February 1, 2021 |
, The Barnes Firm
Insurance companies conduct evaluations through the National Automobile Association guidebook or Kelly’s Blue Book; however, the truth is that you may incur other costs associated with your accident that could very well be covered and that you could be compensated for.
The first thing that will happen is that you will be visited by our good friend the claims adjuster. If you are at fault your insurance company will send an adjuster. If the other party is at fault a representative from their company will evaluate the vehicle. One thing will not change, no matter what the adjuster believes you should get, only the amount that they must pay you according to the law is what you will receive as your payout. Insurance companies lose money every time that they provide compensation for an accident claim.
Actual Cash Value (ACV)
The ACV or the value of cash your car is worth according to your insurance company, including how much they will pay you should your car ever get stolen or wind up totaled as a result of an accident. Your ACV is the value that your vehicle had prior to the collision according to your vehicle’s insurance company, not including the deductible.
Your car will lose value after any accident regardless of how much damage there is or what is needed to be fixed. There are three ways that a car will lose value after an accident:
- Immediate: Your immediate value occurs the second you get into an accident, and before repairs are made. A value like this is very rare and doesn’t last long because your insurance company will certainly cover the cost of repairs after a wreck.
- Inherent: Inherent value comes into effect because it is the always the insurance company’s program to make sure that a professional is used to repair the vehicle.
- Repair-Related: Repair diminished value happens when your car’s repairs were not made the right way and were found to be faulty. A lot of times this happens when you chose to do your own repairs.
Things to Remember
While there is a lot that goes through your mind during and after an accident. As such, it is imperative that you understand what may happen throughout the entire process. Below are a couple of key points that most people to not think about, or know:
- Car insurance is meant to make you whole after an accident or if your car has been stolen.
- Market Value vs. cost of replacement can be very confusing, so study your automotive insurance policy closely so that you are aware of what costs will be covered.
- Immediately following an accident check yourself and your passengers for injuries, then try to get your car off the road if you are physically able to do so.
- If your automobile is stolen, there is a chance that whatever your insurance company offers, also called a payout, will not be enough to cover both the leftover balance from your vehicle loan plus a new car.
- The left-over amount is called a deficiency balance. If your unlucky enough to have a deficiency balance, then you must understand that the lender will expect to be paid for the remaining balance.
- If you do disagree with the payoff you are offered, there are many ways to contest it. Do not be afraid to speak up if you’re not satisfied with the payoff.
Knowledge is power and the more you know about your insurance policy, and your rights as an insured motorist, the less likely you are to find yourself in an even worse situation that you anticipated.
Call on The Barnes Firm for Guidance After Your Accident
The Barnes Firm’s expert personal injury attorneys are always prepared to help you after your accident. If you or a loved one has been injured in an accident, and needs a rental car, let the California law firm’s accident lawyers review your case and guide you through the complex details regarding your injuries, damages, insurance, and legal options to ensure you get the compensation you deserve.
Call (800) 800-0000 anytime for your FREE consultation.