If you have been in an accident, including a hit-and-run accident, and your car got totally damaged, there are a few things you must know about the insurance claim process. By knowing certain things, you can get the most for your car damage.
What Is Part of Every Motor Insurance Claim?
There are two parts to every car crash insurance claim. Firstly, you might be dealing with a personal injury claim, which is where you have been injured, and the insurance adjuster is assigned to handle your case and rightfully determine the value of the harm caused to you. Now, you should know that you should never try to handle or negotiate a personal injury claim on your own.
Why, you might ask? Well, the answer is that it is the goal of every insurance company to pay you as little as possible, which means there is a higher chance that you will be manipulated and taken advantage of for everything that you say every single time.
So, make sure to hire an attorney, such as a personal injury attorney, as with the help of an attorney; you can ensure that everyone is held accountable, including the insurance company.
Property Damage Claim
Apart from the personal injury claim, you also have the property damage claim, which refers to the damage to the car itself. In case of car damage, the insurance adjuster who is assigned to the case will assess the case and determine whether the car is repairable or totaled. On that note, there are several things you must know so that you can effectively settle with the insurance adjuster to ensure that you get the most coverage for your damaged car.
How to Get the Most of Insurance If Your Car is Repairable
If your car is repairable, you must tell both the car mechanic and the insurance adjuster that you insist on having original equipment manufactured parts, which is also referred to as OEM. By doing so, you will not only ensure that your car is being fixed with the parts that are made by the manufacturer but also potentially increase the cost of repair.
The reason why you want to do this is that if you have been injured due to the crash, getting the car repaired costs over two thousand dollars is incredibly important. The reason for this is that some insurance companies will take the position that no one can be hurt that badly if the property damage is less than two thousand dollars.
Make Sure That the Claim is Worth Over Two Thousand Dollars
Any claim that is under two thousand dollars worth is typically treated very aggressively by the insurance company. They will push very hard to insist that the value of your claim is low because the cost of repairs is low.
Nonetheless, the physical appearance of the car, even if it appears like the car has been barely damaged, has absolutely no correlation with how badly a person can be injured in a car crash or in a hit-and-run crash, which seemingly, by all appearances, wasn’t that bad.
Contrary to what the insurance company wants you to believe or think, even if the car has only gotten a few scratches, the victim can be seriously and permanently injured, even killed, in low-speed crashes. So, you want to do everything you can to avoid getting categorized as a “low-value” claim.
Understanding Diminution in Value Claim
If you have gotten in an accident where you just got a new car and your vehicle is a newer model and it has sustained more than five thousand dollars in damage – you might be able to make a diminution in value claim. What does this mean, you ask? Well, a diminution in value claim refers to the aspect that even if the vehicle meets the highest quality standards, potential car buyers are unwilling to pay as much for a car that they know has been in an accident and, hence, previously damaged.
In such a scenario, you want to make sure that you are paid for that loss, and you want to be paid the diminished value of your property because it was damaged.
What is the Formula Used
On that note, diminution in value is defined as the essential difference between what the pre-crash car was worth and the market value of the post-repair car. Most insurance companies use a calculator called the “17c formula” to determine the value of post-accident cars. However, every state has its own laws on this subject, which is why you must check with your respective state to know what the law says on diminution.
What to Do If Your Car is Totaled in An Accident
Now, if your car is totaled and not repairable, you must make sure that you are being paid the actual cash value of your car. Understandably, you need to get a good lawyer on board to help you with what is needed. If your car has been totaled in a hit-and-run accident, you need to work closely with a hit-and-run attorney, such as the Las Vegas Hit and Run Accident Lawyer, if you are from Las Vegas. The attorney can help you understand the insurance policy and make a correct estimate regarding what you are owed.
The attorney will also help negotiate a settlement if the at-fault driver is traced and liability has been established. On that note, if you don’t reach a fair settlement and you need to sue the at-fault driver and their insurance company for totaling your car, the attorney can help you handle your lawsuit from the very start to finish.
Understanding Actual Cash Value – ACV
Actual cash value is also known as ACV, and it refers to the replacement cost of your car minus the deductible that you pay for accident or comprehensive insurance. The actual cash value is determined by several things, such as the age and mileage of the car. ACV is also determined by the car’s history of collisions and signs of wear and tear. The car’s actual cash value will also be based on the car’s year, make, and model that it is actually selling for in your state or location.
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Final Thoughts
Now, you know that you aren’t necessarily stuck with what the insurance adjuster tells you but that there are several things you can do to get the most out of your car. It all comes down to doing a little bit of research and getting a lawyer by your side as soon as possible.