Working with insurance companies after an auto accident can be a complicated and frustrating process. When a car is badly damaged, many insurance adjustors will consider it a “total loss” and begin the settlement process. Often times, adjustors will try to settle on a replacement vehicle that the accident victim feels is an unfair substitute.
If you have been in an accident and are working with your insurance company, it is important to have proper knowledge of the situation to avoid an unfair settlement. The following tips could help ensure you receive a proper settlement:
1.) Insurance papers can be extremely technical and confusing. Before you sign any papers, make sure you fully understand what you’re agreeing to. Research any terminology or phrases you do not understand. Also, do not be afraid to contact your insurance company and ask any all questions you may have pertaining to the documents they wish for you to sign.
2.) If your car is no longer drivable after the accident, your insurance company must provide you with a rental car. The insurance company may try to put you in a smaller rental car in an attempt to save money. However, they are obligated to provide a rental that is the same size as the vehicle you were driving at the time of the accident. In addition, if you do not use a rental car for a period of time after the accident, you are entitled to monetary compensation from your insurance company, ranging from $20 to $25 dollars each day.
3.) Research the value of your car at the time of the accident using your local classifieds or websites such as autotrader.com. Insurance companies tend to value your car by finding similar vehicles as close to your home as possible. Many times, this results in an unfair offer. You are not required to accept the adjustor’s first settlement offer if you think it is less valuable than your previous vehicle. If this happens, simply counter-offer with copies of vehicles you have found in your own research.
4.) Do not keep the rental car longer than the insurance company permits. You will be held responsible for additional charges. Your insurance company will provide a rental vehicle from the date of the accident until they make a “reasonable offer” for your replacement car. Return the rental the moment the adjustor tells you, even if your settlement check has not arrived.
