Auto Accident Property Damage Claims
AUTO ACCIDENT PROPERTY DAMAGE CLAIMS
by Jeffrey Allen Howard
I represent people who have been injured due to the negligence of others, particularly in auto accident cases. An issue that invariably arises in these situations is the matter of the repair or replacement of my client’s vehicle, or in our parlance, the Property Damage (PD) claim.
As a general rule I do not handle my clients’ PD claims. I can, but I generally don’t for several reasons. Most of the time, it’s too late; my clients come to me after the PD claim is resolved. When it’s not too late I still rarely get involved because I don’t always bring a lot of value to this issue; a vehicle is worth what it’s worth and it costs what it costs to repair a reparable vehicle, so these issues tend to take care of themselves.
When client just has too much on his or her plate to deal with the PD claim, I am happy to intervene or just coach them up if necessary. Here are a few tips I offer:
□ You have the right to have your vehicle worked on by the mechanic/body shop of your choice, so tell the adjuster if you have a preference.
□ If you’re having a dispute with the adjuster about what damage was pre-existing and what was caused by the accident, consider taking the vehicle to your mechanic to see if he can persuade them to see it your way.
□ If you’re continuing to have a dispute with the adjuster about a property damage issue and have collision coverage on your auto policy, you should consider making a claim with your carrier so the two insurance companies can fight about who’s right. The upside is you’ll get your car fixed likely in a more expedient manner and you can always attempt to get your deductible from the at-fault carrier.
□ Pay very close attention to where your vehicle is taken after the accident. In many cases where liability is disputed or the carrier is lagging, the vehicle may be taken to a storage facility and storage charges may be accruing daily. You should make every effort to get the insurance company to move the vehicle to somewhere where there will be no storage costs, either at your home or a facility they own. If the at-fault carrier is non-responsive, use your own carrier. If that is not available, consider having it towed home at your own expense. It will likely save you money in the long run and you can always ask for reimbursement later.
□ You should be paid the fair market value of your car if it is a total loss. A total loss is when the cost to repair the vehicle is 75% or greater than the value of the vehicle.
□ Use online resources like Kelly Blue Book and NADA to help value your care.
□ BUT what you get from these sites are not definitive figures! You should also look at private listings of similar vehicles to help buttress your figures with more data. The more listings you have, the more likely your average number accurately reflects fair market value.
□ Remember, you are not getting retail for your car! And you’re also not getting trade in value! What you are entitled to for a total loss if “fair market value” which is defined as what a willing buyer would pay a willing seller at that moment in time. That’s obviously a moving target, which is why resources like KBB and NADA are valuable to help you get a good target range for the value of your vehicle.
□ If your car is repaired and is not a total loss you may have a claim for diminished value. In other words, your car may be worth less since it was damaged. These are rare claims and are difficult to prove and sometimes expensive to pursue. These do not generally fly very well when you have an older car that is damaged. But if you have a newer car with low mileage, you might have something. If you think you have one of these, call me to discuss it. This is one of the rare instances where my involvement in your property damage claim can make a difference. There is an argument that these claims must be made within 30 days of getting your vehicle back, so make sure you act quickly! The statute is actually quite vague about that and you might have longer, but if you get the claim filed within 30 days, you don’t have to worry about it.
These are just a few helpful hints to help you navigate the wacky world of property damage claims. If you have any questions I’m happy to talk with you about them, but remember to keep it all in perspective; your health is the important part of this claim, not your car. Call me if you need me! 919-929-2992.