The information you need before talking to the
insurance adjustor about your property damage.
By Shelly M. Leeke, Attorney at Law
All rights reserved. No part of this report may be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or other-wise, without written permission from the author.
Printed in the United States of America.
INTRODUCTION
Hopefully you have ordered this guide because you are a planner, and you know that that the unexpected CAN hap-pen, so it is always best to be prepared.
If you have had the unfortunate experience of being involved in a car accident before, you know that settling your property damage claim can be a real hassle and you don’t want to take a chance on going through the experience empty handed ever again. Or perhaps you are finding yourself after the accident, calling attorneys to help you with the property damage and you consistently hear, sorry, but we don’t handle property damage claims.
If only your car has been injured and not your body, you may be swimming through the murky waters of the insurance company alone. That is why I have created this simple man-ual to assist you in settling your property damage claim. My name is Shelly Leeke, and I represent victims who have been injured in car accidents.
I receive many calls from innocent people such as yourself who need some advice on how to deal with the insurance company when you are not hurt, but you need your car re-paired or even replaced.
I hope this guide will assist you if the unexpected accident happens. I welcome your feedback. If you would like to con-tinue to receive my special reports and guides on accidents and injuries, please e-mail or call.
Now, let’s get started.
Shelly Leeke Law FirmNegligence
- the
failure to take the
sort of action a
rea-sonable person would
take under the same
circumstances.
Adjuster
-
some-one who investigates
insurance claims
and/or property
damage claims and
negotiates an
appro-priate settlement.
YOUR RIGHTS WHEN YOUR
VEHICLE IS DAMAGED
When your vehicle is damaged because of the negligence of another, you have certain rights according to South Carolina law and the rules and regulations of the South Carolina Department of Insur-ance. If you are our client, in almost all instances our office will be dealing with the other person's liability insurance company through their adjuster.
REMINDER:
Always limit your conversation with the adjustor to property damage issues only. If you suffered injuries in the accident, do not give statements to anyone about your injuries!CAN I DO IT MYSELF?
Because it is rarely cost effective for you to hire an attorney to pursue your property damage claim, this pamphlet has been prepared to as-sist you in negotiating your property damage claim with the adjuster. If you are a client of ours, we will help you handle your property damage claim as a courtesy. It is still always your duty to mitigate, or minimize your loss. For example, delaying settlement of the property damage can result in unnecessary storage fees, depreciating car val-ues, and increasing repair costs which may give the insurance com-pany an excuse not to pay for the entire vehicle damage claim.
WHERE DO WE START?
FR - 10
- the green
sheet provided to you
by the officer at the
scene of a collision.
It can be used to
ob-tain liability
insur-ance information
and order the full
accident report.
Fair Market
Value
- the value a
seller, not forced to
sell, and a buyer, not
forced to buy would
agree upon for a
specific item.
You can often help our office obtain the name of the liability insur-ance company from the FR-10 (green sheet) provided to you by the investigating officer at the scene of the collision. After we contact the liability carrier by telephone, we always follow up with a written no-tice of your claim.
Once insurance company has notice of the claim, the insurance com-pany starts its investigation. The adjuster assigned to your property damage claim will have to complete their investigation of your claim before they accept or deny the claim. Unfortunately, you will have limited control over the amount of time involved before the insur-ance company makes a liability decision. In our office, if a client’s claim is denied or it appears that the investigation phase is taking too long, we will often suggest that you handle the property damage por-tion of the claim through your insurance company if you carry colli-sion coverage. If the liability company later accepts liability, your in-surance company will seek reimbursement from the at fault company and they will return any deductible you paid out of pocket.
If the liability insurance company accepts liability and you do not agree with the settlement offered by the adjuster, you have the right to reject their offer, but this does not mean that you will necessarily be able to recover any more monies on your vehicle. You should al-ways request that the adjuster tell you the specific offer along with the precise policy provisions and factual documentation the adjuster is relying on in support of the offer.
PART ONE- TOTAL LOSS
WHEN IS A VEHICLE A TOTAL LOSS?
A motor vehicle is considered a total loss when the amount of the repairs (including supplemental claims such as projected rental dur-ing the period of repair) equals or exceeds the pre-accident cash value, which is sometimes referred to as the vehicle’s fair market value.
not forced to sell, and a buyer, not forced to buy, would agree upon for the vehicle immediately before the collision giving rise to the property damage claim.
Insurance adjusters generally have a book value they use to arrive at FMV. They may have some "wiggle" room based on the condition of the vehicle, but there is generally little room for negotiation. Book value is supposedly FMV, but there may be some room to negotiate based on the condition of the car, etc.
Many insurance companies use the National Automobile Dealers
Association (NADA) publication entitled "Official Used Car Guide,"
which is published monthly. Other insurance companies have their own methods to arrive at valuations. Some insurance companies con-sider their system superior to the NADA Book commonly used. Not-withstanding, no publication is completely accurate and they should and are indeed only "guides". As such there is usually some basis to negotiate in most cases.
Reminder:
You should always continue making car payments even if the car is totaled. You are generally contractually obligated to con-tinue making payments, notwithstanding the condition of your vehi-cle. If you are behind on your loan payments, this will only make the negotiation on your total loss much more difficult.WHAT HAPPENS IF WE CAN’T AGREE
ON A VALUE FOR THE VEHICLE?
NADA
—the
Na-tional Automobile
Dealers Association
publishes the
“Official Used Care
Guide” which
insur-ance companies and
many banks use to
determine the fair
market value of a
vehicle.
Total Loss
-
occurs when the fair
market value of the
vehicle is less than
the repair cost.
When your vehicle is a total loss, the adjuster will usually provide substantiation for the FMV of your vehicle, including estimates, evaluations and deductions used in calculating the payment, as well as stating the source of these values.
Your vehicle is not worth more because you recently bought new tires or replaced the engine. Usually these items are considered mainte-nance and they do not enhance the value.
applicable receipts.
If your vehicle was in better than average condition prior to the colli-sion the adjuster is required to give due consideration to this fact in arriving at a value, but if your vehicle was not in good condition this will actually lower the value of your vehicle.
WHAT IF I WANT TO KEEP MY VEHICLE?
Salvage Value
-
the value of your
ve-hicle’s parts, if sold,
after your vehicle is a
total loss. The
sal-vage value is usually
between 10% and
25% of the total
loss value.
If the vehicle is a total loss and the fair market value of the vehicle is agreed upon, then in exchange for a check, you must provide the li-ability insurance company with the title to the vehicle and possession of the vehicle. In other words, the insurance company is not going to pay you full FMV and let you keep the vehicle. This is because there is usually some residual or leftover value in a totally damaged vehicle. At the very least, the vehicle can be stripped and some of the parts sold.
The value of what is left of the "total loss" vehicle is referred to as the
"salvage value". When the adjuster pays the FMV then you must sign
over the Title to the vehicle. If you wish to keep the vehicle then the insurance company will pay you the FMV minus the “salvage value". Usually the "salvage value" is between 10%-25% of the Total Loss value. In other words, if you want to keep the vehicle you can, but they will offer less money to allow you to keep the salvage. We gener-ally will ask the adjuster to give us two offers, one if the insurance company takes the vehicle and one if the client keeps the vehicle. The liability insurance company usually will have a salvage dealer who will purchase the salvage for the amount claimed as salvage value by the adjuster (usually a few hundred dollars).
WHO GETS THE TOTAL LOSS CHECK?
If your vehicle is not financed, then the insurance company will write you a check for the FMV and send it directly to you. If you have cho-sen to keep the vehicle, the check will include the FMV minus the salvage value of the vehicle. You may then choose whether or not to have the vehicle repaired.
The liability insurance company must pay the finance company. They are required to do this by Law. If there is any money left after the pay -off, they will write you a check for the difference.
Sometimes the check from the insurance company may have your name and the name of the finance company on the check. Usually you will need to endorse the check and turn it over to the finance company. The finance company will pay-off the loan and refund the difference to you as your equity in the vehicle.
If the pay-off on the loan is greater than the check from the insur-ance company then the fininsur-ance company gets the entire check and you will still owe the finance company the difference, unless you had purchased "gap" insurance. (Gap insurance is insurance you pur-chase when you buy the vehicle. It is sometimes required for leased vehicles and may also be provided in financed purchases.)
If there is insufficient money to pay-off the loan and you do not have any supplemental gap insurance, you may be “upside down” on your loan (in other words, you owe more than the vehicle is worth). This means, you will be stuck paying for the vehicle that you no longer use. Notwithstanding, if this situation arises you can ask the dealer where you purchased your vehicle if they would be willing to do sub-stitution of collateral.
What happens in this situation is that the insurance company sends the check for the FMV to the finance company, which in turn sends the Title to the liability insurance company and transfers what you owe on your vehicle to a new loan on another vehicle selected by you and the dealer. This procedure allows you to settle the property dam-age claim as well as provide you with a replacement vehicle. More-over, you may not be required to make another down payment on the subsequent purchase.
You will usually be required to purchase the subsequent vehicle from the same dealer because they must agree to this procedure.
Reminder:
If you choose to go this route, you should definitely pur-chase gap insurance so you do not again find yourself upside down on a loan.“Gap”
Insurance
-
in-surance you may
purchase when you
buy a vehicle that
covers the remaining
amount of an auto
loan when a car is a
total loss.
WHO PAYS FOR TOWING AND STORAGE
“
“Mitigate Your
Damages”
- the
requirement that
someone injured by
another’s negligence
must take
reason-able steps to reduce
the damages, injury,
or costs incurred and
to prevent them from
getting worse.
The liability insurance company is responsible for all reasonable tow-ing and storage charges until you and the storage facility are notified that the insurance company will no longer reimburse the owner or storage facility for storage charges. Once you are notified of this situation you must take all reasonable steps to move the vehicle or you will be responsible for the charges.
AM I ENTITLED TO A RENTAL VEHICLE
WHEN MY VEHICLE IS A TOTAL LOSS?
If your vehicle is not drivable, you are entitled to a rental vehicle from the time of the collision until you receive an total loss offer from the insurance company. Once the offer is made (assuming the offer is reasonable), the insurance company is not technically respon-sible for a rental vehicle. Some insurance adjustors will allow you a few more days if you have had trouble buying a replacement vehicle or allow time for you to receive the check. However, they are not re-quired to provide you with a rental vehicle after this time. You are always required to "mitigate your damages".
Generally, you should be provided with a vehicle comparable to the vehicle that was damaged. Some insurance companies have arrange-ments with automobile rental companies whereby a call from the li-ability company to the rental company will produce a vehicle to you at a fairly modest cost which the liability insurance company will pay for.
Repairable
- a
motor vehicle is
repairable if the cost
of repairs is less
than the pre-accident
fair market value.
PART TWO– REPAIRS
WHAT IF MY VEHICLE CAN BE
A motor vehicle is repairable if the cost of repairs is less than the pre -accident cash value (FMV). Do not have your car fixed without first allowing the insurance company an opportunity to see the damage and authorize the repairs. It will usually take at least three days to sev-eral weeks before the car is appraised, depending on the insurance company, when the accident was reported, and if liability has been accepted.
MUST I USE THE REPAIR FACILITY THE
INSURANCE COMPANY RECOMMENDS?
No. You may use the repair shop of your choice. Often, adjusters will recommend that you use a particular repair shop. You are not obli-gated to use that repair shop and may use the repair shop of your choice.
While you may choose the repair shop, you usually will not be able to designate the parts that are used. Generally, you are entitled to a repaired vehicle that is in a condition as good as it was just before the accident. Keep in mind that unless your vehicle is brand new, it is made up of used parts. This may mean that “like, kind and qual-ity” parts may be used in the repair of your vehicle. The insurance company also will typically not pay to have your entire vehicle re-painted. If only a part of your vehicle was damaged, you are not owed an entire paint job. Most body shops can match the color of your ve-hicle accurately, even if the paint has faded.
HOW MANY ESTIMATES SHOULD I GET?
AM I ENTITLED TO A RENTAL VEHICLE
DURING REPAIRS?
If your vehicle is not drivable, you are entitled to a rental vehicle from the time of the collision, until the repairs are completed.
If your vehicle is drivable, you are entitled to a rental vehicle starting on the day that the body shop actually begins repairs. It is important to remember that the adjuster for the insurance company knows how many days it will take to repair the vehicle and will generally not al-low any additional days for the rental vehicle. If the body shop is slow in completing the repairs the insurance company will not pay for any more time for a rental vehicle than was reasonably necessary to repair your vehicle. It is always important to pick a reputable body shop that not only stands by its repairs, but also will be responsible for any delays.
Generally, you should be provided with a rental vehicle comparable to the vehicle which was damaged. Some insurance companies have arrangements with rental companies whereby a call from the liability company to the rental company will produce a vehicle to you at fairly modest costs which the liability insurance company will either pay for directly or reimburse you later.
SUPPOSE SOMETHING GOES WRONG
AFTER THE REPAIRS ARE MADE?
-
If you sign a release involving a repair to your vehicle, that release does not bar you from later asserting a claim for damage to the vehi-cle which was unknown to you or the adjuster at the time you signed the release. If the discovered damage was caused by the collision and the damage could not be determined or known until the repair or attempted repair of your vehicle, you have an allotted amount of time after the repair to assert the claim for additional damages.
WHAT IF I HAVE ADDITIONAL
QUESTIONS?
Shelly Leeke Law Firm North Area Office 103 Laurel Avenue Goose Creek, SC 29445 Downtown & Mt. Pleasant 222 W. Coleman Blvd. Mt. Pleasant, SC 29464 Phone: 843-277-6049 Fax: 843-297-8497 [email protected] LeekeLaw.com
S
H E L LYM . L
E E K EShelly Leeke Law Firm The attorney and staff at Shelly Leeke Law Firm, LLC are dedicated to protecting the rights of accident vic-tims. Our promise is to han-dle your case with personal attention, zealous advocacy, professionalism, and com-passion.
Shelly Leeke Law Firm un-derstands that accident can be traumatic, life changing, and emotionally devastating events. We understand that the selection of your per-sonal injury attorney is an important decision, which may have far reaching con-sequences.
We consistently provide up to date information for acci-dent victims. We believe that knowledge is power and offer free reports and information for South Caro-lina residents.
South Carolina attorney, Shelly M. Leeke, has been representing peo-ple injured in accidents for nearly a decade.
She is the founder of Shelly Leeke Law Firm, LLC. The firm focuses on personal injury law, including automobile accidents, work injuries, wrongful death, dog bite injuries, motorcycle accidents, pedestrian ac-cidents, bicycle acac-cidents, construction injuries, boating acac-cidents, slip and fall accidents, trip and fall accidents, and drunk driving victims. The firm handles accident cases throughout the state of South Caro-lina, particularly in the low country counties of the state. Shelly has represented clients throughout the state and nationwide.
If you, a family member or a friend has been injured by someone else’s negligence, contact Shelly Leeke today for a Free, no obligation case consultation at 843.277.6049.
New Book Helps South Carolina
Accident Victims
Goose Creek, SC- An attorney-author is giving voice to injured people in South Carolina who are in search of fair compensation from their insurance companies after an accident.
Personal Injury Attorney Shelly M. Leeke wrote "The South Caro-lina Accident Book: Avoid the Mistakes That Can Wreck Your Injury Case." The book was writ-ten for South Carolina residents, and is meant to be an informative, practical, and easy to read guide for accident victims and motor-ists.
In the book, Leeke addresses vari-ous aspects of the insurance claims and litigation processes that are common in personal in-jury cases, and is being offered free to residents of South Caro-lina.
The book covers important topics
such as, "What is a Personal In-jury or Accident Case?", "Should I talk to the insurance company about my case?", and "Do I really need an attorney?" The book also discusses in depth the steps to take after an accident, the critical mistakes that can destroy your injury case, medical treatment considerations, why you may not even need an attorney for your case, and the legal process in-volved in resolving a personal injury claim. The book includes fifteen chapters spanning some 75 pages.
"Most of my clients come to me after having been involved in dev-astating accident. I’ve seen many unfortunate situations where an injured accident victim was taken advantage of by the insurance company. Too often, the accident victim has made a serious mistake in their case before they seek the advice of an attorney. Accident victims have questions that need answers immediately. They need useful information available to them, before they hire an attorney or speak with an insurance adjus-tor." said Leeke.
Leeke says that she also wrote the book to provide accident victims with accurate information about insurance claims and the legal
process. For instance, the book addresses common myths asso-ciated with accident claims and it offers an inside look at tac-tics used by the insurance com-panies to devalue accident claims.
The book has been published by Word Association Press and is at Amazon.com. As a public service, and for a limited time only, residents in South Caro-lina will receive a free copy of the book.
The Book can be ordered for free at TheSouthCarolinaAc-cidentBook.com.
The South Carolina Accident Book: Avoid the Mistakes That Can Wreck Your Accident Case is intended to help accident victims who have been injured in South Carolina. The book addresses various aspects of the insurance claims and civil litigation processes that are common in personal injury cases. It cov-ers a wide array of accident claims topics such as, “What is a Pcov-ersonal Injury or Accident Case?”, “How Do You Determine the Value of a Personal Injury Case?”, and “Do you really need an attorney?” The book also details how to work with a claims adjustor, medical treatment considerations, and the
dif-Shelly Leeke Law Firm North Area Office 103 Laurel Avenue Goose Creek, SC 29445 Downtown & Mt. Pleasant 222 W. Coleman Blvd. Mt. Pleasant, SC 29464 Phone: 843-277-6049 Fax: 843-297-8497 [email protected]
LeekeLaw.com Shelly M. Leeke Author
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If You Or a Friend or Family Member Would Like to Receive a FREE Copy of This Book, Simply Complete This Form and Return it To Our Office By Fax to 843-277-6049 OR Scan and Email the Form to [email protected]. We will also add them to our news-letter mailing list as a complimentary gift.
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