This column will address how you assure you are properly reimbursed for your property damages if you are in a wreck that’s not your fault. This is the second column in a series to assist readers in dealing with their personal injury and property-damage claims, sometimes without the need to hire an attorney in some circumstances.
Property damage generally: The legal test of your damages is what was the value of your vehicle immediately before the wreck and what was the value afterward. The difference is generally the cost of the repairs.
When the damage is more significant: You are also entitled to the reduction in value of the vehicle even after the repairs since it is now a significantly wrecked vehicle.
If the damage is at least 25% of the value of the vehicle at the time of the damage, you are required by law to disclose that information later when you sell the vehicle. You should receive, therefore, payment for the permanent reduction in value, an additional 10-15% of the value of the vehicle, depending on the circumstances.
If the repair estimate is greater than 75% of the value of the vehicle, the vehicle must be totaled.
To determine the value of your vehicle, check the internet to see what similar vehicles are worth. If you bought your vehicle from a dealer, ask the dealer what it is worth. Another useful resource is www.nada.com.
The age of the vehicle, the number of miles and the general condition of the vehicle are factored into the value. The older the vehicle is, the more difficult it will be to be paid much more for what you believe is the uniquely clean condition of your vehicle.
What quality of parts? You are entitled to have your vehicle repaired with the same or similar parts you had before the accident. The insurance company is not required to pay for new replacement parts unless your vehicle is new. But they must use quality parts of the same make, model and year of your vehicle that fit and work well. And ask the insurance company to use OEM (Original Equipment Manufacturer) parts if possible.
If the repair process finds additional damage while the vehicle is being repaired, you are entitled to be paid for that damage, too.
If your vehicle is totaled, you are entitled to the value of your vehicle at the time of the damage, less the salvage value, unless you let the insurance company keep the salvage and sell it. You are entitled to a rental vehicle for a reasonable period to locate another vehicle to replace the totaled vehicle.
What if you have a lien on the vehicle? If your vehicle has been totaled, you are not entitled to have your vehicle loan paid off if the loan payoff is more than the value of the vehicle. If you borrow money to buy your vehicle and there is a lien on the title, consider purchasing GAP insurance, which will pay the difference between what the insurance company pays you and any balance remaining on the loan, should your vehicle ever be totaled in a wreck.
Are you offered a fair settlement for your property damage? If you have worked with an attorney before, call and ask for some general courtesy advice about the fairness of the settlement offered, which your attorney should provide to you. If you do not know an attorney, contact the North Carolina Bar Association (800-662-7660) and an experienced practicing attorney will provide a 30-minute conference for no more than $50, which is generally well worth the cost.
Remember: An informed choice is a smart choice.
Next time: When should you hire an attorney? Or not? And what value will an attorney provide for their fee?
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