I. Is Your Car a “Total Loss,” or is it worth repairing?In dealing with the insurance adjuster regarding damage to your car, it is

important to know certain terms used in the insurance industry. One such

term is a “total loss.” “Total loss” typically means that the damage to your

car is significant enough that to repair the car would require repair dollars

equal to or more than 70 – 75 % of the car’s value. This percentage varies

from company to company. In other words, it is “not worth it” to repair your

car. This situation usually arises either when the damage to the car is very

significant, the car is very old, or both. If a car worth $10,000 needs $8,000

in repairs, it will likely be a “total loss.”

II. Handling Your “Total Loss” ClaimIf your car is a “total loss”, the insurance company typically owes you the

fair market value of your car immediately prior to the collision. Put another

way, the insurance company owes you what your car was worth (not what

you paid for it). The insurance company may do a “market survey” to

determine this amount. This basically amounts to finding out what cars like

yours (same year, make, model, mileage, condition, and accessories) are

selling for in your area. One way for you to do your own “market survey” is

to check your local paper for similar cars for sale, and check car valuating

services like;

• Kelley’s Blue Book, or kbb.com • N.A.D.A., or nada.com • Craiglist.com • Autotrader.com • For a fee, you can also get an expert opinion.2

You can negotiate with the insurance company based on what your

“survey” revealed, if it is higher than their Insurance Company’s. Some

adjusters will be willing to pay you more for your car if you can provide

support for your valuation. Remember also to tell the insurance adjuster if

your car recently had new parts added or service performed. This may add

value to the car.

If the insurance adjuster has a lower evaluation, ask for his basis. If the

basis is a “CCC” report, ask for a copy. Examine it carefully to determine

whether the cars in that report are truly accurate reflections of the value of

your car. You can call the owners of the car in the CCC report to determine

flaws that create a lower value, and then tell the insurance adjuster about

those flaws and ask him to run another report.

_________________¹ Some people now carry “gap” insurance and are entitled to the outstanding amount on their auto loan if that amount is higher than the value of the car.² We recommend Jason Yurcic at 505-203-4553, or Sonny Chavez with Auto Appraisers at 994-1340.

The insurance adjuster will usually make two o�ers: (1) The entire value of

the car, where you will be expected to “sell” the damaged car to the

insurance company; and (2) The value of the car, minus the salvage value

where you wish to keep the damaged car

Most car owners value their vehicle more highly than your ordinary buyer in

the market. We all have the best knowledge of our car’s maintenance, and

even, at times, some degree of attachment to our cars. Unfortunately, the

jury instruction is clear – only “fair market value” can be awarded. In this

respect, you must try to demonstrate the most accurate and favorable value

of your car you possibly can, through the use of the websites mentioned

above.

At the end of the day, the insurance company may not be reasonable about

the value. It is di�cult to decide whether to file a lawsuit over a di�erence

of a few hundred dollars. Lawsuits take time, and money, to resolve,

and may or may not be worth filing only over the property damage.In the

meantime, of course you need a car. If the decision is di�cult, please give us a

call. We may be able to include a property claim in a lawsuit for personal injury

– but it will take months, if not years, to resolve.

III. Handling Your “Repairable Damage” ClaimMany of the same principles mentioned above are applicable here. You may

drive or tow your car to a body shop of your choice, for an independent

estimate of the repair cost. You may also allow the insurance adjuster to

inspect your car to perform his/her estimate. You may do both of the above.

Most shops will agree to repair your car for the amount of the insurance

adjuster’s estimate/check. If the shop finds further damage to your car than

originally estimated, the shop usually calls the insurance company for you and

tells them it will take more money to repair your car.

If the damage to be repaired is not significant, you may choose to simply live

with the damage to your car, and cash the insurance adjusters check for the

repair. (If the damage presents a safety issue, the insurance company may

require that you complete the repair.) The insurance company still owes you

for the amount it would take to repair the damage. If you do not agree with

the insurance company damage estimate, you are free to get your own

estimates and negotiate with the insurance company from there.

If you believe the repair was done improperly or inadequately, we

recommend you consult with another experienced and independent body

shop mechanic to evaluate the repair.

_________________³ Body shops that we believe have performed professional work in the past are: Don Chalmers at 890-2270; Mr. B’s (contact Scott Benavidez) at 255-7022; Mauer’s.⁴ See the shops recommended in the footnote above

Diminished Value. In many situations, the wreck to your car may result in

“Diminished Value” of your car. If you sell your car in the future, any potential

buyer will likely perceive that the value is lower because of the wreck.

This is particularly true when there has been substantial damage, such as frame damage,

which obliges you to disclose such damage to potential buyers. If you strongly feel there is

substantial damage that would result in diminished value, you have a few options:

1. Compare blue book value of your vehicle model (without damages), to Carmax’s

estimate of its value with the repaired damages:

a. Get the blue book value of your car through Kelley’s Blue Book, or kbb.com;

N.A.D.A., or nada.com; Craiglist.com; Autotrader.com; eBay.com.

b. Take your car to Carmax and ask them for a quote to buy your vehicle. Leave a

copy of your repair invoice on the seat. (Do not tell them specifically about the

repair or diminished value when you ask to have it valued. Leaving the invoice on

the seat will give them the information they would need.)

c. Subtract the Carmax value from blue book trade-in value (or divide the latter by the

former). The di�erence (or quotient), is one way of showing how much the value has

diminished.

2. Pay an expert to give an opinion of “Diminished Value” that can be demanded in an

insurance claim.5 (As with any expert’s opinion, be prepared for an opposing opinion

from the defendant’s adjuster or defense counsel.)

_________________⁵ We recommend Jason Yurcic at 505-203-4553, or Tom Lincoln at 235-8084.

3. Use an online service. It will be a bit less expensive, but will not carry quite the same

weight since there is no in-person examination of your vehicle. Four online services

are: ICAN2000.com/dvdirect;WreckCheck.org;CollisionClaims.com;CollisionConsulting.com.

V. Storage FeesIf your car is taken to a tow yard lot or other storage facility after the collision,

that facility will be charging storage fees usually by the day. This is something

the insurance company usually pays, however, remember IT IS YOUR

RESPONSIBILITY to get your car removed from the facility in a reasonable

time period. If you allow the car to be stored longer than that, the facility will

usually file a lien on the car to pay the storage fees, meaning they will sell

your car to pay its own fee. Conversely, if there is no insurance to pay, or the

insurance company initially denies responsibility, you should remove the

vehicle to be stored for free, or as little as possible, pending further argument

about their responsibility to repair or total the vehicle.

IV. Other Damages You May Be Entitled ToRental and/or Loss of Use. In most cases, the insurance company will first

investigate and determine whether its insured is responsible for the collision.

After determining its insured is responsible, the insurance company may

provide a rental car, if your car must be evaluated, and/or if it must be

repaired. The insurance company will estimate the damage to your car, and

should make you an o�er within thirty (30) days. You are entitled to a rental

car while your vehicle is in the process of being repaired (which sometimes

includes the period of time that the insurance adjuster is estimating the repair

cost). When you first speak with the adjuster, ask about a rental car if you

need one. Ask the adjuster if he/she has any rental car agencies that you

should use and how much the adjuster agrees to pay. The insurance

company owes you reasonable rental car expenses.

If you do not rent a car during the period of time the car is being repaired, the

insurance company still owes you for “loss of use.” “Loss of use” means the

reasonable value of a rental car (a model similar to your damaged car), even if

you do not rent a car, while your car is being repaired. Typically, this is similar

to rental car expenses, so anywhere from $20.00 to $50.00 per day or above.

Currently, under New Mexico law, loss of use damages are available for

repairable property but not for completely destroyed property. As unfair as it

may seem, if your vehicle is a “total loss,” you will likely not be able to recover

loss of use damages or a rental car. It will be up to the car owner to replace it,

or recover a check for its pre-wreck value, as soon as possible.

VI. ConclusionRemember when you are dealing with insurance adjusters to ask a lot of

questions, especially if you do not know what the terms mean. Ask the

insurance adjusters to pay for everything you feel you are entitled to including

a rental car or loss of use. Finally, use common sense in what costs you incur

after the collision so that those costs will be reasonable and more likely to be

reimbursed by the insurance company.

If you have di�culty in negotiating this part of the claim, please let us know.

While we do not usually take a fee in handling property damage, we

understand that in very troublesome situations, a letter from a lawyer may be

necessary. If necessary and pragmatic, we can also include the property

damage claim in your lawsuit for personal injuries.

Very truly yours,

Bert Parnall

Parnall Law Firm, LLC

HANDLING YOUR “PROPERTY DAMAGE”

CLAIM

HANDLING YOUR “PROPERTY DAMAGE”

CLAIM

( W I T H A N I N S U R A N C E C O M P A N Y )

HANDLING YOUR “PROPERTY DAMAGE”

CLAIM( W I T H A N I N S U R A N C E C O M PA N Y )

Parnall Law Firm, LLC

( W I T H A N I N S U R A N C E C O M P A N Y )

This handout, provided by the Parnall Law Firm, is

intended to provide you with information that you

may find helpful in maximizing the money you

receive for damages associated with your car

following an automobile accident. This primer is

not intended to provide legal advice about any

specific situation, since each case turns upon its

own particular facts.

PLEASE NOTE: WHEN YOU SPEAK TO THE ADJUST-

ER, SPEAK ONLY ABOUT PROPERTY DAMAGE –

NOT THE WRECK, INJURIES, OR TREATMENT.

2025 San Pedro Dr. NE

Albuquerque, NM, 87110

Phone: (505) 268-6500

Fax: (505) 268-8708

www.HurtCallBert.com

www.HurtCallBert.com