Insurance Claim Info...

[PowerJrod]

Hey guys, it's been brought to my attention that there are a lot of great people here that are not very knowledgeable regarding insurance.... specifically insurance claims.
Just wanted to let you know that I worked all different types of insurance claims and processes behind the closed doors and if anyone has questions regarding claims I can answer them. I mainly worked under AllState and Farmers but they all get handled the same way regardless of which insurance company. So if you have any questions Don't hesitate to ask! (Mine as well put my experience to good use lol)

 

[Juli_hoop]

I recently had to file an insurance claim. 100% not our fault and was covered under the person that hit us. Total damage was around $2,800 and was done with OEM parts at a reputable body shop. My question is, is it worth fighting for a diminished value claim being a new truck with just under 15k miles? 2019 Ram Rebel....

 

[PowerJrod]

I recently had to file an insurance claim. 100% not our fault and was covered under the person that hit us. Total damage was around $2,800 and was done with OEM parts at a reputable body shop. My question is, is it worth fighting for a diminished value claim being a new truck with just under 15k miles. 2019 Ram Rebel....

That all depends on the actual damage that was sustained. Most of the time...an accident doesn't really diminish the value of a vehicle unless there was a small amount (or more) of "none structural frame damage" this is why if you ever look up the value of a vehicle in NADA or KBB...there's not a section asking "was this vehicle in an accident?" Or something to that effect. A fully (properly) repaired vehicle that is in excellent condition is still excellent regardless of what unfortunate events have taken place. The only thing that will alter this though would be if it has a salvage/rebuilt title, etc...
Hope this helps!

 

[Juli_hoop]

That all depends on the actual damage that was sustained. Most of the time...an accident doesn't really diminish the value of a vehicle unless there was a small amount (or more) of "none structural frame damage" this is why if you ever look up the value of a vehicle in NADA or KBB...there's not a section asking "was this vehicle in an accident?" Or something to that effect. A fully (properly) repaired vehicle that is in excellent condition is still excellent regardless of what unfortunate events have taken place. The only thing that will alter this though would be if it has a salvage/rebuilt title, etc...
Hope this helps!

That's good to know. No structural damage/frame damage was caused, It was a minor fender bender. Only parts replaced were the driver side front fender, liner inside the wheel house, and rim since it got scuffed up a bit, all with OEM parts and professionally done. They even inspected the wheel bearings and control arms for damage and there was none. Also got a free alignment.

 

[Reverse]

Our 2014 Ram 1500 RC got into an accident, a pretty minor rear-end collision (minor for the truck, the little sedan's hood looked like an opened sardine can).
Damage was basically: new bumper and a minor paint repair on one corner where the bumper had touched the bodywork. So, nothing structural.

5 years later we go trade the truck, and are told that it's worth $5000 less than book value because the report shows that cop wrote it up as a 'major accident', even though it wasn't. Sucked to be me.
I got in touch with GEICO and through them with the original appraiser, and after a long conversation talked him into writing a check for the difference.

So, (for me) lesson learned: get a hold of the police report asap and make sure there's nothing in it that isn't taken into account for the appraisal.

 

[laramie4x4]

i was once hit by someone and all that was needed was a minor paint job (about size of a quarter). i was surprised to learn the cost was $1,000. the other guy's insurance paid for it so i did not care. question is: does body shop jack up price if they know insurance is paying for it?

 

[PowerJrod]

That's good to know. No structural damage/frame damage was caused, It was a minor fender bender. Only parts replaced were the driver side front fender, liner inside the wheel house, and rim since it got scuffed up a bit, all with OEM parts and professionally done. They even inspected the wheel bearings and control arms for damage and there was none. Also got a free alignment.

Ok in that case there is no justification on the value diminishing since everything is back to factory specs with OEM parts. Diminished value can happen at times when there are cheap-non OEM parts that coordinate with where the damage was too. If you were just to hypothetically have it evaluated as a trade in at a dealership...Carfax will show an accident reported but it doesn't actually effect the value, it's just a FYI thing.

 

[PowerJrod]

Our 2014 Ram 1500 RC got into an accident, a pretty minor rear-end collision (minor for the truck, the little sedan's hood looked like an opened sardine can).
Damage was basically: new bumper and a minor paint repair on one corner where the bumper had touched the bodywork. So, nothing structural.

5 years later we go trade the truck, and are told that it's worth $5000 less than book value because the report shows that cop wrote it up as a 'major accident', even though it wasn't. Sucked to be me.
I got in touch with GEICO and through them with the original appraiser, and after a long conversation talked him into writing a check for the difference.

So, (for me) lesson learned: get a hold of the police report asap and make sure there's nothing in it that isn't taken into account for the appraisal.

This is a great example on how some dealerships will try to take advantage of customers who are not aware of what factors can and cannot effect a trade-in value. Documentation in every aspect is important...even the minor details can make a difference.

 

[PowerJrod]

i was once hit by someone and all that was needed was a minor paint job (about size of a quarter). i was surprised to learn the cost was $1,000. the other guy's insurance paid for it so i did not care. question is: does body shop jack up price if they know insurance is paying for it?

Yes and no. So in this case insurance companies will actually negotiate with body shops depending on circumstance. If this was a body shop that was recommended by the insurance company...then that was the lowest estimate that they received. However; if it was a place that you picked and it was already verified through the insurance company as well as the shop they may in fact charge more of a premium price...sometimes it just depends on the shop and the circumstance.

 

[Airbeijing]

This is a great example on how some dealerships will try to take advantage of customers who are not aware of what factors can and cannot effect a trade-in value. Documentation in every aspect is important...even the minor details can make a difference.

This is also a perfect e

Our 2014 Ram 1500 RC got into an accident, a pretty minor rear-end collision (minor for the truck, the little sedan's hood looked like an opened sardine can).
Damage was basically: new bumper and a minor paint repair on one corner where the bumper had touched the bodywork. So, nothing structural.

5 years later we go trade the truck, and are told that it's worth $5000 less than book value because the report shows that cop wrote it up as a 'major accident', even though it wasn't. Sucked to be me.
I got in touch with GEICO and through them with the original appraiser, and after a long conversation talked him into writing a check for the difference.

So, (for me) lesson learned: get a hold of the police report asap and make sure there's nothing in it that isn't taken into account for the appraisal.

This is also a perfect example of a Diminution Of Value claim. Most people think they need file a DoV claim right after an accident. However, nobody know how much and if the vehicle has lost any value. You will only find out when you actually trade or sell the vehicle. In this case, it was for $5k. So only then GEICO was able to pay that. Keep in mind that in certain states, you only can make a DoV claim if you are the third party (claimant).

Our 2014 Ram 1500 RC got into an accident, a pretty minor rear-end collision (minor for the truck, the little sedan's hood looked like an opened sardine can).
Damage was basically: new bumper and a minor paint repair on one corner where the bumper had touched the bodywork. So, nothing structural.

5 years later we go trade the truck, and are told that it's worth $5000 less than book value because the report shows that cop wrote it up as a 'major accident', even though it wasn't. Sucked to be me.
I got in touch with GEICO and through them with the original appraiser, and after a long conversation talked him into writing a check for the difference.

So, (for me) lesson learned: get a hold of the police report asap and make sure there's nothing in it that isn't taken into account for the appraisal.

This is also a perfect example of a Diminution Of Value claim. Most people think they need file a DoV claim right after an accident. However, nobody know how much or if the vehicle has lost any value. You will only find out when you actually trade or sell the vehicle. In this case, it was for $5k. So, then GEICO was able to pay that because there is an established loss of value. Keep in mind that in certain states, you only can make a DoV claim if you are the third party (claimant).

 

[PowerJrod]

This is also a perfect e

This is also a perfect example of a Diminution Of Value claim. Most people think they need file a DoV claim right after an accident. However, nobody know how much and if the vehicle has lost any value. You will only find out when you actually trade or sell the vehicle. In this case, it was for $5k. So only then GEICO was able to pay that. Keep in mind that in certain states, you only can make a DoV claim if you are the third party (claimant).

This is also a perfect example of a Diminution Of Value claim. Most people think they need file a DoV claim right after an accident. However, nobody know how much or if the vehicle has lost any value. You will only find out when you actually trade or sell the vehicle. In this case, it was for $5k. So, then GEICO was able to pay that because there is an established loss of value. Keep in mind that in certain states, you only can make a DoV claim if you are the third party (claimant).

Typically it's the at-fault drivers insurance company that would pay the claimant. The problem is that there's no actual defined way to calculate loss of value, it's not 3%, 5% or 10%. It will go off of what has been damaged vs what's been fully repaired. If you ever look for a used vehicle online and you find one that has accident on the Carfax. Check the book value through Carfax...I guarantee you it's selling for the same price as a used one without an accident reported. This is what I was referring to in my earlier post. Theres never any harm in pursuing LOV (insert lmao) but just know that it's not something that is required to be paid out unless it's from major damage that was repaired. (legit major damage).

 

[jdmartin]

Thanks for the offer. I got one going on right now - not me, but a friend, and I want to lead him right.

Two weeks ago his wife driving, he in passenger seat, girl turns directly in front of them to make a left hand turn and they hit her broadside. Totaled their car and put both of them in the hospital - her with a broken elbow and severe broken leg that just completed its second surgery to repair, he with 6 broken ribs. Both are elderly and on Medicare. He was discharged from the hospital after 5 days, she just got discharged after almost 2 weeks and will have a number of months of rehab.

The girl who caused the accident was a teenager on her parent's policy and was cited for failure to yield. My question really centers around a settlement. Their insurance limits are 50k each/100k total for underinsured. Don't know yet what the other driver's limits are, but let's assume they are the same (lots of people get minimum insurance here in TN). Medicare is covering their medical bills but is going to seek repayment from the other driver's insurance company. Will they have to get an attorney to get any kind of settlement from the other insurance company if the Medicare bills eat up all of the liability?

 

[PowerJrod]

Thanks for the offer. I got one going on right now - not me, but a friend, and I want to lead him right.

Two weeks ago his wife driving, he in passenger seat, girl turns directly in front of them to make a left hand turn and they hit her broadside. Totaled their car and put both of them in the hospital - her with a broken elbow and severe broken leg that just completed its second surgery to repair, he with 6 broken ribs. Both are elderly and on Medicare. He was discharged from the hospital after 5 days, she just got discharged after almost 2 weeks and will have a number of months of rehab.

The girl who caused the accident was a teenager on her parent's policy and was cited for failure to yield. My question really centers around a settlement. Their insurance limits are 50k each/100k total for underinsured. Don't know yet what the other driver's limits are, but let's assume they are the same (lots of people get minimum insurance here in TN). Medicare is covering their medical bills but is going to seek repayment from the other driver's insurance company. Will they have to get an attorney to get any kind of settlement from the other insurance company if the Medicare bills eat up all of the liability?

Hiring an attorney is more of a personal decision. First off...I've never heard of Medicare covering medical bills that was from an auto accident...usually that's covered under the auto insurance medical portion of the at-fault driver. So this becomes a two part answer...the auto insurance medical should've been the first thing to go into effect prior to even involving Medicare at all. To me this sounds like a case of not knowing all of the facts. Was the at-fault drivers insurance not adequate enough to provide for the medical bills? Even if it wasn't...the claimants insurance will fill the gap and then they will seek reimbursement from the at fault driver directly. There's too many variables here to provide any clear cut recommendations.

 

[PowerJrod]

If anything...I would try to settle with them prior to hiring an injury attorney. Especially since at this point you wouldn't even know what kind of settlement you'd be looking at...if any.

 

[OldMarine]

while the car/truck may have been repaired properly, there definitely is an effect on value....as soon as someone runs a Car Fax and sees an insurance claim, they want the car for less..I'm a licensed Auto damage appraiser in Mass.

 

[PowerJrod]

while the car/truck may have been repaired properly, there definitely is an effect on value....as soon as someone runs a Car Fax and sees an insurance claim, they want the car for less..I'm a licensed Auto damage appraiser in Mass.

No doubt that they'll want the car for less...then they'll try to turn around and sell it for the same book value as an identical vehicle without any accident history. There is no set determined percentage amount in value loss for a vehicle that's been in an accident. A salvaged title vehicle is usually 20-25% but that's only for one that's been considered a total loss.

 

[Adams2123]

From my experience in the court system (I spend a lot of time in court due to my job) diminished value can be fought. The diminished value check the the insurance company sends you (especially State Farm) is way lower than the actual value lost in an accident. This can be fought in Magistrate/small claims courts.

 

[Brutal_HO]

Have you ever seen a carrier not pay a claim because a truck was (not grossly) over the door sticker payload or over a State's (known) legal length?

IOW, carriers pretty much pay for "stupid" AFAIK, but perhaps not negligence?

Does at fault play a part in those decisions?

 

[PowerJrod]

Have you ever seen a carrier not pay a claim because a truck was (not grossly) over the door sticker payload or over a State's (known) legal length?

IOW, carriers pretty much pay for "stupid" AFAIK, but perhaps not negligence?

Does at fault play a part in those decisions?

If they're deemed to actually be at fault then their insurance company pays back your insurance company for what they paid out for your claim and deductible. But at fault insurance company doesn't always accept full 100% liability. Sometimes they will only accept 80% or 50%...depends on the claim and details of accident.

 

[PowerJrod]

But as far as the at fault person making those decisions...no. never.