Understanding The Property Damage Claim Process

EUGENE BRUNO & ASSOCIATES

The Property Damage Claim Process

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The Stages of a

PROPERTY DAMAGE CLAIM Your vehicle must be inspected, and an initial estimate prepared, before repairs are authorized. The initial estimate determines whether your vehicle will be repaired or deemed a Total Loss. If repairs are authorized, a supplemental inspection will be performed to look for hidden damage and you will receive a supplemental estimate. If your vehicle is a Total Loss, a Fair Market Value report will be generated and you will receive a Total Loss payout which you can use to purchase a replacement vehicle.

Repairable

Begin Repair Authorization Process

Mitigate Damages Take reasonable steps to mitigate (minimize) your damages. Avoid storage charges by removing your vehicle from the tow yard ASAP and protect your vehicle from additional damage (for example, cover a broken window to prevent rain damage to the interior).

How Bad is the Damage?

Start with an Estimate Your vehicle must be inspected, and an initial estimate prepared, before repairs are authorized. This inspection will be followed by a supplemental inspection after repairs begin. A supplemental inspection will find hidden damage that was not visible in the initial inspection.

You will receive a supplemental estimate with the total repair charges.

Not Repairable Begin Total Loss Process

EUGENE BRUNO & ASSOCIATES 888-BRUNO-88 *This ebook is provided as a resource for general information for the public. The information on these web pages is not intended to serve as legal advice or as a guarantee, warranty or prediction regarding the outcome of any particular legal matter. The information contained herein is for information purposes only and does not create an attorney-client relationship.

Get What You Paid For If your automobile insurance policy includes collision coverage, we advise using your collision coverage to handle repairs. There are good reasons why you should have your car repaired under your collision coverage. In most cases, your insurance company cannot increase your premiums or drop you just for using your collision coverage, and usually we can get your deductible waived or advanced by the other driver’s insurance company. Using your own collision coverage is faster and easier than going through the other driver’s insurance, and you will avoid problems like adverse liability decisions, limits issues, and other delays that can end up costing you time and money. Plus, your vehicle repairs typically will be guaranteed.

Your Choice of Repair Facility You may choose any repair facility.

However, using insurance company “preferred” repair facilities typically makes the repair process run more quickly and smoothly and guarantees the repairs.

Getting a Rental Vehicle

Inspect Repairs

Your rental vehicle must be a reasonable substitute (in other words, a similar vehicle).

You will not be reimbursed for additional drivers, additional insurance, prepaid gasoline, or similar charges. Do not exceed rental benefits limited (daily rental amount and total number of days). If you do not need a rental vehicle, you may be entitled to compensation for loss of use of your vehicle.

Be sure to check your repairs.

Take a test drive. Check wheel alignment and steering and make sure you don’t hear any new or strange noises.

Total Loss

What is FMV?

FMV Payout

Gap Insurance

If repairs cost more than the vehicle is worth, the vehicle is deemed a “Total Loss” and you will receive the “Fair Market Value” of your vehicle. A FMV payout should enable you to replace your vehicle with a comparable used vehicle. Is your FMV payout fair? Request the FMV report to see how it was calculated. Compare it against vehicles you find on Craigslist, Auto Trader, etc.

Fair Market Value (FMV) is the average value of similar vehicles in your local market. FMV is based on local market prices of comparable vehicles. If your vehicle was in better-thanaverage condition, the adjuster is required to consider that in arriving at a value.

Start shopping for a replacement vehicle as soon as your vehicle is deemed a Total Loss. Once your FMV payout is issued, rental reimbursement will end, so act promptly.

A “gap” is when FMV is less than what you owe on the vehicle. In that case, you will owe the difference. Gap insurance will cover the difference. If you don’t have gap insurance, continue to make your monthly payment to avoid collection activity and credit damage.