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 Key Consumer Issues - Auto Accidents & Insurance Dealing With An Auto Accident | Auto Claims: Frequently Asked Questions | Auto Insurance Basics Dealing With An Auto Accident
So You've been in a Car Accident. . . As you've probably figured out by now, dealing with a car accident can be incredibly stressful and overwhelming. From handling the immediate situation to worrying about long-term needs and consequences, it may be something you're dealing with for many months. At times, it may seem to turn your life upside down. You've been lucky in the past and never had to use your auto insurance. The truth is, you don't know a deductible from a policy limit, and you're not really sure what your policy covers or how to make a claim. How do you sort through all of this and get your life back on track? WHAT DO YOU NEED TO KNOW TO PROTECT YOURSELF? Immediately Following any Accident, here are the First Things you Should Do:
You've gotten through the initial crisis. You've called the insurance company(ies) to let them know about the accident. Before you get too far into the claims settlement process, you need to:
You are now prepared to begin to make your way through the claims process. If the accident wasn't your fault, you have what's known as a third party or liability claim - a claim you file with the insurance company of the at-fault driver. Whenever you file a claim, you need to be sure you know about any statutes of limitations that may apply. (A statute of limitations is the time limit you have for filing a lawsuit against another individual or the insurance company for wrongdoing. Statutes of limitations are different, depending on the type of claims that need to be made.)
These various claims are usually grouped in two categories:
1. Property damage-This includes damage to your vehicle and its contents (subject to limitations and exclusions outlined in your policy) and may include rental car reimbursement. 2. Bodily injury-This includes medical expenses, pain and suffering, and other losses resulting from injuries you suffered in the accident. Although, people think that determining liability is simple, it is not. A police report that says one driver was at fault is helpful. However, just because a police report shows a driver was cited, does not mean his insurance company will accept liability. Often, the charged driver will argue the police were incorrect. Or, an insurance company may argue their driver was only partially liable and that you were partially at fault too. These possibilities can make settling a liability claim difficult. Don't be surprised if a 3rd party insurer tells you that they have investigated the claim thoroughly and determined that their insured driver was not at fault. Because the insurance company has an obligation to protect its insured driver from liability, you are likely to have to jump through more hoops if you are trying to settle a 3rd party claim in which liability is disputed. If the other driver's insurer determines their driver was liable for your accident, they will then evaluate the extent of your losses. They will require you to provide evidence of any losses you are claiming. Just as they thoroughly investigated the issue of liability, they will extensively investigate all losses you claim, especially any pertaining to bodily injury. It is important to note that property damage and bodily injury claims are handled separately. Settling Your Property Damage Claim: 7 Things You MUST Do As your claim is being settled, always be sure to take the following steps and precautions: 1) Keep detailed logs of all of your attempts to contact involved parties (the insurance company, claims representative/adjuster, repair shop, etc.). 2) Keep things in writing as much as possible, especially contact with the insurance company agents and adjusters. Use faxes or email instead of the phone. Be sure to keep fax confirmations and copies of "sent" emails. If you mail anything, send it certified/return receipt requested so you can prove when the company received it. 3) Keep copies of all correspondence between you and the insurance company, agent, adjuster, repair shop, etc. 4) Keep detailed notes about any phone conversations you have with the repair shop, insurance adjuster, your agent, or anyone else involved in the settlement of your claim or the repair of your vehicle; these notes should include full names of anyone you speak to, dates of conversations (whether by phone or in person), and summaries of the conversations. 5) Keep copies of any receipts/bills related to the accident (medical care, rental car, towing, etc.). 6) Keep copies of any estimates done on your car. 7) Contact an attorney if the insurance company denies any liability. Settling Your Property Damage Claim: Here's How it Works When settling your property damage claim, the insurance company is required to "make you whole," which means putting you back in the position you were in before the accident or damage occurred. The company can do this by: 1) restoring your vehicle to its pre-accident condition and compensating you for any diminished value that occurred or 2) replacing your vehicle with one of "like kind and quality" (only if it's a 1st party claim) or 3) compensating you for what the vehicle was worth before the accident occurred. In a third party claim, the company must also compensate you for the loss of the use of your vehicle, which means they have to pay for a rental car while yours is being repaired. To make its decision about how to settle your claim, the company will send an adjuster or claims representative to evaluate how much your car was worth before the accident, how badly it was damaged, and how much it will cost to repair. The company will then decide whether to repair the car or to declare it a total loss. Be aware: In making this decision, the insurance company is making a financial decision for itself and will probably select the option that costs it the least. Insurers typically do not have your best interests in mind. They Say My Car Can Be Repaired. What do I Need to Know? If your car is going to be repaired, you will need to choose a shop to do the work. Usually the insurance company will give you a list of recommended repair shops. You should do some research on those shops to see what you can find out about the quality of their work. Check with the local Better Business Bureau to see if complaints have been filed against them. You might also want to ask people you know and trust for recommendations. You do not have to use a shop recommended by the insurance company, but, if the shop you choose is more expensive, you may have to pay the difference in cost. Still, it's not okay for the insurer to use this fact to pressure you into using a cheap repair shop with a bad reputation. If they want to recommend a shop, they need to recommend one that does good work at a fair price. Once your car has been repaired, even though it may look as good as new, it probably still won't be worth what it was before the accident. That's because, once a car has an accident history, it loses value. After the repairs on your car are complete, you should have a dealer or other appraiser evaluate how much less it's worth because of the accident. You can also get information about the loss in value at www.claimcoach.com. Then, make a diminished value claim so that you can be fully compensated for your loss. What if I Disagree with the Company's Decision About how to Settle my Property Damage Claim? If you disagree with the company's decision about whether to repair or total your car or about how much to pay for your totaled car, you can ask them to reconsider; however, you will need to provide documentation supporting your request. Such documentation will be most persuasive if it focuses on:
These types of documentation are usually obtained by hiring an independent appraiser or having your car evaluated by a dealer so that you can provide "expert" support for your position. It is also helpful to do your own thorough research on your car's pre-accident value, the extent of the damages due to the accident, the cost of repairing it, and any problems that have been documented in making similar repairs on other cars.
The Insurance Company and I Still Can't Come to an Agreement on my Property Damage Claim: What are my Rights? If the company is not offering you a fair settlement you can: 1) file suit against the other driver in a court of law or 2) file a claim with your own insurance company, depending on the types of coverage you have - If you do this, you will have to pay your deductible. Usually, your insurance company will seek reimbursement from the other driver or his insurer. This is called "subrogation." If subrogation is successful, you may be able to get your deductible back, but it may take time. It is also important to keep in mind that claims you file with your own insurance company may cause your premiums to increase or lead to non-renewal of your policy. 3) Contact an attorney. For a free consultation from a Barnes Law Group attorney, click here. In addition to the options above, you may be able to file a "bad faith" lawsuit against the insurance company. Remember: the insurance company must fully compensate you for your loss. In addition, in Georgia, the law (O.C.G.A. 33-4-6 and 33-4-7) requires insurers to: If the insurance company violates these requirements, it may be acting in "bad faith" and may be required to pay you:
What if I'm filing a Property Damage Claim with my own Insurer? A claim you file with your own insurer is known as a first party claim. You might file this type of claim if: 1) the accident was your fault and you carry collision coverage 2) the at-fault driver was uninsured or underinsured and you carry uninsured/underinsured motorist coverage (UIM) on your own policy 3) the at-fault driver's insurance company isn't settling your claim properly. Settling a first party property damage claim is similar to settling a third party claim except that, in a first party claim:
Settling Your Bodily Injury Claim: 13 Things You MUST Do: As your bodily injury claim is being settled, always take the following steps and precautions:
Settling Your Bodily Injury Claim: Here's How it Works Bodily injury claims are usually more difficult and take longer to resolve than property damage claims. When settling your bodily injury claim, the insurance company is obligated to "make you whole" by compensating you for all of your economic and non-economic losses which may include:
When you file a bodily injury claim, the insurance company will only pay for expenses it believes are reasonable and necessary and related to injuries from the accident. Typically, insurance companies thoroughly investigate these claims to make sure the injuries you're requesting coverage for were really caused by the accident and are not excessive, unreasonable, or pre-existing conditions. They may also check to see if you've made similar claims before. The company will require you to provide extensive evidence in support of your claim, including past and current medical records and receipts. They may require you to be evaluated by a medical doctor they choose. If you are claiming lost wages, the company will probably ask you to produce evidence from your employer of dates you missed work and may require documentation from your doctors showing that you could not work because of your injuries. If you claim you had to stop working because of your injuries, the insurance company will look at your past work history (even going back several years) to see if you really worked regularly and what your average earnings were. For other injury-related expenses, the insurer will demand receipts and proof that those expenses were reasonable and necessary. For all of the above reasons, bodily injury claims can be very difficult to resolve and very stressful. And, to make matters worse, insurance companies usually won't pay your claim until you have completed your medical treatment. Unfortunately, this may put you in a bind, making it difficult for you to get the medical care you need. Here are your options: 1) If you have med-pay coverage on your own auto insurance policy, you can file a med-pay claim with your own insurer, and your accident-related medical expenses (up to the med-pay limits) should be covered under it. Depending on the terms of your policy, however, you may have to pay a deductible before your med-pay coverage kicks in. 2) If you have health insurance, you can use that to cover your medical care. At the time of treatment, you will be responsible for any copays or deductibles required under your health insurance. You may or may not be able to recover these later as part of your claim settlement. 3) If you have an attorney, he/she may write a "letter of protection" for medical providers asking them to treat you and letting them know that if a settlement is reached in your case, they will be reimbursed to the extent possible. However, you are obligated to pay your medical expenses, even if your claim is unsuccessful. An additional complicating factor you should be aware of if you suffer injuries in an accident is that the medical provider or facility where you receive treatment may file a lien against any damages you recover in a lawsuit or settlement. What if the Company Won't Give Me a Fair Settlement for my Bodily Injury Claim? In a third party bodily injury claim, if the insurance company is not offering you a fair settlement, your only option may be to file suit against the other driver in a court of law. What if I'm filing a Bodily Injury Claim with my own Insurer? A claim you file with your own insurer is known as a first party claim. You might file a first party bodily injury claim if: 1) you carry med-pay coverage on your own policy and the accident was your fault or the at-fault driver's insurer isn't settling your claim to your satisfaction 2) the at-fault driver was uninsured or underinsured and you carry uninsured/underinsured motorist coverage (UM) on your own policy Settling a first party bodily injury claim is similar, in some ways, to settling a third party claim. However, in a first party claim: 1) Your insurer will usually pay for you medical expenses as you receive treatment, instead of waiting until your treatment is completed. 2) You will only be covered up to the limits of your policy coverage. If your injuries and related expenses exceed those limits, you may not be able to receive full compensation for your losses. 3) If you're filing under med-pay coverage, you may have to pay a deductible. Also, the type of expenses you can recover for will be limited by the terms of your policy. For example, your policy may state that med-pay coverage does not reimburse for lost wages. 4) Unlike 3rd party bodily injury claims, in first party claims, you can file a "bad faith" lawsuit against your insurance company if the company does not meet certain requirements in settling your claim. |
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