Virtually everyone who owns a motor vehicle has been involved in a fender bender at some time. More often than not, no one is hurt, so there is no real need to hire an attorney to assist in negotiating with the insurance company for the at-fault party.
The difficulty most of us have with these types of claims is we do not know what is considered fair or what we are entitled to receive. Insurance companies have a tremendous advantage in this process because they negotiate thousands of property claims a year. You may have one in your lifetime. Most of us, therefore, are at a decided disadvantage.
Two common questions you will have: When are you entitled to a rental vehicle? What are you entitled to receive for the damage to your vehicle?
On the first question, you are entitled to a rental vehicle because of the loss of use of your vehicle when it is not drivable, whether this is during the time your car is being repaired or the time in which your vehicle is being evaluated to determine whether it is a total loss.
If a rental vehicle is provided, you can only keep it for a reasonable period of time. This usually covers the time in which your vehicle is being repaired. In cases involving a total loss vehicle, you will be allowed a rental vehicle until an offer is made with some reasonable time period for your acceptance of the offer.
As to what you are entitled to for your damaged vehicle, you are entitled to have your vehicle repaired with the same or similar parts, or the fair market value of your vehicle on the date of the wreck if it is a total loss.
The insurance company is not required to pay for new replacement parts in most instances, but it must state in the estimate if used or refurbished parts are being used in repairing your vehicle. Parts of the same quality, performance and warranty must be used. If an aftermarket part is used in repairing your vehicle, any modification must be included in the estimate. If the repair shop finds additional damage while the vehicle is being repaired, you are entitled to have those costs paid as well.
You also are entitled to the loss of value of your vehicle if you can prove there is a quantifiable difference between the value of your vehicle at the time of the wreck and after the wreck. This is more difficult to establish.
If your vehicle has sustained damage of at least 25 percent of the value at the time of the damage, you are generally required to disclose that information when you sell that vehicle. Try to determine how much your repaired vehicle will be worth in the marketplace in comparison to a similar vehicle that is not damaged. A written statement from the dealer where you bought the vehicle, addressing the value issue, is very helpful.
Two good Web sites to check on the value of vehicles are www.nada.com and www.kbb.com.
If your vehicle's repair estimate is greater than 75 percent of its fair-market value, it must be rendered a total loss. Keep in mind that if your vehicle is totaled, you are not entitled to have your vehicle loan paid off. Insurance companies are only responsible for the fair market value of the vehicle at the time it was damaged. Your loss is the value of the vehicle, not what is owed on it.
Free publications regarding automobile insurance in North Carolina can be found at www.ncdoi.com.
Remember: An informed choice is a smart choice.
■ Mike Wells is an attorney with Wells Jenkins Lucas & Jenkins, PLLC, in Winston-Salem.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement