Car Accidents! Nowadays, it’s not a question of if, but when. With over six million cars on our roadways every day, there is no doubt car accidents happen almost every 20 minutes. Just turn on your radio or television during “rush” hour and there are always car accidents being reported – usually two or three at a time.
Car accident claims comprise the largest number of car insurance claims. Each time an accident is reported to your insurance company, the company has to ‘reserve’ a certain amount of money it thinks it will pay out to settle the car accident injury claim – regardless of fault. As the auto accident personal injury insurance claim continues to move forward, that ‘reserve’ amount may increase or decrease until the accident claim has been settled.
So, what happens behind the scenes of a car accident compensation claim? What is your car accident insurance claims adjuster actually doing to settle your claim? Here’s an inside look at the world of auto insurance claims adjusters.
After you have filed a claim for car accident, the adjuster immediately evaluates the car insurance claim. He or she reviews the property damage appraisal and determines how much it will cost to fix your car. If the cost to repair the damage exceeds the fair market value (FMV) of your car, they will most likely recommend totaling the car in lieu of repairing it.
This is usually bad news for you – particularly if you own the car free and clear because the FMV price will most likely not be substantial enough for you to replace the car of equal value. If you still owe on your car (like 99 percent of us), you may be in an “upside-down” situation, which means you owe more on the loan than the FMV. Thus, you would still be responsible for the difference of the FMV and the loan – in short, you would be paying on a car that you no longer have. However, there is protection that you can purchase – it’s called “gap” insurance – gap insurance will cover the difference (usually up to a certain amount) should you find yourself in this situation.
If the damage is within the repair guidelines, then your car should be repaired by an authorized body shop at no cost to you except for your deductible. If you have rental insurance, you should be provided a rental car up to the maximum limits. If the accident was not your fault, the at-fault driver’s insurance may provide a rental car to you at no expense.
The second part of your car accident claim is determining bodily injury, if any. If you were not injured in the accident, consider yourself extremely fortunate. If you were injured and you require medical treatment, physical therapy, etc., this could prolong your car accident compensation claim. Different types of insurance coverage will kick in to help cover your medical costs, time lost from work due to your injuries, prescriptions and even mileage to and from your medical appointments.
Your insurance benefits will cover these expenses until you have met one of the follow criteria:
- exhausted your benefits (reached the policy limits)
- your treating physician releases you
- the car accident injury claims adjuster determines you no longer require medical treatment
If your injuries were primarily soft-tissue (no fractures or bulging or compressed discs), you can expect to treat from three to six months. Your claims adjuster will periodically review your medical records to determine whether to continue or terminate benefits. Do not be surprised if the auto accident claims adjuster terminates your benefits before you think you’re ready to stop treating. If the adjuster does terminate your benefits, you have the right to appeal the decision.
Remember, the car accident compensation claims adjuster’s primary goal is to settle your claim for the least amount of money. Seek legal counsel for guidance and never sign a release until you do.