i. is your car a “total loss,” or is it worth repairing ...€¦ · i. is your car a “total...
TRANSCRIPT
I. Is Your Car a “Total Loss,” or is it worth repairing?In dealing with the insurance adjuster regarding damage to your car, it is
important to know certain terms used in the insurance industry. One such
term is a “total loss.” “Total loss” typically means that the damage to your
car is significant enough that to repair the car would require repair dollars
equal to or more than 70 – 75 % of the car’s value. This percentage varies
from company to company. In other words, it is “not worth it” to repair your
car. This situation usually arises either when the damage to the car is very
significant, the car is very old, or both. If a car worth $10,000 needs $8,000
in repairs, it will likely be a “total loss.”
II. Handling Your “Total Loss” ClaimIf your car is a “total loss”, the insurance company typically owes you the
fair market value of your car immediately prior to the collision. Put another
way, the insurance company owes you what your car was worth (not what
you paid for it). The insurance company may do a “market survey” to
determine this amount. This basically amounts to finding out what cars like
yours (same year, make, model, mileage, condition, and accessories) are
selling for in your area. One way for you to do your own “market survey” is
to check your local paper for similar cars for sale, and check car valuating
services like;
• Kelley’s Blue Book, or kbb.com • N.A.D.A., or nada.com • Craiglist.com • Autotrader.com • For a fee, you can also get an expert opinion.2
You can negotiate with the insurance company based on what your
“survey” revealed, if it is higher than their Insurance Company’s. Some
adjusters will be willing to pay you more for your car if you can provide
support for your valuation. Remember also to tell the insurance adjuster if
your car recently had new parts added or service performed. This may add
value to the car.
If the insurance adjuster has a lower evaluation, ask for his basis. If the
basis is a “CCC” report, ask for a copy. Examine it carefully to determine
whether the cars in that report are truly accurate reflections of the value of
your car. You can call the owners of the car in the CCC report to determine
flaws that create a lower value, and then tell the insurance adjuster about
those flaws and ask him to run another report.
_________________¹ Some people now carry “gap” insurance and are entitled to the outstanding amount on their auto loan if that amount is higher than the value of the car.² We recommend Jason Yurcic at 505-203-4553, or Sonny Chavez with Auto Appraisers at 994-1340.
The insurance adjuster will usually make two o�ers: (1) The entire value of
the car, where you will be expected to “sell” the damaged car to the
insurance company; and (2) The value of the car, minus the salvage value
where you wish to keep the damaged car
Most car owners value their vehicle more highly than your ordinary buyer in
the market. We all have the best knowledge of our car’s maintenance, and
even, at times, some degree of attachment to our cars. Unfortunately, the
jury instruction is clear – only “fair market value” can be awarded. In this
respect, you must try to demonstrate the most accurate and favorable value
of your car you possibly can, through the use of the websites mentioned
above.
At the end of the day, the insurance company may not be reasonable about
the value. It is di�cult to decide whether to file a lawsuit over a di�erence
of a few hundred dollars. Lawsuits take time, and money, to resolve,
and may or may not be worth filing only over the property damage.In the
meantime, of course you need a car. If the decision is di�cult, please give us a
call. We may be able to include a property claim in a lawsuit for personal injury
– but it will take months, if not years, to resolve.
III. Handling Your “Repairable Damage” ClaimMany of the same principles mentioned above are applicable here. You may
drive or tow your car to a body shop of your choice, for an independent
estimate of the repair cost. You may also allow the insurance adjuster to
inspect your car to perform his/her estimate. You may do both of the above.
Most shops will agree to repair your car for the amount of the insurance
adjuster’s estimate/check. If the shop finds further damage to your car than
originally estimated, the shop usually calls the insurance company for you and
tells them it will take more money to repair your car.
If the damage to be repaired is not significant, you may choose to simply live
with the damage to your car, and cash the insurance adjusters check for the
repair. (If the damage presents a safety issue, the insurance company may
require that you complete the repair.) The insurance company still owes you
for the amount it would take to repair the damage. If you do not agree with
the insurance company damage estimate, you are free to get your own
estimates and negotiate with the insurance company from there.
If you believe the repair was done improperly or inadequately, we
recommend you consult with another experienced and independent body
shop mechanic to evaluate the repair.
_________________³ Body shops that we believe have performed professional work in the past are: Don Chalmers at 890-2270; Mr. B’s (contact Scott Benavidez) at 255-7022; Mauer’s.⁴ See the shops recommended in the footnote above
Diminished Value. In many situations, the wreck to your car may result in
“Diminished Value” of your car. If you sell your car in the future, any potential
buyer will likely perceive that the value is lower because of the wreck.
This is particularly true when there has been substantial damage, such as frame damage,
which obliges you to disclose such damage to potential buyers. If you strongly feel there is
substantial damage that would result in diminished value, you have a few options:
1. Compare blue book value of your vehicle model (without damages), to Carmax’s
estimate of its value with the repaired damages:
a. Get the blue book value of your car through Kelley’s Blue Book, or kbb.com;
N.A.D.A., or nada.com; Craiglist.com; Autotrader.com; eBay.com.
b. Take your car to Carmax and ask them for a quote to buy your vehicle. Leave a
copy of your repair invoice on the seat. (Do not tell them specifically about the
repair or diminished value when you ask to have it valued. Leaving the invoice on
the seat will give them the information they would need.)
c. Subtract the Carmax value from blue book trade-in value (or divide the latter by the
former). The di�erence (or quotient), is one way of showing how much the value has
diminished.
2. Pay an expert to give an opinion of “Diminished Value” that can be demanded in an
insurance claim.5 (As with any expert’s opinion, be prepared for an opposing opinion
from the defendant’s adjuster or defense counsel.)
_________________⁵ We recommend Jason Yurcic at 505-203-4553, or Tom Lincoln at 235-8084.
3. Use an online service. It will be a bit less expensive, but will not carry quite the same
weight since there is no in-person examination of your vehicle. Four online services
are: ICAN2000.com/dvdirect;WreckCheck.org;CollisionClaims.com;CollisionConsulting.com.
V. Storage FeesIf your car is taken to a tow yard lot or other storage facility after the collision,
that facility will be charging storage fees usually by the day. This is something
the insurance company usually pays, however, remember IT IS YOUR
RESPONSIBILITY to get your car removed from the facility in a reasonable
time period. If you allow the car to be stored longer than that, the facility will
usually file a lien on the car to pay the storage fees, meaning they will sell
your car to pay its own fee. Conversely, if there is no insurance to pay, or the
insurance company initially denies responsibility, you should remove the
vehicle to be stored for free, or as little as possible, pending further argument
about their responsibility to repair or total the vehicle.
IV. Other Damages You May Be Entitled ToRental and/or Loss of Use. In most cases, the insurance company will first
investigate and determine whether its insured is responsible for the collision.
After determining its insured is responsible, the insurance company may
provide a rental car, if your car must be evaluated, and/or if it must be
repaired. The insurance company will estimate the damage to your car, and
should make you an o�er within thirty (30) days. You are entitled to a rental
car while your vehicle is in the process of being repaired (which sometimes
includes the period of time that the insurance adjuster is estimating the repair
cost). When you first speak with the adjuster, ask about a rental car if you
need one. Ask the adjuster if he/she has any rental car agencies that you
should use and how much the adjuster agrees to pay. The insurance
company owes you reasonable rental car expenses.
If you do not rent a car during the period of time the car is being repaired, the
insurance company still owes you for “loss of use.” “Loss of use” means the
reasonable value of a rental car (a model similar to your damaged car), even if
you do not rent a car, while your car is being repaired. Typically, this is similar
to rental car expenses, so anywhere from $20.00 to $50.00 per day or above.
Currently, under New Mexico law, loss of use damages are available for
repairable property but not for completely destroyed property. As unfair as it
may seem, if your vehicle is a “total loss,” you will likely not be able to recover
loss of use damages or a rental car. It will be up to the car owner to replace it,
or recover a check for its pre-wreck value, as soon as possible.
VI. ConclusionRemember when you are dealing with insurance adjusters to ask a lot of
questions, especially if you do not know what the terms mean. Ask the
insurance adjusters to pay for everything you feel you are entitled to including
a rental car or loss of use. Finally, use common sense in what costs you incur
after the collision so that those costs will be reasonable and more likely to be
reimbursed by the insurance company.
If you have di�culty in negotiating this part of the claim, please let us know.
While we do not usually take a fee in handling property damage, we
understand that in very troublesome situations, a letter from a lawyer may be
necessary. If necessary and pragmatic, we can also include the property
damage claim in your lawsuit for personal injuries.
Very truly yours,
Bert Parnall
Parnall Law Firm, LLC
HANDLING YOUR “PROPERTY DAMAGE”
CLAIM
HANDLING YOUR “PROPERTY DAMAGE”
CLAIM
( W I T H A N I N S U R A N C E C O M P A N Y )
HANDLING YOUR “PROPERTY DAMAGE”
CLAIM( W I T H A N I N S U R A N C E C O M PA N Y )
Parnall Law Firm, LLC
( W I T H A N I N S U R A N C E C O M P A N Y )
This handout, provided by the Parnall Law Firm, is
intended to provide you with information that you
may find helpful in maximizing the money you
receive for damages associated with your car
following an automobile accident. This primer is
not intended to provide legal advice about any
specific situation, since each case turns upon its
own particular facts.
PLEASE NOTE: WHEN YOU SPEAK TO THE ADJUST-
ER, SPEAK ONLY ABOUT PROPERTY DAMAGE –
NOT THE WRECK, INJURIES, OR TREATMENT.
2025 San Pedro Dr. NE
Albuquerque, NM, 87110
Phone: (505) 268-6500
Fax: (505) 268-8708
www.HurtCallBert.com
www.HurtCallBert.com