Auto Accident Blog

Getting a rental car when you are in a total loss can be very difficult. When you are in a car accident and you get in a wreck, that you caused, or you did not cause, actually it does not matter if you caused it or not, the is not fault dispute. You have a total loss, your car is worth less than the expense that it would be to fix it.

This definition is a little bid incorrect. A total loss happens when the value to fix your car reaches 70, 80 or 90% of the actual value of the car, this is a sliding scales. 70, 80 or 90% threshold must be reached before there is a total loss depending your state.

When you have a total loss. Now what, you need a rental car. I need some wheels to get to work. I have to take my kids to school or to soccer. I need a car. This is where I think insurance companies drop the ball. Big time. They advertise on TV commercials.

They act as if they are so wonderful, but when it comes to the claims then you only have a rental per the statue of your state. Every state differs here.

Most states will give you a rental for 3 days. Some states like Texas will give you 1 day for the rental car. But one day from when? From the day the insurance adjuster decides that your car is a total loss.

The next day your are out of a rental. It does not matter that you are out of coverage. Does not matter that you have full coverage with rental included. This is very frustrating for many people.

Even if you live in a state like Washington, which gives you 3 days. This is still really bad. How can you drop everything to go find a car that period of time that is comparable to what you had. Even if you do find something, you will be under so much pressure that you might end with a bad interest rate, or some kind of bad financing deal.

You have three days and this is from the day they determine this, not the day that you receive payment, or the day the mail the check or even before they determine value. One of the state’s that advocates for consumers is the state of Montana.

I think they have a good system over there. They give you three days for a rental (which is still bad) after the day you receive the payment. So you might have to wait three days to get paid and then three other days to get a new car. Here, you can squeeze three more days. Again this is assuming that you do have rental coverage. We have to be careful here.

We have a link here to review insurance companies and see which ones are doing this and which are not. The best carries link tells us who has done what and what consumers are saying. Who is treating me right? Not the 99% consumer satisfaction that they advertise.

This is the only way we can really change things. We can write to our state legislature to change this. This is my ramblings about this the rental car as it pertains to total loss.

I hope you are aware of this before you are in a car accident, because when you do, then you know that this type of claim will make you quickly. For now we can start writing to congress, we need five or ten days at least to be able to get a replacement car.

Visit Auto Insurance Claim Advice for more about car accidents

If you are dealing with an injury settlement, getting the injury demand letter right is crucial. Most attorneys are experts in writing this type of correspondence, and it is always wise to speak with one of them about having them represent you and write this letter on your behalf. However, if you would like to try to write your own injury demand letter, this post can help you.

The demand letter should always be computer typed (you already know this). However, having your demand letter hand written will only make you look unprofessional and your award will probably reflect that.

The injury demand letter should have a heading that says “letter of demand” or “demand for settlement.” You should not hide the fact that you are trying to settle. Come out and say so right at the top. Most attorneys write this bolded and underlined.

Your letter should be dated, and it is essential that you have the claim number, policy number, indentify you as the insured or the claimant, and the date of the loss or the accident. You should also have the person you are addressing the letter, usually the claim adjuster that has been dealing with you.

You should always send an injury demand letter certified return receipt. This will take away the argument that the insurance company did not receive the letter. Some companies will try to argue that they never got your letter.

The letter should address the facts of the accident briefly if they are not disputed. If the facts are indeed disputed, then you should explain why you believe you are not at fault or why you are owed for injury compensation and damages. Remember, an injury demand letter is that, injury claims you are making. The property damage usually gets settle before you get to this point.

There are several reasons why you should address the fault issue. If there is split liability, then you need to explain how this will affect your settlement. For example, if you are claiming that you are owed $10,000 but you were 20% at fault. In a pure comparative negligence state, you would be entitled to $8,000. You would have to show that you had $10,000 worth of injuries and pain and suffering; however, you would settle for $8,000 accounting for your 20% contributory fault.

You would also want to address the fault issue if the person that hit you was severely negligent. If the facts of the accident were so bad that the same facts would only help you in front of a jury, then you should bring this to the attention of the insurance company here. Usually the DUI’s and hit and runs situation are mentioned here.

The letter must also address your injury. Usually a brief recap of how you were injured and what kind of treatment you seek will help. You should also add how much your medical bills were (if that helps your case).

The next step in the injury demand letter should be your explanation of why you believe you are owed any damages. If you are asking for pain and suffering, then you need to explain what kind of pain you had and if you still having issues. This also applies to other type of damages and like loss of consortium, future medical bills, loss of earning capacity, etc.

Your letter clearly state how much you would be willing to settle for, and when you will be expecting a response. You should also ask for a response in writing.

For more information and examples of injury demand letters click here

Insurance companies follow a standard process when totaling a vehicle. Usually, once you file a claim, the insurance adjuster looks at your vehicle statistics. They will look at your car’s mileage, make, year, and model. From there, they will try to asses the damage from what you tell them. For example, if the vehicle cannot be driven, then the insurance company knows that the possibility that the insurance company will end up totaling a vehicle is high.

Also, if the roof is buckled, the engine has ceased, or the windshield is broken, then the insurance company knows that the possibility that the vehicle is a total loss is very high. At this point, the insurance adjuster has two options. They can either have you take the car to a body shop (if you can actually drive the car) or you can have it tow to the closest repair facility. Remember, your insurance policy most likely has a clause that requires you to tow the vehicle once and only to the closest repair facility.

In most vehicle accidents, your vehicle will already be at some kind of bodyshop or mechanical shop. If that is the case, the adjuster will request that the bodyshop write an estimate and see if they believe the insurance will be looking at totaling a vehicle right there and then. However, insurance companies look at repair estimates very carefully. The bodyshop has a vested interest in NOT totaling a vehicle. They have an interest in actually fixing the vehicle. If they don’t fix the car, then they make no money.

Because of this reason, the insurance company almost always sends out an insurance adjuster to personally inspect your car. At this point, the insurance company will no longer be looking for the basic information of your car. They will be looking at more subtle things, like the condition, scratches, and just about anything they can use to document what the vehicle of your car is.

The decision of declaring a total loss is made before the adjuster comes to see the car. By this time, the insurance adjuster has probably already requested a CCC evaluation. A CCC evaluation is a third party assessment of what your vehicle is worth (CCC is the name of the company). This pre evaluation period gives the adjuster an idea of the value of the car. Therefore, when the adjuster is inspecting the car, the decision of totaling your car is already made. The adjuster will not tell you at this point. They will look at the car first. Then, they will send this information again to CCC and have them give them a final assessment of the vehicle of the car.

It is here when the adjuster will tell you that they will be totaling a vehicle and that you will be out of a rental car in three days (some states like Texas, require you to be out of the rental the same day they tell you the car is a total loss!).

It is here when the negotiation begins. Learn more about what insurance companies do when totaling a vehicle.

When is the best time to start your bodily injury negotiation? Some people try to negotiate their pain and suffering, loss of consortium, and the like damages the day after the accident (some the same day). The insurance company likes this type of fellows. They know they can get a substantially discounted settlement within the first two days after the impact. The result is clear. Insurance adjusters are very aggressive about getting you to agree to a settlement.

They will call you, they will write to you, and they will be fairly nice. All of these is done to butter you up to settle as soon as you can. You should always wait to start your bodily injury negotiation until you know what your medical condition is. It is critical to evaluate all factors that will come into play. If you are going to need further medical treatment, you need to be able to account for it. The worst thing that can happen is that you settle your claim, and then you learn that you have to have surgery. The insurance company will most likely decline any further payment, even if you settle for $50.

Waiting to start your bodily injury negotiation is not only important to avoid the situation described above. It also allows you time to think and perhaps talk to an attorney. Most attorneys give you free advice the first consult and they can tell you whether your case is worth fighting for or not.

The next benefit is that the insurance adjuster will not suspect that you are out there to get money. You know, the “I was hit person that the next day asks for $10,000 for pain and suffering.” This usually raises the eye brow of the insurance company and can leave you with a very aggressive adjuster unwilling to help you resolve the matter outside the court room.

There is something that makes you look “guilty” if you run and get a lawyer. Retaining a lawyer is a good thing, but you also need to be careful when you do it. Unless you have a severe case or injury, you need to give the insurance company a chance to be fair. You simply do not want to appear as if you are money hungry, it will damage your reputation and make the bodily injury negotiation very hard.

Don’t take me wrong, you are not money hungry. You simply want to be compensated fairly for your damages. However, most insurance companies and their adjuster operate from the presumption that most people are out there to take advantage of the insurance company. This is not the case. In fact, most consumers just want to settle and move on. This is probably your case, but adjusters will treat you as if you are a person trying to pass a fast one on them.
Make sure you do not treat them as if you were looking for a big settlement but as if you were looking for what is owed to you.

I must admit, I though most insurance polices were similar. You know, if you carry liability coverage, you basically carry the same coverage that I do, except that you have different limits and/or deductibles.

I was wrong. I took several polices and compared the “same coverages”. I came to the conclusion that the coverages are simply not the same. Some polices will cover you if you a pedestrian and you get hit under the PIP coverage, some will not cover you unless you are “using your auto.”

Some policies under Collision will cover you if you get in an accident while driving a rental car. Some will not. Some others will cover you against a lawsuit if you were under the influence of alcohol, some will deny you that coverage.

My point? When comparing auto polices, there is more than just rates and limits. Cheaper polices tend to exclude important coverages. Ask your agent for specific details of what is and what is not covered. Then you can make a decision if you policy is a good deal or not.

For more information about auto coverages visit:

http://www.auto-insurance-claim-advice.com/insurance-coverages.html

Ok, let’s set the record straight. There is a right and a wrong way to file an insurance claim. What you say the day you file your claim can give the insurance company enough to decline your coverage. You must be aware of what you are doing before proceed forward.

Here is a short how to list:

1. Read your policy first if you can. Your claim can be excluded for simply things. If you know what those simple things are, you will understand why the insurance adjuster is asking you she is asking you.
2. Prepare for the call. Have all the information ready so you can give it to the adjuster. Having the police report of the crash information sheet with you can help you with streets, names, etc.
3. Give yourself time. Prepare 1 to 2 hours. This way you will not be press for time and you can take your time and explain exactly what happened. You only get one chance to explain your point of view. If you are unable to explain your position, then the insurance company could “fill in the gaps” and find you at fault.
4. When you are talking to an adjuster, it is ok to say “I do not know or I can’t remember!” They don’t like that, but if you feel the question if framing you or you just can’t explain something, you can say just say that you do not know. This lets the door open in case they want to blame something on you; you can argue that you remember better now!
5. Talk to the insurance company when you are calm and can explain everything. Some people like to call from the scene and that is sometimes the best thing to do. However, most of the time is better to take your time, rest, go over the facts and then give those to the insurance company.
6. Get concrete answer from the adjuster. When are you going to determine liability? When I am going to get a rental car. You said that I can only get a rental car if the other person says that they are at fault, is that correct? Try to put them in a position in which they give you assurances.
7. Be polite yet make your point. Adjusters like to quote the law on people. Don’t argue with them. Just ask them to please mail you a copy of the pertinent statute or the pertinent section of the policy.
8. Ask for a detail explanation of the process. How will they handle the claim? What time frames are they talking about? Do not hang up the phone until every thing is clear to you. The adjuster has a duty to explain everything so ask them patience.
9. Ask what is expected of you. If the adjuster needs help finding a name or the police report, see if you can speed the process by requesting that. If the adjuster tell you that everything is fine. Then request that they update you regarding the claim often.
10. Make sure you ask them when you will be contacted next. If they fail to contact you, give them a call and make sure you notify the adjuster’s supervisor.
11. Visit: http://www.auto-insurance-claim-advice.com to be update on insurance claims.

We get emails about his all the time. Here is our reply: depending of who is denying your claim, your rights can be protected. If you are making a claim against someone else insurance company, they can tell you that your claim is denied because they believe that your at fault. That is about all they have to disclose. They have not more duties to you.

If you are dealing with your own insurance company, then that is a different story. They must tell you in detail why was the claim denied. They must give you some kind of outline of the investigation done to come to such conclusion. A claim denial is a serious thing, some states have added up to triple damages for insurance companies that deny a legitimate claim. Insurance companies will try to not give you much information because they do not want you to document a bad faith lawsuit against them. Visit:http://www.auto-insurance-claim-advice.com/when-not-to-file-an-auto-insurance.html for more information on how to file and document a claim.

If you are in this situation, send the insurance company a letter. Once things are on writing and the record, they cannot get “lost” or destroyed. This will be the request where your are asking for an explanation of the denial. The insurance company will have to tell you exactly why! If they don’t. Call a lawyer, you might be entitle to triple damages if the insurance company cannot explain.

Adjusters tent to be pushy and cranky. They do have a big claim load and they have a lot of responsibilities in every single claim. However, that is not your fault. You pay premium for a good service and help you in a harsh time.

If the adjuster is pushy or out of line, then contact her supervisor. If that does not work, contact the supervisor’s manager. If that does not work, contact the department of insurance in your state. That makes them move and will take you with a lot more respect. For a link to your state department of insurance visit: http://www.auto-insurance-claim-advice.com/

Demand respect and you will get it. Put things on writing and send letters to the insurance company documenting their lack of customer care. This will be part of your claim and can help you later if they really tick you of.

Even if you think that you are not correct because you do not understand the policy. Remember, the insurance policy has a duty to you, an affirmative duty to explain your claim. They cannot just get you of the phone because they want you out.

Make them stick to their promises and do not let them bull you around. You do have rights!

How much is your pain worth? Can we argue that your headache is $5? or $10,000? In reality, your pain is not worth more than you are willing to settle for. However, to insurance companies, pain is only worth what a jury would be willing to pay (or less).

The adjuster objective is to determine the value of similar cases, in your jurisdiction and estimate how much is the top award you would get. If you are asking for more than that, then they will go to court. Make no mistake, their first offer is always lower (way lower) than their original assessment. They want to give themselves space to go up in a negotiation.

Similarly, you should always make and offer that is high. Then move down as they move up. You are trying to come within a range of negotiation. Remember there are other things that affect a settlement, like the severity of the injury, your medical treatment, and your medical reports. They are key pieces in evaluating pain.

For more information about bodily injury claims, visit:

Insurance adjuster makes settlements based on their investigation about the facts. In many cases, adjusters will assess liability against their own insured if they believe their insurance is at fault.

Seldom adjusters will determine that they should settle a claim for 100% liability so they do not trigger “other issues”. For example, paying someone 100% of the damages to their car (instead of 80%) will probably deter the claimant from making a bodily injury claim (and have to pay 80% of their medical bills plus their pain and suffering).

Adjusters however a pressed to do what is best for their client (they have a duty to their own client), even if the client does not agree to what constitutes “best”. Most insurance companies have the right to settle the claim as they see fit. However, they also have the affirmative duty to do what is best for their client. They would have to explain to you why and how they are not advocating for you. Do request everything in writing.

 Read more about the right of settlement clause

Yeah, insurance companies will try to fix your car with use parts. They will call it something different. They will probably call it OEM or After market Parts. They are technically not “used” parts; they are just not manufacture by the original maker of the car. Instead they are manufacture by other factories in other countries.

Courts have sited with insurance companies on this one. The theory is that if you are in a car accident, then the insurance company will have to put you back in the position you were before. Since your car is not new (assuming you did not drive out of the lot and got hit), then they only owe your to put the same parts that you had (used parts).

It is hard to go dig for those use parts in junk yards and the like business. However, insurance companies will buy new or re manufactured parts for your car. You can dispute this if your car would lose its value by making a diminished value claim.

Lear more about Diminished Value Claims here

What is a first party claim? It is simply a claim that you make against your own insurance company. You could make a claim against the person that hit you, that would be a third party claim.

Shortly after you are in a car accident and make a claim, you will see that these concepts will have a very significant impact in how the insurance companies treat you.

The rights under a first party claim are much higher and much bigger than most people realize. Duties under a contract are constructed by the courts as an implied duty of fair dealing and good right on BOTH parties. This means that your insurance company must be fair, answer to you, keep you inform about the investigation and the process, etc. If there is a violation of any of the implied covenants of the contract (good faith and fair dealing), you could sue the insurance company for bad faith. To determine what a violation is, refer to your state code and look under “insurance” or insurance regulation.

Under a third party claim, your rights are much more diminished. Third party bad faith lawsuits are not allowed in most states (Montana allows third party bad faith). Other than that, you do not have many rights:
They cannot lie to you or misrepresent the facts
They must tell you that the statute of limitation is (unless you have an attorney). That is about it.

This quest is often emailed to us. The question reveals the confusion of the public out there. If you try to read the insurance policy you are going to see that it is not very straight forward.

Collision will cover your car subject to a deductible (the portion you have to pay). So if the damages to your car are $5,000 and the deductible is $500, then the insurance company will pay $4,500.

Uninsured Property Damage (UMPD) works in a similar manner. The UMPD coverage will cover your damage mines a deductible. Most of the time the deductible amount of the UMPD is lower than the collision ($100 or $300). So in the same case scenario above, the insurance company will pay $4,900.

But the difference is not just a lower deductible. There are other advantages to have UMPD. UMPD makes you a third party on your own policy. You will be making a claim against your own insurance company as if you were hit by someone they insured. They would have to pay what you would be entitled to recover against that person. This means that you are not bound by any other terms on the policy aside for those forward in the UMPD section of the policy.

This has strong ramifications, because in many occasions you would be able to make diminished value claims against your own auto carrier. You would be entitled to receive a rental car (unless that specific section of the police UMPD would exclude loss of use, most polices do not) even if you do not carry that coverage in your policy.

This is perhaps the most common mistakes out there. You do want to lower your premiums, but you want to make sure you are getting something for what you actually paid. Person Injury protection (PIP)is usually quoted together with the liability coverage. Most states require liability coverage, so insurance companies package them together. Other states require the Personal Injury Protection (PIP), but most do not.

States like Washington require that you sign an actual waiver of the PIP before this coverage can be excluded in your policy.

Insurance agents want to sell you the policy and get a commission. The honest ones will not waive the PIP. The majority will exclude the PIP, tell you that you do not need it if you have health insurance, and reduce your monthly payment.

The reality of the situation is that if you are in a car accident, health insurance companies need first verification that you do no carry health coverage in your auto policy. This process can take more than 30 days. Also, your health insurance only covers you, while PIP coverage covers everyone in the vehicle.

The savings of waiving or declining the PIP coverages usually is very low. We are taking about saving five bucks per month. If you are in a car accident your expenses will be much more than what ever money you can save. Make sure you have PIP and Medical Payments Coverage.

If you do not carry rental coverage on your insurance policy, you can be up for surprises. Say someone hits you. You have done nothing wrong and in no way you can be found at fault. In fact, let’s say that your car was legally parked and unoccupied.

The careless driver just hits your car, breaking the head and turn lights. You are out of a car to legally be on the streets. What would you do now? You need to get to work. So you call this guys insurance company. The insurance company will tell you that they cannot provide a rental car until either a police report of their own client tells them what happened. In most parking lot accidents, the police never show up to the accident scene. So you are left to wait for the careless driver to call his own insurance company and admit he did what he did.

This process can take sometimes up to 30 days (the time allowed in most states for an insurance company to make a decision).