Depending on the circumstances, including the law in your state, your property damage claim will include some of these items:
We'll walk you through each item and explain what you're entitled to receive. At the same time, we'll discuss why valuation disputes might arise, and how you can respond when the insurance company tries to cut corners or save some money at your expense.
First things first. If you're like most people, you'll need a rental car to drive while your car is being repaired, or while you haggle with the insurance company over the value of your totaled car. There are two sources you can look to for payment.
The at-fault driver's insurance company. If the other driver's insurance company is paying to repair or replace your car under their policyholder's liability insurance, the insurer must also provide you with a rental car. The company likely will tell you its policy is to pay some arbitrary amount per day or per week for a rental (for example, $29 dollars per day or $200 per week) and present it to you as a take-it-or-leave-it proposition.
Don't be shy about negotiating. The insurance adjuster knows that you're probably in dire need of transportation, and they're sure you'll simply take the offer and rent the smallest, cheapest tin can on the rental company's lot. You're entitled to a rental car that's at least reasonably comparable in size and features to your vehicle. Maybe you need a larger car because of work requirements or because you have kids in car seats, or for some other good reason. Fight for what you need.
If the insurance adjuster won't compromise, tell them you'll simply pay the difference between their offer and the cost of a reasonable rental, and you'll add the difference to the damages you're claiming from their insured. The company might decide its cheaper to pay you a bit more than to take a chance on whatever you decide to rent. But if that's your strategy, don't sign a release of your property damage claim until all of your claims are fully resolved. If you do, you waive your right to claim the additional rental amount.
Your own insurance company. Be sure to notify your own auto insurer after an accident, even one that wasn't your fault. Your insurance policy requires it, and if you don't, the company might use your failure to report as a reason to deny later claims.
If you have rental reimbursement coverage as part of your auto insurance (you should—it's cheap and if you need it, it can be a lifesaver), you can make a claim under your policy for a rental car. There's no need to haggle over the amount when you're dealing with your own insurer. When you buy rental reimbursement insurance, you buy a specific amount of daily coverage, and it's limited to a certain number of days.
For example, you might be entitled to $45 per day up to a maximum of 30 days. Some insurance companies simply sell you a fixed amount of coverage—for example, $1,500—and leave it up to you to decide how to spend it.
What happens if you were to blame for the accident and you don't have rental reimbursement insurance? You pay for the rental car, or do without.
Once you're squared away with a rental car, you can turn your attention to getting your car repaired. You've got a couple of options here, insurance-wise. First, if the wreck was the fault of another insured driver, you can make a claim under that driver's auto policy. If you were at fault, the other driver was uninsured, or you simply can't wait for the time it will take to negotiate with the other driver's insurer, you can bring a claim under your own collision insurance—if you have it.
The process begins with one or more repair estimates. A lot can go wrong here, so make sure you know what you're doing. Most importantly, don't sign off on any estimate until you're certain your car will be fully repaired to your satisfaction. Be on the lookout for:
The insurance company might ask you to agree to its own estimate, rather than one prepared by a qualified repair shop. There's no way you can know if that estimate is realistic. Does it reflect the actual cost to get the work done competently? You want estimates from qualified, bona fide repair shops.
Demand that the adjuster guarantee that a qualified local repair shop will completely and expertly repair your car for the amount of the insurer's estimate. Use the word "guarantee" and insist that it be put in writing. See what reaction you get. If the adjuster protests that you're being unreasonable, you'll know that their estimate is just a whistle in the wind.
Make sure that the estimate is thorough and detailed, itemized with all parts, labor, and taxes. Don't accept an estimate made by someone who gave your car a quick once over and came up with ballpark numbers. Unless the repair estimate has been carefully itemized and can be compared apples-to-apples with an estimate you get, it's too vague or incomplete to be taken seriously.
If your car is fairly new, insist that all repairs be done by a factory-authorized dealer. The dealer's repair technicians have the best understanding of the replacement parts you need, know how to source those parts, and are familiar with the labor needed to make complete and proper repairs. If your car is older, you still, of course, want all the work done by qualified repair technicians.
Pay attention to the kind of parts that are used to make your repairs. Your strong preference should be for factory-authorized replacement parts, if they're available. If the repairs are being paid for by the other driver's insurance, you should insist that any estimate quotes only those authentic parts.
If you're having the repairs done under your own collision coverage, check your policy. It likely authorizes the insurance company to choose, in its sole discretion, between factory-authorized replacement parts and aftermarket (refurbished or reconditioned) parts. Since aftermarket parts are almost certain to be cheaper, you can guess which parts the insurance company will choose. In that event, the best you can hope for is that the parts are covered by some kind of replacement guarantee for at least a limited period of time.
When the estimated cost to repair your car is at least 75% to 85% of your car's value, most insurance companies will declare it a total loss. Should that happen, the insurance company typically pays you the actual cash value (ACV) of your car before it was destroyed.
Determining your car's ACV. The ACV of your auto should be what comparable cars are selling for on the open market. In theory, you should be able to take your ACV settlement and use the money to buy a vehicle that's substantially similar to the one you had. But it doesn't always work out that way.
When it makes you a settlement offer, the insurance company might rely on price information it gets from a company it hires to provide ACV data. It's a competitive business, and lots of firms vie for insurance company work. Do you think insurance companies tend to hire companies that come up with higher prices for totaled cars, or lower prices? The question pretty much answers itself.
Do your homework and research the value of your totaled car. Check for values of comparable autos at reputable online services such as Kelley Blue Book or Edmunds. Look in the paper and online for similar cars for sale in your area. Admittedly, this only tells you about asking prices, not selling prices. But this information can be helpful in determining ACV.
Armed with that information, you're in a better position to negotiate with the insurance company.
Options if you can't agree on ACV. If you're not able to agree on your vehicle's ACV, you do have options. Those options depend on whether you're negotiating with your insurance company or the at-fault driver's insurer.
Dealing with your insurance company. Your insurance policy's collision insurance probably includes an "appraisal clause." You and your auto insurer submit the appraisal to one or more independent appraisers who determine the ACV of your car. Check your policy for details.
Dealing with the at-fault driver's insurance company. When you reach an impasse with the other driver's insurance company, you have the option to file a lawsuit. The problem, of course, is that lawsuits take time and they're expensive. If you can't afford to get another car without the money from your totaled vehicle settlement, then as a practical matter, you may not be in a good position to hold out while a court case decides whose appraisal is right. Even if you sue in small claims court, the time you'll wait to get a court decision will still be measured in months, not days or weeks.
What if other personal property was damaged or destroyed in the collision? For example, your golf clubs might have been mangled when you were rear-ended. Or your cell phone or laptop might have been tossed around the inside of your car and damaged.
Dealing with your insurance company. Check your policy. It probably limits the insurer's responsibility for other personal property to a fixed amount (for example, $1,500). Certain kinds of property might be excluded from coverage.
Dealing with the at-fault driver's insurance company. The other driver's auto insurer must pay to repair the property or, if it can't be repaired, must pay you its fair market value when it was destroyed. Note that market value is probably less than replacement cost.
If your vehicle wasn't drivable after the wreck, or if you had to have it stored while awaiting repairs or an ACV settlement, you've probably incurred towing and storage charges. These charges can add up quickly.
Dealing with your insurance company. If you have towing and storage coverage, your company likely will pay a fixed amount per day for storage, up to a maximum amount. There's probably a cap on the towing charge as well.
Dealing with the at-fault driver's insurance company. Towing and storage charges are treated as out-of-pocket expenses that will be included with the rest of your damages. The responsible driver's auto insurer must compensate you for these losses.
A diminished value or reduction in value claim happens when, even after your vehicle is repaired, it's worth less than what it was worth before being damaged. Diminished value claims are most common when your car is fairly new. The idea is simple: A reasonable buyer won't pay as much for a vehicle that's been extensively damaged as for the same vehicle without prior damage.
In most states, you're only allowed to make a diminished value claim against the other driver's insurance company, not against your own auto insurer. The value of this claim equals the difference between what your car's undamaged fair market value would have been and its actual post-repair fair market value.
The rules for property damage claims can be complicated and difficult to apply in specific cases. If there's no dispute over liability and the amount of your property damage is fairly small, you might be able to get a fair settlement on your own. But if you're fighting with the other driver's insurance company (or your own) about significant property damage, you need experienced counsel on your side. The insurance company will be represented by a lawyer. To make it a fair fight, you should be, too.
Here's how to find an experienced car accident lawyer to help you with your property damage claim.
Every car insurance company handles things a bit differently, but when you're making an insurance claim for vehicle damage after a car accident, the process usually looks like this:
If it's pretty clear that the accident was the other driver's fault, and they have property damage liability insurance, you can file a third party claim through their car insurance company. If you were at fault, or you just want a quicker, cleaner claim process, you can file a claim through your own collision coverage, if you have it.
In either scenario, getting the claim process started usually means simply making a phone call to the insurance company's claims division, or utilizing the company's claim-filing app.
The insurance company might recommend one or two local auto shops you can use to get a repair estimate, or you can go it alone and choose your own shop. Some insurance companies (like Geico) like to get an insurance adjuster involved in the vehicle inspection/repair estimate process.
Depending on the insurance company, and your preferences, they may send you a check for the amount of the repairs (as detailed in the estimate), or they might pay the shop directly for the work. Remember, if they send you a check, you're not required to use it to get your car fixed.
When the repair estimate process goes smoothly, the work gets done quickly and you get on with your life. But there are a few things to keep in mind to make sure you get your vehicle fixed the right way, as soon as possible, and with no surprises.
You don't want to cut corners, especially since the goal here is to have the insurance company (not you) pay for all necessary repairs, or for the "actual cash value" if your vehicle is declared a total loss.
Seek out an estimate for repairing vehicle damage —or any other kind of property damage—only from places where you would actually go to have the repair work done.
Make sure that the repair shop is properly licensed and registered as required in your state, and that the estimate quoted will be an amount sufficient to repair the property to the highest standards.
If you just get the easiest estimate—taking your car to the corner gas station, for example—you may find that the amount quoted will not be enough to cover the repairs you eventually have done at a quality repair shop.
Don't allow an insurance company’s inspection or estimates to delay repairs unnecessarily. If the insurance company doesn't inspect the property within a week or so after the accident, and you've given the insurer a reasonable opportunity to do so, and if you already have two independent written estimates, then there's no reason to delay getting your property repaired if you can afford to pay from your own pocket.
The strategy here is to get the repairs done and then demand reimbursement from the insurance company. Of course, if you get the repairs at the shop that gave the highest estimate, the insurance company might agree to reimburse you only for a lower estimate. Also, be aware that getting car repairs before you agree on an amount removes one of the incentives for the insurance company to settle quickly. Once you have your car back, the insurance company no longer has to pay for alternative transportation (a rental car, for example).
If a third-party insurance adjuster (from the other driver's insurance company) tells you the company has a repair shop that will fix your car for substantially less than the estimate you got, be cautious. Insurance companies sometimes have sweetheart deals with certain repair shops that work for the insurance company in exchange for lots of referrals. But that doesn’t guarantee that the inspection for damage is thorough or that the work done is good quality.
You should always get your own inspections and estimates from independent repair shops. If two or three independent estimates are higher than the one insurance company estimate, the insurance company’s estimate is probably a poor one. Repairs should be made only by a shop chosen by the car owner, regardless of how much money the car owner receives in settlement.
According to Geico, the vehicle damage claim process can be resolved in as little as 48 hours, but it's safe to say that's not exactly the norm.
As with most vehicle damage claim-related issues after a car accident, a big consideration here is whether:
If your car accident resulted in vehicle damage only (you weren't injured), it usually makes sense to handle the insurance claim process on your own, especially if you're proceeding through your own insurance company.
For more tips on getting your vehicle repaired the right way after a car accident, get How to Win Your Personal Injury Claim by Joseph L. Matthews (Nolo).
Of course, the aftermath of a car accident can be more complicated than a quick insurance claim for vehicle damage. If your accident also resulted in injuries, or if you're running into any kind of conflict with the insurance company, it might make sense to discuss your situation with an experienced legal professional. Learn more about how a car accident attorney can help. You can also use the tools on this page to connect with a lawyer in your area.
When you file a claim with another person's insurance company, usually under their liability coverage, that's considered a "third party" insurance claim. These kinds of claims are so named because, as someone who's not one of the two primary parties in the insurer-insured relationship, you're considered an outside (or third) party.
If you suffer injuries and/or incur vehicle damage in a car accident, filing a third-party car insurance claim will usually be an option when:
After you report the accident to your own car insurance company, they might help you get a third-party claim started with the other driver’s insurance company, and they may even facilitate things, at least initially. If your insurance company doesn't offer to help, getting a third-party claim started on your own isn't usually a big deal.
The other driver's insurance company will most likely have an online claim portal or mobile app you can use to initiate the claim process.
At the very least, an online search for the other driver's car insurance company will bring up a phone number you can call. From there, an insurance company representative can let you know how to proceed with a third-party claim.
However you initiate the process, starting the claim usually means providing some basic information about yourself and the accident, usually including:
Things are likely to proceed over email from there, at least initially.
Of course, even at this early stage, you might turn your claim over to an experienced car accident lawyer and let them figure out the right approach to getting the best result.
When you’re filing a third-party claim, you’ll need to work with (and not against) the insurance adjuster, to some extent. After all, you’re asking the insurance company to compensate you for your car accident-related losses. Filing the claim and then refusing to cooperate with the adjuster’s investigation and evaluation is sure to guarantee a bad outcome.
While it’s important to cooperate with the adjuster, there are limits. You’re under no obligation to give in to an unacceptable settlement demand, or to continue to try to negotiate a fair result if it seems like the adjuster just isn’t taking you or your claim seriously.
Let's take a closer look at some of the main points of your car accident claim that the insurance adjuster is going to be concerned with, and some key steps in the process.
As the term for the coverage suggests, a third-party claim filed under another driver’s liability insurance coverage requires that the other driver be, in fact, liable (at fault) for the car accident. In some situations, the other driver’s insurance company will accept that its insured was liable for the crash. That’s especially true if:
If fault for the accident isn’t clear, and you’re getting significant pushback from the other driver’s insurance company, it might make sense to discuss your situation with an experienced car accident lawyer.
When you’ve been injured in a car accident and you file a third-party claim with the other driver’s insurance company, the insurance adjuster handling your claim isn’t just going to take your word for it when it comes to the extent of your injuries and other effects of the crash.
You need to document and substantiate every component of your damages, to the extent possible, and you’ll need to be responsive to the adjuster's requests for things like:
Those records and that proof must relate to your claim, of course. If the adjuster is asking to see all of your medical records from the past five years, that’s an inappropriate request that you can and should refuse.
All of this establishing and substantiating starts at the scene of the accident and can continue for months afterward. Learn more about:
It’s quite possible that after a car accident that looks like it was the other driver’s fault, your only path to getting compensation for your injuries and other losses will be a third-party claim, at least when it comes to insurance coverage.
For example, in many states, vehicle owners are only required to carry liability car insurance. This kind of insurance only kicks in when the insured vehicle owner causes a car accident, and other people (drivers, passengers, pedestrians, etc.) are injured or have their property (i.e. their vehicle) damaged. In this scenario, if the insured vehicle owner gets into an accident that’s someone else’s fault, their own car insurance won’t apply at all.
It’s a different story in no-fault car insurance states, and when the insured vehicle owner has other kinds of insurance coverage beyond just liability. With the following kinds of coverage, and depending on the circumstances, you might have the option of filing a claim with your own insurance company, or a third-party claim with the other driver’s insurer (or both):
Not right off the bat, no. In a no-fault car insurance state, when two drivers are involved and injured in a car accident, they’ll typically:
That’s the basis of no-fault car insurance schemes, after all, to remove the liability question from the equation, and streamline the claim process by having drivers turn to their own car insurance coverage to get compensation for car accident-related losses.
Depending on the no-fault state's specific rules, a third-party claim against the at-fault driver's liability insurance coverage (assuming they have such coverage) is only possible if:
Learn more about how no-fault car insurance works.
It’s important to note that vehicle damage is a separate issue in no-fault car insurance states, since no-fault/PIP coverage doesn’t usually apply to property damage of any kind. So a third-party car insurance claim for vehicle damage might be an option in no-fault states, when the other driver caused your accident.
There's a chance that things will go relatively smoothly with the insurance adjuster, and they'll come to the negotiation table with a fair settlement offer. But remember, the adjuster's job is to pay out as little as possible on claims like yours. And that often translates into some serious pushback on key issues like fault for the accident, the nature and extent of your injuries, potential pre-existing health issues, and even your credibility.
Perhaps the best way to insulate yourself from the potentially combative nature of the car accident claim process—while hopefully ensuring the best result—is to turn the matter over to an experienced lawyer.
If you're making a third-party car insurance claim after a car accident, there's really only one reason you'd consider filing a car accident lawsuit, but it's a big one: The insurance company isn't coming to the settlement negotiation table with a satisfactory offer. That could be for any number of reasons (whether from the insurance company's point of view, or yours), including:
Technically, not much is different. Largely the same categories of compensable losses ("damages") are available in an insurance claim and in a lawsuit. But there's more at stake. Taking a car accident case to court means escalating things for all parties involved:
If you're thinking it's going to be necessary to take your car accident case to court in order to get a satisfactory result, this is probably the point where it makes sense to discuss your situation with an experienced lawyer.
Handling your own insurance claim is one thing. A lawsuit is a completely different story. You'll need to prepare legal documents, comply with court filing rules, and start putting your best case together. And that's before the litigation process really kicks off. There will be depositions, document requests, interrogatories, and court appearances aplenty. At some point, settlement talks will intensify, and that's when negotiation skills are crucial. This is all familiar ground for an experienced attorney.
It could be that you've tried to resolve your car accident case yourself by getting the third-party car insurance claim process started, but for whatever reason you haven't received a fair settlement offer from the insurance adjuster.
Or maybe you've read this far and decided that undertaking the process on your own doesn't make sense for you. Whatever your circumstances, it's usually a wise move to consider putting your car accident claim in the hands of an experienced legal professional.
Learn more about:
You can also connect with a car accident lawyer in your area directly from this page for free.
If your car, truck, or other kind of motor vehicle has been damaged in any kind of accident, the first thing to know is that any insurance company—whether it's your own insurer or the other (at-fault) driver's—is only required to pay up to the value of your vehicle at the time of the accident (also known as "actual cash value").
If you've received a repair estimate or two after a car accident and it looks like repair costs will exceed the value of your car, the insurer will often:
Remember that with any type of property damage claim, the value of the claim has nothing to do with how much you originally paid for the property. And keep in mind that whichever insurance company ends up bearing financial responsibility for the vehicle damage portion of your car accident losses, that insurer will only pay for repairs/replacement of your vehicle up to policy limits.
For example, if the other driver was at fault and caused $10,000 of vehicle damage to your car, but has only $5,000 of property damage coverage, that driver's insurer will only pay $5,000 toward your repair costs.
Get the basics on how car insurance coverage works after an accident.
If the other driver was at fault for your car accident, you probably have the option of filing a claim with that person's insurance company (assuming they have liability property damage or other relevant coverage) in order to get your car repaired or replaced. This is known as a "third party" insurance claim. Learn more about making a third-party insurance claim after a car accident.
Collision coverage ensures that you will be reimbursed for your vehicle damage if the other driver didn't have enough insurance, or if you were at fault for the accident. If the other driver was at fault and had enough insurance coverage, you wouldn't typically make a claim against your own insurance policy’s collision coverage.
Comprehensive coverage will pay for damage caused by something other than a collision—like weather, fires, and falling tree branches. It also covers theft, vandalism, and (sometimes) accidents involving animals.
Note that if your car if another driver hits your parked car, you could make a claim against that driver's liability policy, or under your own collision coverage, if you have it. Remember that comprehensive coverage doesn't apply to any kind of collision, including parking lot hit-and-run incidents.
If you caused your own vehicle’s damage—by driving off the road or running into a tree or fence, for example—you would either have to pay for the damage yourself or make a claim against your own policy’s collision coverage, if you have it.
If the damage isn't extensive, you might want to pay out of pocket for repairs because making a claim against your own policy's coverage might raise your car insurance premium, and cost you more money in the long run.
Regardless of whose insurance company is responsible for paying your repair costs, the first thing that you have to do is report the accident and get the car insurance claim process started.
After that, the insurer will usually have your car inspected. If the car is drivable, the insurer might ask you to bring it to a drive-through inspection station. If the car is not drivable, the insurer will usually have an inspector come to wherever the car is located.
The insurer will then come up with an estimate of the damages, which may or may not be enough to pay for the repairs. Although the insurer might recommend that you bring the car to a mechanic of its choice, you always have the right to use your preferred mechanic.
Once you get the insurer’s estimate, you may want to bring your car to your mechanic and ask if they will accept the insurer’s estimate. If they will, then everything is all set. If your preferred mechanic thinks the estimate is too low, they will often agree to call the insurance adjuster and discuss things directly.
If your car accident left you with vehicle damage, but no injuries, it probably makes sense to get the insurance claim process started on your own, without a lawyer's help. That's especially if you're proceeding through your own insurance company. For more tips on getting your vehicle repaired the right way after a car accident, get How to Win Your Personal Injury Claim by Joseph L. Matthews (Nolo).
If your car accident also resulted in injuries, or if you and the insurance company are miles apart when it comes to what it's going to cost (or who's going to pay) to get your car fixed, it might make sense to discuss your situation with an experienced legal professional. Learn more about how a car accident attorney can help.
]]>A demand letter is a convincing written claim for a specific amount of compensation. An effective demand letter is the centerpiece of a car accident settlement. Your letter should explain:
When you write your demand letter, keep your goals in mind. The best demand letters stick to the facts and include supporting documentation. Here are a few tips on how to write a professional demand letter that your opponent will take seriously:
Type your letter. If you don’t have a computer, ask if you can use a friend’s or use one of the computers at your local public library.
Be polite. Don’t personally attack the other side or use overly emotional language in your demand letter. Your goal is to reach an agreement, not to provoke an angry or dismissive response.
Keep it short, but not too short. Your letter needs to include all of the important facts, but unnecessary details and dramatic elaborations will only distract from your position. Your letter should include a concise factual summary of the accident, an overview of your damages, your settlement demand, and not much more.
Review the facts. Tell your side of the story with documents like police reports, witness statements, photographs, repair estimates, appraisals, and state laws (like the Vehicle Code) to support your position. Organize your store in chronological order with specific dates.
Ask for what you want, but be reasonable. Don’t expect the other side to read your mind. Demand a specific amount. You might want to ask for a little more than what you want so that you have room to negotiate, but don’t be unreasonable. Your settlement demand figure has to be connected to your actual losses.
Set a deadline. If you want to motivate a timely response, include a deadline in your letter. For example, you might end your letter with something like, “I look forward to receiving your reply no later than 10 days from the date of this letter. If I don’t hear back from you by then, I’ll pursue legal remedies.”
Keep copies. Make a copy of your demand and all documents you receive in response. If you are corresponding by email, make a folder to keep all emails and replies.
Use certified mail. Send your demand letter by certified mail with a return receipt requested. You can try email first, but if you don’t get a response, send the letter by certified mail.
Here is an example of what a winning demand letter might look like in a vehicle damage claim after a car accident.
August 21, 20xx
Dear Mr. Kenny:
As I informed you by email on July 16, 20xx, my car was damaged in an accident with your insured, William Jenkins. I was stopped at a stop sign on July 12, 20xx in Waukesha, WI when Mr. Jenkins slammed into the back of my car with his van. (The words “slammed into” are more dramatic than hit and set the stage for significant property damage.)
Mr. Jenkins was obviously negligent. He rear-ended me while I was waiting at a stop sign. He wasn’t paying attention and he was likely speeding when he forcefully hit me. It is an open-and-shut case. (You want to explain how the insured was at fault for the accident and conclude that the insured was negligent. Support your position with facts from sources like police reports, witness statements, and applicable traffic laws in your state. If the insured admitted liability or apologized for causing the accident, you definitely want to mention that in your demand letter. Learn more about driver negligence and car accident claims and rear-end accidents.)
When Mr. Jenkins slammed into my car, my trunk caved in. I have a small Honda, and small cars don’t tend to fare very well when they are hit by vans. My regular mechanic recommended that I take my car to Waukesha Body Shop. The mechanics at Waukesha gave me an estimate of $4,600 for a full repair. I have attached a copy of the estimate to this letter, along with photographs of the damage. (In a vehicle damage claim after a car accident, you want to make sure that the insurer has a copy of all documentation supporting the things you describe in your letter, including your mechanic’s estimate and photographs of the damage to your car.)
My car is only two years old, and is worth far more than $4,600. I understand that your appraiser estimates that repairs will cost $4,000. Our estimates are not that far apart. The Waukesha Body Shop is an independent, Honda-authorized repair shop. My understanding is that your appraiser’s estimate is from a repair shop that regularly works with Northern Insurance and your estimate doesn’t itemize each part and labor cost.
Based on Mr. Jenkins’ clear liability for the accident and my damages, I demand $4,600.00 to settle this case. This is not a complex claim. If I do not hear from you in two weeks, I’ll have no choice but to contact your supervisor and consider filing a complaint with the Wisconsin Department of Insurance. (If you can’t get a response from the adjuster, you might need to go over the adjuster’s head and speak to a supervisor or claims manager. If you still can’t get a fair settlement offer, you can explore other options like filing a complaint with the state department of insurance or a lawsuit. Learn more about how to encourage a prompt response from an insurance company.)
Thank you.
Respectfully,
[signature]
Fred Smith
Waiting for an insurance company to respond to your demand letter is challenging. In most cases, you’ll get a response within a few weeks or months and you’ll negotiate a settlement from there. Insurance companies have a financial motive to settle cases as efficiently as possible.
If you don’t get a response to your demand letter, you have options. Make sure the insurance adjuster has the necessary documents to make a decision about your claim. Be persistent and talk to a lawyer if the insurance company refuses to make a fair settlement offer. Each state has a deadline for filing a lawsuit (called the “statute of limitations”) and you don’t want to miss your chance to get compensation for your losses in court.
Learn more about what to do when an insurance company isn’t responding to a demand letter.
For more examples of effective demand letters and advice on how to craft a demand letter specific to your accident, check out How to Win Your Personal Injury Claim, by Joseph L. Matthews (Nolo). You can also purchase Nolo’s demand letter template.
If your car accident claim involves injuries and medical treatment, check out Nolo’s sample demand letters and use them to draft your own letter to the at-fault driver's insurance company:
If you would like help writing a demand letter, talk to an attorney. An attorney can answer your questions and help you strategize a game plan for your car accident claim.
Most car accident attorneys work on a contingency fee, so you probably won’t have to pay your lawyer unless you win your case. Learn more about how an attorney can help with your car accident claim. You can also connect with a lawyer directly from this page for free.
]]>Collision coverage (also called "car damage coverage") allows you to make a claim with your own insurance company to pay for repairs to your vehicle, no matter who was at fault for the accident.
After a car accident, you can file a vehicle damage claim under your own collision coverage or file a third-party claim against the at-fault driver under their liability coverage (of they caused your crash), but you can't collect compensation from both sources for the same losses.
Once you settle a claim under your own collision coverage, you give up your right to collect that any compensation from the other driver’s insurance for the same property damage.
If you collect from your own insurance company, you may have to sign or initial a "Right of Subrogation" provision, which allows your insurer to seek reimbursement for anything it has paid out to you, from sources including the other driver, that driver's insurance company, or anyone else who assumes financially responsibility for the accident.
Let's say you're in a car accident with Joseph Blau, who's insured by the Incidental Insurance Company. You're injured in the accident, and your car sustains $10,000 worth of damage. You file a third-party claim against Incidental for injuries to you, and for damages to your car.
Incidental argues that the accident was at least half your fault, so it offers only $5,o00 for your car damage. You believe you can show that Joseph was completely at fault, but it'll take several weeks to get what you hope will be a helpful police report and a statement from a witness who will confirm what happened.
You have $20,000 worth of collision coverage with your own insurer, the New Age Insurance Company. If you don't want to wait to get paid by Incidental, or if you don't think you'll get the full $10,000 from Incidental, you can file a claim with New Age. Collision coverage pays regardless of fault, so New Age must pay you the full $10,000 minus any deductible.
If you collect from New Age, you give up your right to collect property damage from Incidental—except reimbursement for your deductible. After paying you, New Age will try to collect from Incidental, but its success or failure in doing so will not affect your right to keep the money you've collected from New Age.
Maybe. If you make a collision coverage claim with your own insurance company and it turns out the other driver was at fault for the accident, your own insurance company might:
They might also be able to recover any deductible you paid as part of the collision coverage claim process, but it's not a guarantee.
Nothing you do under your own collision coverage affects your right to pursue a personal injury claim against the other driver’s insurance company. You are free to go after the other driver’s insurance company for any injuries and lost income resulting from the crash.
There are two main advantages to using your own collision coverage rather than filing a third-party claim.
First, you'll probably get a check from your own insurance company more quickly. Collision coverage pays regardless of fault. With third-party claims, the insurance company will investigate the car accident to determine whether their own insured was to blame. Investigations take time. You may have to wait for a police accident report or for an insurance adjuster to contact a witness before you can show the other driver’s fault. Or the other insurance company may simply stall to see whether you'll give in on the question of fault.
If you also have a third-party personal injury claim, you may not want to talk to the other driver's car insurance company until you've fully investigated the matter. Until you're certain about the facts and your arguments, it's dangerous to discuss details of the accident with anyone on the "other side." The struggle over who was at fault doesn't come up under your own collision coverage, and so these delays in paying out don't happen as often. Your own insurance company must reimburse you immediately after you've followed its rules regarding inspection and estimates, and you've agreed on a repair option.
Now let's look at the potential downside to filing a claim under your own "collision" car insurance coverage after a car accident.
If you make a claim for vehicle damage under your own collision coverage, you're limited to the amount of coverage listed in the policy. If the collision coverage policy limit is less than the cost of repairing your vehicle, you'll have to come up with the difference out of your own pocket, unless you settle a claim against the other driver’s insurance.
You may also be limited in what you can collect for items that were inside your car—like clothing, luggage, or sound equipment that's not permanently installed—and temporary replacement property, such as a rental car if your car can no longer be driven. Get the basics on property damage claims.
The compensation you collect under your collision coverage will be reduced by your collision coverage deductible. If the deductible is large and you need the amount to pay for repairs, this can present an added problem in getting your car repaired. For example, most people carry a deductible amount of $500 to $2,000 on their collision coverage. If repairs to your car cost $5,000 and you have a $1,000 deductible, your insurance coverage will pay you $4,000, and you must come up with the other $1,000 out of your own pocket.
But, as we discussed above, there may be situations where your insurance company recovers your deductible for you, if the other driver ends up being at fault for the crash.
The rules set by your insurance policy for processing a claim under your collision coverage may be more restrictive than the process for a third-party claim.
For example, your collision coverage may require more bothersome inspections of the car and estimates of the work before you can get approval for repairs. By contrast, the other driver’s insurance company has no right to enforce any such specific rules during the course of your claim. That’s because your right to compensation from another driver’s insurance arises from the other driver’s fault, and not from a contract between you and the insurance company.
Most drivers are well aware of the often exorbitant cost of auto insurance. While insurance companies often do raise rates after an accident, these increases aren't generally based on the fact that you've filed a claim.
Insurance companies base rates on several factors, including location and type of car, and the age of the primary driver. But it's your driving record that's most likely to affect your rates. If you're involved in an injury accident, your company will look at your overall driving record—including all moving violations and accidents—to determine whether to raise your rates (or, if your record becomes bad enough, to cancel your insurance altogether). It's the fact that you've been involved in an accident, rather than the type of property damage claim you file, that may affect your rates.
If you came away from you car accident with only vehicle damage (no injuries), it probably make sense to handle your own insurance claim, especially if it's through your own collision coverage (so you'd be working with your own insurance company). For more information on insurance coverage after a car accident, and every tip you’ll need to navigate your car accident case, get How to Win Your Personal Injury Claim by Joseph L. Matthews (Nolo).
Of course, if your car accident also resulted in injuries, or if you're running into any kind of conflict with the insurance company, it might be a good idea to discuss your situation with a lawyer. Learn more about how a car accident attorney can help.
]]>When you total a financed car, here are a few things you need to know:
A “total loss” car is a car that an insurance company decides is not worth the cost to fix. Most states have formulas for determining when a car is totaled. State law might say, for example, that an insurer has to total a car when the cost to repair it is more than 80% of the car’s value.
So, let’s say you wreck your car. Your insurer decides your car’s actual cash value (fair market value) on the day of the accident was $10,000. Applying the “80% Rule,” the insurance adjuster will see if the cost to repair your car will be more or less than $8,000 (80% of $10,000).
If the repairs cost less than $8,000, the insurer will pay for your repairs. But if repairs cost more than $8,000, your car is a total loss and the insurer won’t pay to repair it. Instead, the insurer will essentially buy your totaled car from you. You will provide the insurer with the title of your car in exchange for your car's ACV ($10,000). If your car is financed, the insurance settlement check will go to your lender first to pay off the balance of your car loan and you will receive whatever money is left over, if any.
You might be able to keep your totaled car, but you’ll have to pay for it. Insurers typically auction off totaled cars to car dealers or scrappers for parts. So, if you decide to keep a totaled car, the insurer will deduct the salvage price from your insurance settlement. For example, if your car’s ACV is $5,000 and the insurer can get $500 from a salvage buyer for it, your insurance settlement will be $4,500 ($5,000 - $500).
Totaled cars can be expensive to repair. Most states require you to get a salvage title for a totaled car. Cars with salvage titles are hard to sell and insure. Think carefully about whether keeping a totaled car is worth the cost and potential headaches.
Once a car is totaled and you sign the title over to the insurance company, the car no longer belongs to you and you don’t have to pay to insure it. To legally drive a car that was totaled, you have to have the car inspected, get a “rebuilt” title, and purchase new insurance.
If you total a financed car, you are still on the hook for the balance of your loan. Gap insurance can help cover the difference between your car's ACV and what you owe on your loan.
Most people don’t have enough cash to buy a new or used car. Instead, they borrow money from a lender (usually a bank or credit union) to buy the car and then pay the lender back in monthly installments over several years. So, what happens when you still owe your lender money for a totaled car? The answer depends on many factors, including:
Your car’s actual cash value (ACV) is the value of your car on the day of the accident. Insurers typically look at the sale price of similar vehicles in your area to determine the ACV. Insurers might also use valuation tools like the Kelley Blue Book to figure out a car’s ACV.
Your car’s ACV isn’t directly connected to your car loan. Your car’s AVC might be more or less than your car loan at the time of your accident. If you owe more to your lender than your car’s ACV, your insurance settlement might be less than your loan balance.
Most lenders require you to get car insurance when you take out a car loan. But your car insurance coverage might not be enough to cover your entire loan when your car is a total loss. Remember: Your insurer will pay only for your car’s ACV, not the balance of your car loan.
If you total a car in an accident, you can typically make a collision coverage claim with your own insurance company, no matter who was at fault for the car accident. If your car is totaled by a falling tree branch, fire, or other non-collision accident, your comprehensive coverage will likely cover it.
But your insurer doesn’t care about the balance of your loan. Your total-loss insurance payout will be for your car’s ACV only. If you owe more money on your loan than your insurance settlement, you are still responsible for paying the difference. Most insurers offer “gap” coverage, which pays the difference between your car’s AVC and your loan balance.
Most states require drivers and car owners to have some form of liability insurance or proof of financial responsibility to driver or register a car. Liability coverage pays for other people’s injuries and property damage when you are legally responsible (liable) for an accident.
Collision coverage is optional coverage that pays for damage to your car—minus your deductible—no matter who is at fault for the accident. If you total your car in an accident that you caused without collision coverage, you have to pay out of pocket to replace your totaled car.
Even if you are not at fault for the accident, your compensation might be limited if you don't have insurance. Several states have “No Pay, No Play” laws. In these states, if you don't have car insurance at the time of an accident, your ability to recover damages is restricted or barred entirely.
Learn more about what happens when you’re in a car accident and uninsured.
If the other driver is at fault for the accident, that driver’s liability coverage should cover your car's ACV, which will pay off part or all of your car loan.
But what happens when you are in an accident with an uninsured driver? When your car is totaled by a person who doesn’t have car insurance, you’ll likely have to rely on your own insurance to cover your losses.
You can purchase underinsured or uninsured motorist coverage (UMI) to help pay off your loan and replace your totaled car when you're in an accident with an uninsured driver. Be sure that your UMI policy covers property damage—some policies only cover car accident injuries. You can also file a claim under your collision coverage.
You can also file a civil lawsuit against the at-fault driver, but it might not be worth the expense unless you know that driver has assets you can recover.
If you’re the at-fault driver in an accident and you don’t have insurance, you will be stuck with a car payment for your totaled car until the loan is paid off. You will be on the hook financially for any damage you cause and you might face penalties for driving without insurance, including fines and a driver’s license suspension.
Gap insurance (short for “Guaranteed Auto Protection”) covers the difference between your car’s ACV and the amount you owe on your car loan. You can typically purchase gap insurance through your lender or insurance company.
You typically only need gap coverage if you might find yourself upside down on your loan at some point. Factors that might turn you upside down on your car loan include:
Some cars depreciate (lose value) faster than others. Research your car’s depreciation using tools like Kelley Blue Book online. Compare your car’s ACV with your insurance coverage to figure out whether you need gap protection.
Before you buy gap protection, look at your existing car insurance policy to make sure you’re not already covered. Gap insurance is included in some standard insurance policies.
Learn more about whether you need gap insurance.
Gap insurance only kicks in when your car is totaled or stolen to cover the difference between your car’s ACV and the current outstanding balance on your loan.
Gap insurance doesn’t cover:
If you don't have gap insurance to cover the difference between your total loss settlement and your loan balance, you can try to negotiate with the insurance company.
An insurance company is required to pay fair market value for your car. If you don’t agree with the settlement offer from the adjuster, you can counter with your own research. You'll need the current sales price for cars in your area of a similar year, make, model, and trim package. You can use the Kelley Blue Book value or online listings for comparison. The more evidence you have of your car’s condition right before the accident, the more convincing your argument will be.
If negotiations aren’t going well, you should talk to an attorney. You might be able to file a “bad faith” claim against the insurance company handling your claim, ask for arbitration, or file a lawsuit.
Your ability to shop for a new car after a total loss often depends on your insurance settlement.
If you own your car free and clear you can use your entire settlement check to purchase a new car. If you total a financed car, and the car’s ACV is more than your loan balance, you can use your insurance settlement to pay off your loan and shop for a new car with whatever’s left. If you owe more than your car’s ACV, you can buy a new car with savings or your lender might be able to consolidate what you owe into a new car loan.
If you’ve totaled your car in an accident, you should talk to an experienced car accident lawyer. A lawyer can help you understand your car’s actual cash value (ACV) and negotiate for a fair settlement. Learn more about getting a lawyer's help after a car accident. You can also connect with a lawyer directly from this page for free.
]]>Here's what you need to know:
Insurers consider a vehicle a "total loss" when the cost to repair it is greater than its “actual cash value” (ACV).
A vehicle's ACV is its market value at the time of the accident—not what you paid for it. Many people are surprised at how much (and how quickly) a vehicle's ACV goes down (depreciates). A brand new car famously loses value the second a buyer drives it off the lot.
You can figure out your vehicle's actual cash value by looking at the going rate for similar cars (same model year, make, condition, options) in your area using tools like Kelley Blue Book.
Most states have a “total loss formula” (TLF) for when insurers must total a car. For example, state law might require an insurer to total a car when the cost to repair it is more than 75% of the car’s ACV. Other states might set the threshold lower or higher. States without a TLC typically weigh the cost to repair and salvage a car against the car’s ACV. An insurer might also total your car if it can’t be repaired safely.
For example, let’s say you live in a state where lawmakers set the total loss threshold at 60%. You crash your Honda Civic valued at $4,800. If your mechanic says repairs will cost $2,880 or more, the insurer will likely total your car. If your mechanic can fix it for less than that, the insurer will likely authorize repairs.
If the insurer declares your car a total loss, it will typically pay you (or your lender if you still owe money on the car) the fair market value (ACV) and take possession of the car.
A total loss insurance claim is typically more complicated than getting a car repaired. Knowing what to do and what your options are can help you speed up the insurance claim process and get the best outcome possible.
Most total loss accidents are pretty serious. The most important thing for you to do is to take care of your physical health and well-being after an accident. Once the shock of the accident has passed, you should:
You can usually keep your totaled car, but the insurance company will probably figure out the car's "salvage" or "junk" value—how much they might get from selling it for parts —and deduct that from your car’s ACV. So, your settlement check will be smaller, but you'll get to keep your car.
Think carefully about whether it makes financial sense to keep a totaled car. You’ll need to have it repaired, inspected, and reinsured to get the car back on the road.
Some people choose to donate their totaled cars to charitable organizations in exchange for a tax deduction. You can ask your favorite charity if they work with a car donation service or auction house. Some state recycling programs list organizations willing to accept unwanted cars as charitable donations.
You can ask the insurance company to total your car, but insurers ultimately decide whether to total a car based on the car’s market value and the extent of the damage.
You might have to pay your deductible for a totaled car. Your deductible is the amount you agree to pay out-of-pocket after a covered loss. Usually, a deductible is a set dollar amount. For example, if the ACV of your totaled car is $5,000 and you have a $1,000 deductible, your insurer will pay out $4,000 ($5,000 - $1,000 deductible).
You might not have to pay the deductible if you aren’t at fault for the accident that totaled your car. In most states, the at-fault driver’s liability insurance covers accident-related losses, including deductibles.
The process for getting compensation for a totaled car depends on who was at fault for the accident and whether you are filing a claim under your own car insurance policy or making a third-party claim.
Let's take a look at different kinds of insurance coverage that might apply in an accident involving a total loss car.
Almost all states require that every registered vehicle and licensed driver have some liability insurance. If you are at all legally responsible for a car accident (negligent), your liability coverage compensates other people for their injuries and damage to their property. (About a dozen no-fault car insurance states have a different system, but liability insurance typically covers property damage even in those states.)
If your car was totaled in an accident that wasn’t entirely your fault, you can file a third-party claim under liability coverage with the other driver’s or car owner’s insurance company.
Liability insurance doesn’t cover your car. If you're at fault for the accident, your own liability insurance won't help you fix or replace your car.
Collision coverage is supplemental insurance that covers accident-related damage to your car, regardless of fault. Even if you caused the accident that totaled your car, you may be able to collect payment from your car insurance company if you carry collision coverage. Once you settle a claim under your collision coverage, you give up the right to collect that amount from the other driver’s or car owner’s insurance company for the same property damage.
Comprehensive insurance covers damage that isn't caused by a collision with another car. For example, if your car is totaled by a fire, a fallen tree, or severe weather, your comprehensive insurance coverage will likely kick in. Comprehensive coverage also might cover damage caused by hitting an animal while driving depending on your policy.
Unfortunately, even though states require car owners and drivers to have insurance, some people still drive without it or with inadequate coverage. If you have an accident with an underinsured or uninsured driver, you might be able to get compensation for your totaled car from your uninsured motorist coverage (UIM), if you have it.
The bottom line is that the other driver’s or car owner’s insurer will pay for your totaled car if the other driver was at fault for the accident (negligent). But your compensation might be limited if you don’t have valid insurance in place at the time of the accident, even if you aren’t at fault for the accident.
If the at-fault driver is underinsured or uninsured, you’ll have to turn to your collision or UIM coverage.
If you caused the accident, your liability coverage will pay other people for their injuries and damage to their property, but you’ll have to rely on your collision coverage to pay for your totaled car.
If you total a car without collision insurance, then your insurer will not reimburse you for the ACV of your car. Learn more about what happens when you’re in a car accident and uninsured.
Each type of insurance coverage—liability, collision, comprehensive, UIM—has its own policy limits. The policy limit is the total amount the insurance company will pay for a single accident or claim.
For example, say a driver rear-ends you and totals your car. Your car’s AVC is $25,000, but the at-fault driver has only $10,000 of property liability coverage. That driver’s insurer will pay only $10,000 toward your total loss settlement. The only way for you to get the remaining $15,000 of your car’s ACV would be from your own collision coverage or underinsured motorist coverage.
You can also sue the at-fault driver, but it might not be worth the effort and expense unless you’re fairly sure that driver has assets that you can collect if you win in court.
If you own the car, the insurance company will pay you directly. If your car is financed, the insurance company will pay your lender first. If the settlement amount is more than what you owe your lender, you’ll receive the rest. If the settlement amount is less than what you owe, you’ll be responsible for paying the rest of your loan.
Learn more about final settlement of vehicle damage claims.
The amount of time it takes to settle a total loss car accident case varies from a few weeks to many months. The timing depends on how quickly you file your claim, how easy it is to figure out who was at fault for the accident, state laws, and whether lawyers are involved in the negotiations.
Most states require insurance claims to be processed without unnecessary delays, but investigations and negotiations can take a while. Insurance companies investigate who’s responsible for the accident and whether there’s coverage for property damage, injuries, and other losses. You won’t receive settlement until the insurer sorts out both liability and coverage. Stay in touch with your adjuster and ask for regular updates on the status of your claim.
If the insurer says that your car is a total loss, it will only pay you the fair market value of your car at the time of your accident, no matter how much money you owe on your car loan.
For example, let’s say that on the day you total your financed car, you still owe $14,500 on your loan. But the actual cash value of your car is only $12,000. The insurer is only going to pay you $12,000, leaving you with a balance of $2,500 to pay on your loan for a car you can no longer drive.
Learn more about what happens when you still owe money on a totaled car.
Gap car insurance can help cover the difference between your totaled car’s ACV and what you owe on your loan.
When you're financing a vehicle, you don't own it, the bank does. As you pay off your car loan, you will often owe more than your car is currently worth because of car loan interest rates and depreciation. Gap insurance covers the difference ("gap") between what you still owe on your financed car and the car’s ACV.
Gap coverage may be required by the lender who is financing your car purchase, and it's usually available from lenders and most car insurance companies.
If you disagree with the insurer’s valuation of your car or repair estimate, you can:
If you want to dispute the insurer’s valuation of your car or estimate for repairs, you need to have evidence that your car is worth more than what the insurer says it's worth or that you can fix it for less than the insurer’s estimate.
You can dispute the insurer’s valuation of your car with documentation of upgrades and maintenance records and current photographs proving that the car is in pristine condition. If necessary, you can hire your own qualified appraiser who can inspect your car and prepare a report.
Insurance companies don’t replace totaled cars with new cars and they don’t pay off car loans. So your ability to get a new car after your car is totaled depends on how much your car is worth, how much you still owe on it, and insurance coverage.
Once you’ve figured out your loan payoff amount and the amount the insurance company intends to pay for the loss, you can calculate how much money you will have to put down on your next car.
If you are stuck owing money for a totaled car, your lender might be able to consolidate what you owe into a new car loan.
You might be able to handle your own insurance claim. But if you have questions about your rights and options, talk to a car accident lawyer. A lawyer can answer your questions, negotiate with insurers, and represent you in court if necessary. It’s worth the expense of hiring a lawyer when you don’t feel the insurer is offering a fair settlement for your totaled car.
Learn more about how an attorney can help with your car accident claim. You can also connect with a lawyer directly from this page for free.
]]>In the United States, one in five miles of highways and major roads, and 45,000 bridges, are in poor condition, according to a White House fact sheet about the $1.2 trillion bipartisan infrastructure bill passed in November 2021.
The poor road conditions most likely to cause damage to your vehicle include:
Even the most cautious drivers can get into an accident when faced with poor road conditions. This article focuses on who is responsible for vehicle damage caused by poor road conditions. For a related discussion, learn what to do if a poor road condition causes a car accident.
Roads are typically maintained by cities, counties, and states. If your car is damaged because a road or highway is in bad shape, you can probably file a claim against the government asking for compensation.
In order to win your claim, you’ll need to show that the government failed to safely and reasonably maintain the road. Governments generally discover dangerous road conditions in one of two ways:
Sometimes it's the government’s attempt to fix a road—road construction—that leads to accidents and vehicle damage. If your car is damaged in an unsafe construction zone, you might have a claim against the construction company responsible for the work.
If you are going to make a successful claim against the government for damage to your vehicle caused by poor road conditions, you will have to prove that the government was negligent. In other words, you’ll have to prove:
For example, let’s say a giant pothole develops on a downtown street in your city. The local newspaper is full of letters to the editor complaining about it and people have expressed concern about the pothole at city council meetings. But the pothole remains, untouched, for six months. If your vehicle is damaged by the pothole, you’ll have a strong claim against the city because city officials knew about the pothole and had a reasonable amount of time to fix it.
On the other hand, if a well-maintained tree falls unexpectedly and hits your car, the government (city or county depending on where you were parked) probably won’t be on the hook for damages. The tree was well-maintained and the government had no reasonable reason to remove it before it fell—the damage was caused by an accident, not negligence.
The first thing you'll want to do is gather information to get your claim started. You’ll need:
Next, you’ll need to figure out which government agency is responsible for maintaining the road in question. Local roads are usually maintained by a city or county. State governments (often with federal and local government assistance) maintain highways. The federal government is responsible for the federal highway system and interstates.
If you're not sure whether it's the city, county, state, or federal government that is legally responsible for maintaining the road where your vehicle was damaged, you can't go wrong with sending a claim to as many governmental entities as possible.
Every state has special rules for claims and lawsuits against the government. You can’t sue the government at all over some actions (or inactions). But you typically can sue the government for failing to maintain roads. First, you have to file a special claim (sometimes called an “administrative claim”) with the agency before you can file a civil lawsuit in court.
The claim-filing process varies from agency to agency, but you often have a short window to notify the government in writing of what happened and how much compensation you want. For example, in California, you have six months to file a special claim for property damage or personal injury in most cases. If you miss the window, you lose your right to make a claim or file a lawsuit.
The city, county, or state government might have its own claim form for you to complete, or they might just maintain a list of the required information. Start by doing an online search for “claim against [city/county/state] government.”
Once you submit your claim, the government has a certain amount of time to respond (for example, 45 days for most claims in California). The government might agree to pay you some or all of the money damages you demanded, and you might not need to go to court. If the government rejects your claim or offers less money than you demanded, you have a limited amount of time to file a lawsuit in court.
Chances are, the government isn’t going to send you a check for your vehicle damage just because you make a claim. You will have to prove the government knew about the road’s poor condition and didn’t repair it within a reasonable amount of time. The government might admit it had knowledge of the road’s poor condition. If not, you have a couple of options:
Request Survey Records. Government agencies conduct regular surveys to check for poor road conditions. You can request these records. Examine them and determine whether someone previously located the poor road condition that caused your vehicle damage.
Investigate. If you can’t prove the government knew about the road condition, you’ll have to prove that the government should have known about it, which will take some leg work. You will have to investigate the area. Try to interview people who live nearby and request police reports documenting all accidents in the area.
Whether or not you decide to make a claim, you should report the poor road condition. There is a good chance you will help prevent the poor condition from causing damage to someone else's vehicle. You may even help prevent someone from being seriously injured.
If your car was damaged because of poor road conditions, you might want to talk to a lawyer. A lawyer can help you decide if you have a claim against the government. Learn more about how to file claims against the government in your state and what kind of lawyer you need to sue a city.
]]>In this article, we'll outline the kinds of information you'll want to cover in your demand letter, and the documentation you might wish to include to help strengthen your claim.
The demand letter represents the first step in the vehicle damage settlement negotiation process. In the letter, you will spell out your vehicle damage claim, including the details of the underlying accident, how you dealt with the damage to your vehicle, and the costs you faced as a result of the accident.
With that in mind, your demand letter should include:
What is “actual cash value” in a car accident claim for vehicle damage?
If you’re making a vehicle damage claim after a car accident, you might hear the insurance adjuster toss around the phrase “actual cash value” if your car is approaching the “total loss” designation.
When the cost of fixing your car exceeds the vehicle’s “actual cash value,” the insurer will deem it a “total loss,” and instead of paying for repairs, they'll pay to replace the car. This can occur if:
Learn more about what it means when the insurance company says your vehicle is a "total loss."
Different people can have different ideas of what the replacement value—the “actual cash value”—of your car—actually is.
A vehicle’s actual cash value is usually set based on an examination of the sale price of the same or similar vehicle—model year, make, condition, options—in the same geographic area. One valuation resource that's usually used is Kelley Blue Book.
If you disagree with the insurance company’s valuation of your vehicle, it usually means that:
It probably makes sense to handle a vehicle damage claim on your own after a car accident, even if you disagree with the insurer's calculation of the "actual cash value" of your car. That's especially true if you're dealing with your own insurance company.
One thing you can do is ask the adjuster how they arrived at the “actual cash value” figure. Make sure they considered any customization, extra features or equipment you added to the vehicle. And do your own research. Look up online ads, and if they show asking prices that are consistently higher than the adjuster's valuation of your vehicle, bring the ads to the adjuster’s attention as a basis for boosting the number.
But if your car accident also resulted in injuries, or if you and the insurance company disagree on bigger issues (like who's going to pay to get your car fixed), it might make sense to run your situation past a lawyer. Learn more about how a car accident attorney can help.
by: David Goguen, J.D.