Property Damage
Property Damage refers to damage done to an automobile contents in a vehicle.
What
if they say my vehicle is “totaled”
Most problems occur when the insurance company classifies
your vehicle as a total. In such cases, the insurance company
owes you the Fair Market Value of your car. This means that they
owe you what it would take to replace your vehicle with the same
like-kind, and quality. This does not mean that they owe you what
you “owe” on your vehicle. Often times, if one has
recently purchased a vehicle you may be “upside down”
in the vehicle – meaning you owe more than the vehicle is
worth. If that is your situation, you should attempt to get the
settlement offer from the insurance company as close to what you
owe as possible. It is not always possible to get your car paid
off, as the insurance company is only required to pay you the
reasonable value of your vehicle at the time of the accident.
To help you determine your vehicle’s value if the insurance company says your vehicle is totaled.
Before you try to negotiate with the insurance company or before
we attempt to settle your property damage claim, do these things:
- If you have access to the Internet, the following
sites will ask specifics (mileage, power locks, am/fm radio,
CD player, etc) about your vehicle to help determine the value:
IntelliChoice.com and/or NADA.com.
- Also, go to autotrader.com and search for a
vehicle within a 50-100 mile radius that is the same year, make,
and model as yours. This will tell you what a vehicle like yours
is selling for in this market.
- If you do not have access to the internet,
or, in addition to your research on the internet, get a Sunday
newspaper or printed copy of the AutoTrader and look for vehicles
the same year, make, and model as yours. This, again, will tell
you what a vehicle like yours is selling for in this market.
- Keep any documentation that you find. Print
information from the Internet and keep copies from the newspaper
and AutoTrader so that you have something to show the insurance
company.
- If you have had any upgrades or repairs done
to your vehicle in the past year or less gather those receipts
together to present to the insurance company.
Remember that such things as mileage, paint condition,
interior condition, age of tires, etc determine your vehicle’s
value. The insurance company will be looking at these things when
they make you an offer, so take these into consideration as you
come up with the value you think your vehicle is worth.
To come up with their value of your vehicle, the
insurance company uses a data base set up by the insurance companies
that typically values vehicles lower than you will find elsewhere.
This system is connected with car lots and other auto sales businesses.
Typically, the reports you will receive from them, if they send
it to you, will show a lower amount than you are requesting.
Make sure to keep all appointments you may have
with any adjuster or at the adjuster’s inspection facility.
The insurance company or one of their representatives will need
to see your vehicle before any repairs are made. You have the
right to have your vehicle repaired at a place of your choice;
however, you should obtain at least two estimates and be willing
to settle the property damage for the lower of those two estimates
or the average of the estimates.
Rental
Car
Discuss your need of a rental vehicle with the insurance company.
Once liability is determined as the fault of the other party,
the insurance company should provide you a rental vehicle that
is comparable to your vehicle. If your claim was on a compact
car – you will be put in a compact rental. If your claim
involved a larger car – you should get a comparable sized vehicle. The insurance company owes you the cost
of your rental during the time your vehicle is being repaired
or until they make you an offer if your vehicle is a “total”.
Once they make you an offer on your vehicle, the insurance company
will be ready for you to return your rental immediately. You may
have to negotiate with them if you need the rental an additional
day or two. They will probably not be willing to pay for the rental
vehicle much beyond that.
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Miscellaneous
expenses
If you have any out-of-pocket expenses or bills for things such
as towing, vehicle storage, etc. keep copies of these invoices
or proof of payment.
Settling
the property damage claim
If there is a lien on the vehicle, either by a bank or other institution,
or a person who loaned you money for the car, or if you have put
the car up as collateral for a loan or other purpose, the insurance
company is obligated to issue the check in your name and lien
holder’s name. You will be asked to provide a copy of the
title to the insurance company so that they can verify that you
are the titled owner and whether or not there is a lien.
If your vehicle is being repaired and there is
a lien, the check will be made out to you and the body shop’s
name or your name and the lien holder’s name. If your vehicle
is totaled, the check will be made out to you and the lien holder.
If you have a “clean” title, meaning
there is no loan on the vehicle, the check will be made out to
you only.
If your vehicle is categorized as “totaled”,
which means the body shop has given you the estimate as to how
much it will cost to repair it and the insurance company has advised
that they want to categorize the vehicle as totaled, this means
that they will give you a settlement amount and actually buy the
vehicle from you, or they will pay you the Fair Market Value of
the car minus the salvage value.
Many cars can be totaled but are still drivable.
Some clients take the option of retaining their vehicle and accepting
an amount for the property damage and deducting any amount their
vehicle may still have, which allows them to continue to drive
the car. Our recommendation is that unless the car is drivable
and street worthy, or unless you yourself are able to repair the
car, it is better to allow the insurance company to take the salvage.
This is based primarily on the fact that some of our clients have
decided to keep the salvage, only later to decide that they no
longer wanted the salvage. Once the property damage has been settled,
the insurance company is no longer willing to come back and buy
back your vehicle. At that point you have to attempt to sell the
salvage yourself.
When attempting to settle your property damage
claim, do not mention anything regarding your bodily injury. Be
friendly, but do not divulge too much information
about the case. Do not discuss “liability”, which
means who was at fault in the accident. The insurance company
may advise that they are only going to pay you half of the value
of the vehicle because they feel that you were partially at fault for
the accident. If this occurs, notify our office immediately.
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If
you cannot reach an agreement on property damage, then
notify our office and we will attempt to settle it. If we are
unable to settle it, then our only option is to add your property
damage claim with your bodily injury claim if you decide to file suit.
The reason for this is that the law is structured so that there
cannot be multiple trials regarding the same accident; therefore,
you can’t file an action just for property damage and then
later file an action for bodily injury. Both claims need to be included
in the same lawsuit. The drawback is that you typically don’t
file a bodily injury lawsuit until after treatment has been completed
or you have reached maximum medical improvement and no further
treatment will be beneficial for you.
Once all medical treatment is completed or you
have reached maximum medical improvement, we obtain all the medical
records and prepare a settlement package to compensate you for
all of your injuries, medical bills, and other damages you may
have experienced.
If you should have any questions regarding your
property damage claim or any other matter please do not hesitate
to call us. Thank you for allowing Sullivent Law Firm to handle your case for you.
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