Diminished Value and Other Car Crash Insurance Issues

What to Expect From the Insurance Adjuster After a Car Accident

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 reduce the value of a claim if they go unnoticed. Knowing what to expect is one reason people talk with a car accident lawyer before signing anything.

Recorded statements and medical authorizations

The other driver's insurer may call within days and ask for a recorded statement. Usually there is no duty to give one to the other driver's insurer, although a person's own policy may require cooperation with their own insurer. Comments made while hurting or medicated can later be used to dispute https://deanpatq247.solsticebrief.com/posts/rear-end-and-t-bone-collisions-how-fault-is-decided the claim. Adjusters sometimes send broad medical authorizations that open records unrelated to the crash. A car accident attorney usually limits what is shared to records related to the crash.

Common settlement practices

An early settlement offer can 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.

Property damage claims

The property damage part of a claim usually resolves sooner than the injury part. If the car can be repaired, the insurer writes an estimate, and the repair shop may find hidden damage once work begins. Rules on aftermarket parts depend 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 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 what is still owed on a loan.

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. Keeping receipts and notes of each call with the adjuster helps support the claim.

Diminished 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 first-party claims under one's own policy, which may exclude diminished value. A written appraisal and the vehicle history report can 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 a particular result.