Everything You Need To Know About Your Property Damage Claim Following A Car Crash

If your vehicle has been damaged in a car crash, we understand your frustration. You were just going about a normal day when someone else’s negligence ruined your car. You may not be able to get to work or get your kids to school. You may need groceries or just want your car not to have its bumper falling off. Even though it’s not your fault, you are probably getting stonewalled by the insurance company because they are doing their “investigation” or “confirming coverage” or simply just dodging your calls.

We have handled thousands of car accident cases, and we hope this pamphlet helps give you a road map of what to expect if you have hired us or just to use to handle your property damage on your own after a car accident. A Harvey, LA car accident lawyer can help accident victims navigate the property damage claims process, communicate with insurance companies, and protect their rights while pursuing compensation for vehicle repairs, rental expenses, and other losses resulting from the crash.

1. Do you Have Car Insurance?

The first thing you should do is to check your own car insurance for Collision Coverage.  Collision coverage means that your insurance company will pay to fix your car regardless of who was at fault in the accident. If you are injured in the accident and have hired us, this is something we handle for you.

If you have rental coverage, your insurance also will put you in a rental car while your vehicle is being fixed or for a time after your car is deemed totaled.

If your insurance company pays for your vehicle damage or your rental car, don’t worry.  They will turn around and “subrogate” against the other person’s insurance. That means that instead of your having to go fight with someone else’s insurance – they will do that for you.

2. Why Should I Go Through My Insurance if They Were at Fault?

We get this question every day. The main answer is speed.  Your insurance company has an obligation to you as their policyholder. They also should want to make you happy. They have different rules and obligations than someone else’s insurance company. They will start the property loss adjustment immediately.

But, also – this is what you pay for! So you don’t have to fight with someone else’s insurance company and you can get your car fixed and move on from this wreck.

If the accident is not your fault and your insurer is reimbursed, your insurance is not going to go up because Louisiana law under R.S. 22:1284 prohibits the insurance company for raising rates if you make a collision claim for an accident that was not your fault.

3. What if I have a Deductible?

If you use your insurance and have a deductible, your insurance company is going to go fight to get that back from the other person’s insurance too. Once that process is completed, they will send you a check for the amount you paid them.

If we are representing you with your injury claim and you cannot afford your deductible, we will advance that cost to you from your case so that you are not struggling financially after the accident and you can get back in your car quicker.

4. How Do I Start a Property Damage Claim?

You start a claim by calling the other driver’s insurance company and giving the policy number to the company. They will walk you through that process. Some companies let you do this online. If you are injured in the accident and have hired us, this is something we handle for you.

After you open the claim, it will be assigned to an adjuster who should call you in the next 24 hours.

5. What If I Don’t Have the Insurance Information on the Other Driver?

Unfortunately, this is happening more and more where our clients are getting into an accident and the police officer says “all of the information will be on the report” and gives you a slip of paper that just has a report number. This is terrible! This means that you don’t have the insurance information on the other driver and have to wait until the report comes out. Sometimes, the report takes over a month. This is totally unacceptable.

If you are reading this on the accident scene, insist on taking a photograph of the insurance card or the policy number the police wrote down. At very least, take a photo of the license plate. Often, we can run the plate for you and see what the insurance company is.

6. How Long Does the Insurance Company Have to Respond to Me?

This is the painful part. Even if you did everything perfectly correct, pursuant to Louisiana Revised Statute 22:1892(A), the at-fault driver’s insurance company has 14 days after an accident to “”initiate loss adjustment”. That means to start working.  In practical terms, starting loss adjustment generally includes actions such as:

• Acknowledging receipt of the claim.
• Assigning an adjuster or claims representative.
• Contacting the insured or claimant.
• Scheduling or performing an inspection of the damaged property or vehicle.
• Requesting information or documents needed to evaluate the claim.
• Taking other substantive steps to investigate the loss

That does not mean paying the claim, unfortunately. It also does not mean that they have to complete their investigation.

Insurance companies always look to see whether they have to pay before they have to pay.  This means, they need to confirm that the car involved in the crash was on their policy, that there are no coverage exclusions under the policy, that the person driving the car had permission to drive the car, that the car was not stolen, and that the accident was actually the fault of their insured.

In some cases, delays will arise when the insurance company cannot make contact with its insured – they are dodging their calls so that they cannot confirm a lot of these things. They, unfortunately, are not going to just take your word for it. Sometimes their insured completely lies about how the crash occurred – which is most unfortunate because you are going to become the victim of their lies and have to fight with the insurance company. A lot of times, the police report will answer a lot of these questions, but if it is not ready for a month, the insurance company may very well be within their right to not pay you or even send your car for an estimate during that time.

These are times where you may consider going through your own insurer to speed things up.

7. When Do They Have to Pay?

Under Louisiana Law, the insurer has 30 days after receiving satisfactory proof of loss to pay your property damage claim.  What does this mean?  The insurer has to get proof that they are on the hook for the damage – that their insured caused the accident, and that your vehicle sustained damages. Once they have this proof, the responsible insurance company must offer to settle any property damage claim, including a third-party claim, within 30 days of receipt of satisfactory proof of loss. Their failure to make an offer may subject the insurer to penalties and attorneys fees under Louisiana Revised Statute 22:1892(B).

8. Can I Speed Up the Process?

Maybe so.  If you are getting the runaround from the insurance adjuster, bring your vehicle to a shop and get an estimate for repair, and then send that repair to the insurance company.  If you have witnesses, get them to write statements to send to the insurance company, if you have a video of the crash – by all means, send that to the insurance company. Anything that helps them get satisfactory proof of loss sooner is beneficial to you. If you are injured in the accident and have hired us, this is something we handle for you.

9. Does the Insurance Company Have to Put Me in a Rental Car?

Yes and no.  If you are unable to use your car after 5 working days, they are responsible for paying the costs of alternative transportation for the entire time you were without transportation.  Many insurance carriers will put you in a rental car. If they do not, they are responsible for the rental car charges that you incur or any rideshare expenses that you incur.

If the insurer fails to make such payment within thirty days the insurer may also be on the hook for penalties, (not to exceed ten percent of such reasonable expenses or two thousand five hundred dollars, whichever is greater), and attorney fees.

10. Do I Have to Get My Vehicle Repaired at a Specific Shop?

No! The insurance company cannot require that the plaintiff have auto repairs performed at a specific shop. The plaintiff has the right to choose where repairs are made under Louisiana law according to La. R.S. 22:1892(D). However, the charges for those repairs still need to be reasonable.

11. What Do I Do if My Vehicle is Totaled?

Ultimately, this sucks. There’s no way to sugar coat that.  Most of us have our car because we are not in the market for another car. If we were, we would be out looking for another car. So, if your car is totaled – which means the cost to repair it makes it nonsensical to repair considering the actual cash value of the car, you are probably wondering what to do.

First, you want to be sure you are getting the right value for the car. Insurers have to pay you the actual cash value of the car – that is what the car is worth. Insurers look at the NADA or blue book value of the car. They will have to pay you in 30 days once they determine the car is totaled. During the time your car is totaled, they have to pay you the loss of use damages.

12. Do I have to Accept the Insurance Company’s Determination of My Vehicle Value?

No way! We often time dispute that. Here are some things you should do to increase the insurance company’s offer:

• Send them your own research of comparable vehicles for sale in your actual geographic location to show them you could not go get the same vehicle for whatever estimate they gave you
• Show them proof of recent improvements, service, etc. A 2020 Nissan Altima with four brand new tires you just spend $ on is different from a 2020 Nissan Altima with old tires.

Even if it is just a few hundred dollars of repairs, get them to pay! It’s their fault.

13. Are There Other Damages Available to Me?

There is a range of costs associated with property damage in addition to the repair costs. This includes loss of use of the vehicle, towing fees, storage fees, diminished value, lost profits caused by loss of use of the vehicle, and other consequential damages that the vehicle owner can prove, including aggravation. The biggest of these include loss of use and diminished value.

1. Loss of Use Damages

Even if you did not secure a rental vehicle, the insurer is on the hook for paying you compensation for the loss of use of your vehicle.

Louisiana courts have determined the norm for determining damages for loss of use is the rental value of similar or like property in addition to necessary expenses. Enriquez v. Safeway Ins. Co. of Louisiana, 52,425 (La. App. 2 Cir. 1/16/19), 264 So. 3d 648, 652. It is not necessary that a plaintiff actually rent or acquire a substitute or replacement vehicle to be entitled to loss of use damages.  Id. Loss of use damages are recoverable irrespective of the character of the use – business, family, or personal.  Nolan v. Liuzza, 301 So.2d 892, 894 (La. App. 4th Cir. 1974).

Additionally, damages for loss of use are recoverable for a reasonable amount of time after an automobile is determined or declared to be a total loss. Williams v. Louisiana Indem. Co., 26,887 (La. App. 2 Cir. 6/21/95), 658 So. 2d 739, 742. Louisiana courts have determined a reasonable time to be a period of time that allows a plaintiff or property owner to obtain or purchase a replacement for the loss or destroyed vehicle. This time period has consistently been held to be thirty (30) days. Id. Plaintiffs or property owners may be also awarded damages for inconvenience and mental anguish from the loss of use of their automobile, when such inconvenience or anguish is considerable. Alexander v. Qwik Change Car Center, Inc., 352 So.2d 188 (La.1977).

2. Diminished Value:

If you’ve been in a wreck that wasn’t your fault, your vehicle now has an accident history and you may be in for a diminished value surprise when you sell or trade in your vehicle.

Diminished value is the decrease in worth that a vehicle experiences after being involved in an accident. Consumers are not willing to pay as much for a vehicle that has a history of being in an accident as they would for a vehicle that was not in an accident. Since the value is now worth less as a direct result of the accident, the owner should be compensated for this loss.

Louisiana Revised Statute 9:2800.17 sets forth the requirements for asserting a diminished value claim:

1. Your vehicle is damaged, but NOT totaled;
2. You own your vehicle (i.e. not leasing or financing);
3. Someone else was the cause of the damage; and
4. You can prove by a preponderance of the evidence that even if this vehicle was repaired to the same condition as before the wreck, its fair market value is now less than its pre-wreck value.

In order to make a diminished value claim, you will often times need an expert opinion. A lot of considerations go into whether it makes sense to make a diminished value claim.

For example, trucks are considered to be tougher than cars, so minor damage accidents do not affect them as much. An average vehicle may not suffer as much diminished value as a higher-end, more expensive vehicle  The reason is that most luxury vehicle purchasers will not buy a vehicle with an accident history and if they do, they’re going to demand a significant discount. You should expect to recover a larger amount of diminished value for a newer car with lower mileage and less diminished value for an older car with higher mileage. As a general rule, the ideal prospects for getting diminished value are vehicles that are five years or newer, unless your vehicle was a luxury model or otherwise more valuable.

Some of the things to keep in mind when you are looking at whether it makes sense to make a diminished value claim:

1. How many wrecks the car has been in;
2. The value of the vehicle before the wreck;
3. The mileage on the vehicle;
4. Type of vehicle (luxury vehicles are obviously worth more); and
5. The current state of the resale market for vehicles.

14. What Do I Do if the Insurance Company Still Refuses to Pay Me?

If you have gone through all of the steps of the process and the insurance company is still refusing to pay your property damage, the next step is to file a lawsuit.  The only way to truly “make someone pay” is for a judge or jury to order them to pay.

15. Do I need a Lawyer to Help Me?

If you have reached Question 15 of this, the short answer is “Maybe!”

We handle all of the property damage for you when you hire us for an injury claim. If you have questions about your property damage claim, diminished value, or whether legal representation would benefit your situation, contact Kiefer & Kiefer. Our team can help you understand your options and determine the best path forward after a car accident.