Helping Your Client with Their Collision Claim

In my prior life working for the insurance industry (over 27 years ago), I took a deathbed statement from an insured after getting permission to meet with her in ICU. The first thing she asked me about was her car! (Fortunately she survived). One of the biggest causes of angst among people involved in auto accidents, despite their injuries, is the damage caused to their automobiles. Nothing will drive an aggrieved claimant to an attorney faster than getting irritated at the insurance company over their collision claim. This is truer today due to specialization. Adjusters dealing only with property damage claims are more interested in trying to save a few dollars than making the claimant happy often to the chagrin of the bodily injury adjuster.
Many plaintiff attorneys shy away from property damage issues when representing a client even when that is the very issue that drove them to seek out an attorney in the first place. It is simply good customer service to assist clients with their property damage claims (at no charge). Auto property damage claims are generally easy to resolve if you understand what to do and what the insurance carrier (either first party or third party) is responsible for paying. The best way to avoid problems on auto repairs is to make sure your client goes to a reputable body shop. Most major carriers (State Farm, Allstate, Nationwide, etc.) have what they term as “approved shops.” These shops generally guarantee their work and can usually be relied upon to do the work properly to the client’s satisfaction. Problems arise when the appraiser neglects, overlooks or misses damage caused by an accident and it is not discovered until weeks later and he/she doesn’t want to acknowledge the additional damage. Most of the time this can be resolved by filing a well placed Complaint with the Department of Insurance utilizing a Consumer Complaint Form (No. D14-612) and making sure that a copy of the form goes to the claim’s manager.

Most of the problems with property damage claims are going to arise in situations involving a total loss. A lot of times, your client will want the at fault company to pay for the damages so they can save their deductible. If the carrier for the adverse party “lowballs” the value of the vehicle and is being obstinate you may find that resubmitting the claim to the client’s insurance carrier, gets them a much better deal and a fair settlement. The carrier will then subrogate to get the deductible back or you can request it up front from the adverse carrier.

It is important to understand how to evaluate a total loss claim. Most carriers use a service known as “CCC,” a national company that specializes in evaluating total loss vehicles. They will do a search of the local market and come up with a figure that they claim reflects the market value based upon year, make, model, mileage and general pre-accident condition of the vehicle. It is important to secure a copy of this evaluation from the insurance carrier when assisting clients in settling a total loss claim. It is also important for you to do your own independent research in establishing the value of the vehicle. This can be very easily accomplished by giving your client a “homework assignment” when they first meet with you to check the local classified ads (and provide copies to you) for used vehicle similar to their own to determine what those vehicles are selling for. Good sources for this are the local “show and sell,” local newspapers and the internet. In addition, you can check the value of a vehicle on-line through the “NADA Guide” or the “Kelly Blue Book” databases. This documentation will give you the necessary ammunition needed to dispute the insurance company’s evaluation of the vehicle if they are not offering fair value. It is important when reviewing the insurance company’s “CCC” evaluation that you make certain that they are basing their evaluation on the correct type vehicle. Sometimes, they will evaluate a model that is different from the client’s vehicle and this will cause a significant disparity in value. This is a mistake that is easily correctable when pointed out to the insurance carrier. Also, do not overlook the fact that your client might have a vehicle that has low or high mileage. Low mileage will cause the value of the vehicle to go up whereas high mileage will cause the value of the vehicle to go down. Learn to review the mileage charts in the NADA and other guides telling you how much money to add or deduct to a vehicle’s value.

Do not to overlook immediately filing Complaints with the Department of Insurance either through a Consumer Complaint Form and/or under Florida Statute, 624.155 (especially if the first party carrier is acting in bad faith). In the majority of cases, insurance carriers will immediately move to correct problems reported to the Department of Insurance. Also keep in mind that in first party collision cases where the carrier is being unfair, the filing of a first party lawsuit may give rise to claims for attorney’s fees making it feasible to pursue.

An important source of additional revenue in auto collision claims against adverse carriers is the loss of use claim. Clients are entitled to loss of use whether they rent a vehicle or not. If they are not renting a vehicle, assert the loss of use claim for your client as you can generally pick up an additional $25.00 a day (give or take) for your client while the vehicle is out of service. In situations involving total losses, you can collect loss of use generally from the date of the accident up until the vehicle is declared a total loss and an offer made. Asserting the loss of use claim when your client has not rented a vehicle will produce several hundreds of dollars extra that your client can use and put into their pockets.

Assisting clients with their collision claims is not difficult or very time consuming if you take the time to learn how to deal with various situations. It instills confidence in your client that they have chosen the right lawfirm to represent them.

Articles