The game goes like this:
1. Assuming there is liability and lets assume there is.
2. Appraiser is assigned to look at your car, now his or her goal is to get you to agree
and the shop to an agreed price to repair, this is done right away and at the shop or your
home. Some suggestions; always be there and make sure you know exactly what you are getting
appraised.
3. Also, keep in mind that you can have your car repaired where ever you want it repaired,
but the appraisers role is to get an agreed price where you want it repaired, not where he
wants it repaired. Now if you have a shop that will repair it for $3,500 and the adjuster
says no we can get it done for $2,750, what do you do.
Here is what you do, you tell the adjuster that you are not
in the business of repairing mass volumes of cars and cannot drive prices, therefore you
want him to pay your price, now he or she will say no, go to your own carrier, now is when
you pull out the unfair claims practices act and study it carefully. You also call the
claims manager and the insurance commissioner.
4. Lets assume the car should not be driven, you will need a rental car or you may have a
second car you can drive.
(a.) If you need a rental car, you get what you had, i.e., like
kind and quality if you had a Lincoln that is what you demand be rented for you, nothing
less, that is what you are entitled to. Also demand a direct bill to the adjuster, no
dollars out of your pocket
(b.) Some rental car companies will want to bill you directly for
the collision damage waiver, in most cases your own policy should suffice and you should
not pay those charges, if they will not, demand the carrier pay them for you, if they will
not, tell them, look before this accident I was just fine, but for your accident, I would
not have had to pay it. The adjuster will argue, well you did not have collision on your
car we hit, we owe you nothing more than you had. At this point ask for the claims
manager.
(c.) You have a car and do not need a rental, demand the cost of the rental
regardless, you are entitled to loss of use of your car. Bottom line the adjuster must pay
you for the loss of use of your car even if you do not rent one. They know this and if you
demand it you will get it, if they say no, call the claims manager and the insurance
commissioner.
5. Your car is a total loss, the game is get dollars to you quick to lower rental car
exposure.
Keep in mind your options and how the game works when the car is a total, i.e. costs more
to repair than the adjuster thinks it is worth. Now at some point if the salvage is high,
i.e., what a savage dealer will be for the damaged car for parts, for example the costs to
repair are more the an 50% of the value of the car, and good salvage the adjuster may just
total the car and cash you out.
You have two options, you can take the cash and give the adjuster the title; he gets the
salvage. You take the salvage and the adjuster gets a credit for the value of the salvage.
Now what if you disagree on the value of the car, most adjusters use (1) CCC and (2) ADP
(Auto Source) large computerized data bases that compute a value for your car. Always ask
the adjuster for a copy of the document so you can check the values out. Take this
document to your dealer and compare it to what the dealer wants. Clip advertisements from
the paper, keep in mind there is litigation out there that these data bases are not
accurate and in some cases they are really not, so be careful.
Get a copy of your states unfair practices claims act if you disagree with the value. In
most states they must find you a similar car if you cannot find one. You must not hesitate
to call the claims manager and demand a review of their offer and demand a direct response
and in writing from the claims manager. Also use the office of the state insurance
commissioner. Use your attorney.
They should provide a rental car up until the time they cash you out plus at least five
additional days to find a car, do not allow the adjuster to cut you off when they give you
the dollars, the trick is, we made an offer, that is the end of the rental, if that
occurs, call the claims manager and complain, call the insurance commissioner. Your
attorney should also be called or you should strongly consider retaining one. This tactic
is very often used, do not let them play it with you if you complain you will get your
rental car extension.
What do you do if you cannot budge the adjuster on value?
Ask for them to pay you the undisputed value of the PD claim now and leave the balance
open for later settlement, do not sign a PD release and leave open any claim of bad faith.
If this occurs you may wish to retain counsel before you do it.
6. Your car was not a total it was repaired but had damage in excess of $2,000. This
number may not be a magic number, but you should ask for "Diminished Value" in
the majority of states when a car is in an automobile accident the car is considered to
have less value after repairs than before repairs. Have your dealer write you a letter on
the diminished value and ask that it be paid in addition to your PD claim, that is over
and above costs of repair and rental. This area is something you may wish to ask counsel
about, it could be that your state does not allow this form of recovery, but most do and
you should ask for it, the adjuster will not volunteer it.
7. One other issue is new parts vs. after market parts, you do not have to accept after
market parts. Remind the adjuster of the recent State Farm verdict. Also most unfair
claims practices acts set forth a very strict procedure if they use the parts, also the
body shop will have the state guidelines at the shop to help you.
In balance also keep in mind the adjuster wants to close out PD reserves quickly.
Therefore you must know that in claims, "The squeaky wheel gets the
grease" If you do not like what is going on, complain and complain, and every
time you talk to the adjuster confirm that conversation in writing and keep a copy for
your file.
BACK TO MENU
CHAPTER 3
Mike Cerf
Expert Witness Insurance Claims
Sherwood, Oregon
503-925-1937
mcerf@teleport.com
Truth and Justice will prevail!
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