None of us wants to think about being involved in an auto accident and being thrust into the uncomfortable and bewildering world of filing insurance claims and negotiating auto accident settlements. But as noted by Sal Caputo in his article, “Guide to Insurance”, published at Bankrate.com (Caputo, Sal. “Guide to Insurance.” Bankrate.com Sep. 2003: Web. 31 Dec 2009), with more than 220 million cars on American roads these days, it is an unfortunate fact that you may well be involved in a auto accident someday and face having to file an auto insurance claim. Consequently it makes good sense for everyone who owns and drives a car to educate themselves on the topics of auto insurance claims and auto accident settlements. Acquiring this knowledge in advance can make the situation less stressful and can increase chances of obtaining a fair settlement.
The Auto Accident Settlements Process
After an auto accident the first step is filing a claim. Damages may include property damages (vehicle damage), special damages (easily quantifiable losses such as medical expenses and loss of wages) and general damages (such as pain and suffering and future loss of earnings). Auto accident settlements represent the payment of auto accident insurance claims. A claim is filed with an auto insurer for the damages sustained as a result of the accident. Once a claim has been filed it is assigned to a claims adjuster employed by the insurer and a negotiation process ensues with the goal of reaching an agreement and settlement of the claim. Most insurers have attempted to simply the initial claims filing process and initial claims may be filed by telephone, on-line or in writing. Following the filing of a claim, the claimant will be contacted by the adjuster who will ask questions about how the accident occurred and what losses were sustained. The adjuster also evaluates the vehicle involved to estimate the amount of property damages. If personal injuries resulted and general and special damages are claimed, the adjuster will require documentation to support those types of claims.
Adjusters do utilize computer software programs and proprietary templates to evaluate claims for auto accident settlements but all claims are unique and no common formula exists to compute settlement offers. There are recognized rules of thumb, such as pain and suffering settlements are generally computed as three times the amount of medical expenses incurred, but this is a generalization and not a hard and fast rule. The computation of property damages is the most straight forward aspect of the settlement process. Vehicle damages are evaluated and computer software programs are used to estimate the cost of repairs. Claimant are then offered the computed amount or if it was determined that the cost of repairs exceeded the fair market value of the vehicle it may be deemed a “total loss” and the claimant offered an amount equal to fair market value (sometimes termed actual cash value) in compensation for the property damages. General and special damages are the components of an auto insurance claim that are most subject to a negotiated settlement.
As one might expect, as representatives of insurers, claims adjusters are motivated to offer auto accident settlements that are in their employer’s favor and are the least costly. Consequently, the first settlement offered by the adjuster will likely be low and not the optimum that might be obtained by the claimant. Adjusters are often given the authority by his or her supervisor to settle the claim with a dollar amount range and adjusters generally will start at the lower end of that authorized range. As an example, if an adjuster offers a settlement of $5,000 it is quite likely that he or she has been authorized to settle the claim within a range of $5,000 – $8,000, and room for negotiation by the claimant to secure a fairer settlement exists. Attempts to obtain a settlement above the end of the example range given ($8,000) would require submission of some compelling evidence not previously submitted to the adjuster to justify the amount claimed.
Obtaining Fair Auto accident settlements
There are a number of steps that a person may take to help them obtain fair and equitable auto insurance claim settlements. Obtain two or more independent vehicle damage repair estimates from repair shops. See a medical practitioner if you suffered personal injuries and get the extent of your injuries documented. Assemble and organize records like paycheck stubs, statements from employers concerning lost time at work and copies of any police accident reports to help substantiate claims for general and or special damages. Don’t be intimated by the adjuster. While you should maintain a courteous demeanor with the adjuster, don’t be afraid to press him or her to obtain a fair settlement that is representative of the true value of your claim.
Tags: accident insurance, auto accident settlements, auto insurance claim, auto insurance claims, auto insurer, claim damages, filing insurance
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