a fair property damage claim.
2. If your car is no longer drivable after the accident, your insurance company or the at-fault driver’s insurance company can provide you with a rental car. (We recommend against purchasing the rental company’s car insurance coverage. Most insurance companies will not pay for this additional coverage.) The insurance company may try to put you in a smaller rental car in an attempt to save money. Don’t hesitate to ask them to provide you with a rental car that is the same size as the vehicle you were driving at the time of the accident. In addition, if you do not use a rental car for a period of time after the accident, you may be entitled to monetary compensation from your insurance company ranging from $15 to $25 dollars for each day you went without a rental car.
3. Research the value of your car at the time of the accident using your local classifieds or websites such as craigslist.com. Insurance companies tend to value your car by finding similar vehicles as close to your home as possible. It is important that you take the time to research the true value of your vehicle at the time of the accident. Browse the internet and contact local auto dealers to compare the year, make, model and condition of your vehicle with other cars on the market. The insurance company will give greatest weight to the vehicles that are closest to the city in which you live.
You are not required to accept the adjuster’s first settlement offer, especially if you think it is less valuable than your previous vehicle. If this happens, simply counter-offer with information about other vehicles you found in your own research. You can also ask the insurance company to provide documentation with details about how they valued the vehicle. Do not hesitate to request this information. By obtaining this information, you will be able to ensure that the adjuster gave you credit for every upgrade or after-market feature in your vehicle.
4. Do not keep the rental car longer than the insurance company permits. If you do so, you may be held responsible for additional charges.
5. Even though the accident was not your fault, your own insurance company may offer to handle the property damage claim. This has pros and cons. Typically, your insurance company can handle the claim much faster than the at-fault driver’s insurance company can. The at-fault driver’s insurance company will not provide you with a rental car or work on the body damage until they’ve spoken with their insured driver or obtained a copy of the full police report. Your own insurance company, however, is able to move forward without this information, but they may require you to pay your deductible when you pick up your car. This can be hard for some people while also trying to pay for medical treatment after the accident. Rest assured that once the at-fault driver’s insurance company accepts responsibility for the accident, they will reimburse your insurance company for the property damage claim and your deductible will be returned.
6. If your car was not new at the time of the accident, the insurance company has a right to repair the vehicle with used parts. However, the used parts must be comparable in quality and age. Even though the part is used, the repair shop will use a part from the same manufacturer, same year and of the same quality as the original part. Used parts come from a nationally based locating system and can arrive in 1-2 business days. On the other hand, new parts typically take weeks before being delivered, because they come from the manufacturer or dealerships.
7. Many times throughout the repair process, the body shop will discover additional damage that was not initially approved by the insurance company. When this happens, the body shop will document the additional damage by taking photographs or asking the insurance adjuster to come to the body shop and inspect the damage. Unless the insurance company can prove that the additional damage is not accident-related, they will be obligated to repair it. If the insurance company refuses to repair the additional damage, you should take the car to other body shops. Have the mechanics provide written documentation stating their opinions that the additional damage must be accident-related, because it is not the type of damage that is normally caused by regular wear and tear.
8. If you are unhappy with the repair work done on the vehicle, it is best to return to the original body shop and explain why you are unhappy. Most body shops will do everything in their power to make the customer happy. If the body shop refuses to address your concerns, take the vehicle to other local body shops and have them document what should have been done by the shop, but was not. You can then provide the insurance company with this information.
9. Finally, many people wonder if they can take the property damage claim to small claims court. While this may be an option, be extremely careful and consult with an attorney before pursuing this course of action, as it has the potential to completely wipe out your ability to make an injury claim if you were hurt in the accident!