Has your car been damaged or totaled in an accident? The good news is that insurance companies are usually fair in dealing with the damage to your car. You probably don’t need an attorney to help you with that. But we know that it is an unfamiliar and stressful process so we’ve created this guide to help you through the process. Please contact us for a free consultation if you have any questions.
Tips on dealing with insurance adjusters
- Be an advocate for yourself. Most people aren’t used to the insurance claims process and negotiating with insurance adjusters and it can be stressful. Don’t be afraid to ask for more compensation for your car or more days with the rental car. The worst the insurance company can say is no!
- Remember that the squeaky wheel gets the grease so be polite but persistent. While it can be frustrating dealing with adjusters and delays, getting angry or yelling isn’t going to make them handle your claim quicker.
- If you don’t hear back from the insurance adjuster in a timely manner, call them again to follow up. If you continue to not hear back from the adjuster, call the general claims phone number and ask to speak to a manager or supervisor
- Make a written note of who you talked with and what you discussed. It will help you remember what to do and if there’s an issue later you’ll have a record of it.
- Keep in mind that all of your phone calls with the insurance company are likely recorded so don’t say anything you might regret later.
Contact the other driver’s insurance company
- You should have the other driver’s insurance information from the police officer or the police report. If you don’t, you can buy the police report on www.buycrash.com.
- Google the insurance company’s claims phone number. Call it and tell them you would like to report a claim involving their insured driver. They will give you a claim number and may give you the name and number of the claims adjuster. Write that down.
- Ask them to start the process of inspecting your car and getting you a rental car. Just say “I’d like to start the process of getting my car repaired and getting a rental car. What do we need to do to make that happen?”
Contact your own insurance company
- You also need to contact your own insurance company to let them know you’ve been in an accident.
- You need to do this even if the other driver’s insurance is going to repair your car because your insurance policy requires you to notify it of accidents. If you don’t notify them and something happens with the other driver’s insurance, your insurance company may deny your claim.
- Call your insurance agent or your insurance company’s claims line. Tell them you’ve been in an accident, it wasn’t your fault and that you just wanted to report it. Your insurance company will give you a claim number and may give you the name and number of the claims adjuster. Write that down.
When to go through your own insurance
- Most of the time, the other driver’s insurance will accept responsibility for the accident and take care of repairing your car and getting you a rental car in a timely manner.
- But if they don’t, your options are to wait for them or go through your own insurance. Many people don’t want to make a claim on their own policy because they’re worried it will make their rates go up and that’s a fair concern.
- If the other driver’s insurance denies the claim, you’ll definitely need to go through your insurance company.
Ask for a rental car
- Ask the insurance adjuster for a rental car. Say “can we start the process of getting me a rental car?”
- Usually they will send you to a rental car company they have a partnership with and they will handle paying for it.
- The insurance company should pay for a rental car until your car is repaired or, if your car is totaled, they pay you for your car. If you need the rental car for a couple more days, tell the adjuster why and ask.
- Sometimes there’s a delay in getting you a rental car and you may have to pay for your own while you wait for the insurance company to get you one. Ask the other driver’s insurance to reimburse you. However, they may not pay 100% of your costs because you didn’t go through their partner rental car company.
What is the insurance company required to pay for my car?
- The insurance company should pay to repair your car or, if it is totaled, pay you fair market value for it.
Can I choose my own car repair shop or do I have to go to the insurance company’s repair shop?
- Insurance companies often want you to take your car to their “preferred” or “partner” repair shop
- Georgia law gives you the right to choose where you want to have your car repaired and the insurance company cannot deny your claim because of that
- However, the insurance company is only going to pay for the amount that they determine it will cost to repair the car
- If the repair shop you choose is going to cost more, you can ask the insurance company to pay for it. If they do not, you will have to cover the difference yourself
What if my car needs additional work or is not repaired correctly?
- If your car is repaired but it’s not done incorrectly or there’s still an issue with it, let the insurance company know and ask them to handle the problem. They should take care of it.
When is my car considered totaled or a total loss?
- Insurance companies have their own rules on when they consider a car totaled or a total loss. They vary from company to company.
- Generally, if the cost to repair your car is anywhere from 60-80% of its value, the insurance company will consider your car totaled and pay you fair market value for it.
- For instance, your car is worth $25,000 and it will cost $20,000 to repair it. The repairs are 80% of the value of your car and the insurance company will consider it totaled.
- But if the repairs are $5,000, the insurance company will pay to repair it.
What is the fair market value of my car?
- The fair market value of your car is what a similar car in similar condition with similar features would sell for.
- Research Kelley Blue Book, Auto Trader, Edmunds, CarMax and your local dealerships to get an idea of the fair market value of your car.
What if I recently had work done on my car or had it repaired?
- If you recently had work done on your car or had it repaired, get those receipts to the insurance adjuster and ask that they include those in their offer. They should increase the offer to include those but probably won’t offer you 100% of the cost of the repairs.
Is the insurance company’s first offer their best offer?
- The insurance company’s first offer on your car is sometimes, but not always, their best offer.
- If you think the offer is fair market value, you can accept it.
- But if you think it’s low, don’t be afraid to ask for more.
- Give them three to five examples that you found after researching. Say “thank you for the offer. I am asking for $XXXX for my car because I think that’s fair market value based on these other cars.”
What if the offer for my car isn’t enough to pay off the loan?
- Sometimes the fair market value of your car is less than you owe the bank for it.
- If this happens, you probably have “gap insurance” through the bank or company that is financing your car loan.
- Gap insurance covers the difference between the fair market value of your car and the amount to pay off your loan
- Contact your bank or financing company and ask if you have gap insurance and let them know you will need to make a claim
What if the insurance company says my car is totaled but I want to get it repaired and keep it?
- If the insurance company says your car is totaled but you want to get it repaired and keep it, tell them you want to “keep salvage.”
- The insurance company will pay you for the fair market value of your car but they’ll take out the cost of “salvage,” which is the money they make selling it for parts or scrap metal.
- You’ll have to have the car rebuilt and then apply for a “rebuilt title” before you can legally drive it.
- You can read more about that process here: https://dor.georgia.gov/motor-vehicles/title-motor-vehicles/salvage-titles
Ask for diminished value
- A car that’s been damaged in an accident is worth less than one that has not. This is called “diminished value.”
- The more it costs to repair your car, the more diminished value it has.
- An older car that needs $1,000 worth of repairs has a very small diminished value claim and the insurance company may not offer anything at all. But a new truck that needs $25,000 worth of repair has a diminished value claim that’s worth pursuing.
- Once your car has been repaired, ask the insurance company to compensate you for its diminished value. Say “Can you please make me an offer for my car’s diminished value?”
- There’s no formula or calculator or one way to determine the diminished value of your car. If you don’t like the insurance company’s offer you typically need to hire a “diminished value appraiser” to pursue it further.