The Do It
Yourself Guide
to Settling Your
Property Damage
Claim
The information you need before talking to the
insurance adjustor about your property damage.
By Shelly M. Leeke, Attorney at Law
North Area
103 Laurel Avenue
Goose Creek, SC 29445
Phone: 843-277-6049
Email:
Info@LeekeLaw.com
Charleston &
Mt. Pleasant
222 W. Coleman Blvd.
Mt. Pleasant, SC 29464
(By Appointment)
LeekeLaw.com
Fax: 843-297-8497
Shelly Leeke Law Firm
North Area Office
103 Laurel Avenue
Goose Creek, SC 29445
Downtown & Mt. Pleasant
222 W. Coleman Blvd.
Mt. Pleasant, SC 29464
Phone: 843-277-6049
Fax: 843-297-8497
info@leekelaw.com
LeekeLaw.com
Copyright © 2010 by Shelly M. Leeke
All rights reserved. No part of this report may be reproduced, stored in a retrieval system,
or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the author.
Printed in the United States of America.
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S e ttl i ng Y o ur P r o pe r ty D am a g e C la i m
INTRODUCTION
Hopefully you have ordered this guide because you are a
planner, and you know that that the unexpected CAN happen, so it is always best to be prepared.
If you have had the unfortunate experience of being involved
in a car accident before, you know that settling your property
damage claim can be a real hassle and you don’t want to take
a chance on going through the experience empty handed ever
again. Or perhaps you are finding yourself after the accident,
calling attorneys to help you with the property damage and
you consistently hear, sorry, but we don’t handle property
damage claims.
If only your car has been injured and not your body, you may
be swimming through the murky waters of the insurance
company alone. That is why I have created this simple manual to assist you in settling your property damage claim. My
name is Shelly Leeke, and I represent victims who have been
injured in car accidents.
I receive many calls from innocent people such as yourself
who need some advice on how to deal with the insurance
company when you are not hurt, but you need your car repaired or even replaced.
Shelly Leeke Law Firm
North Area Office
103 Laurel Avenue
Goose Creek, SC 29445
Downtown & Mt. Pleasant
222 W. Coleman Blvd.
Mt. Pleasant, SC 29464
Phone: 843-277-6049
Fax: 843-297-8497
info@leekelaw.com
LeekeLaw.com
I hope this guide will assist you if the unexpected accident
happens. I welcome your feedback. If you would like to continue to receive my special reports and guides on accidents
and injuries, please e-mail or call.
Now, let’s get started.
Page 2
Negligence - the
failure to take the
sort of action a reasonable person would
take under the same
circumstances.
S e ttl i ng Y o ur P r o pe r ty D am a g e C la i m
YOUR RIGHTS WHEN YOUR
VEHICLE IS DAMAGED
When your vehicle is damaged because of the negligence of another,
you have certain rights according to South Carolina law and the
rules and regulations of the South Carolina Department of Insurance. If you are our client, in almost all instances our office will be
dealing with the other person's liability insurance company through
their adjuster.
REMINDER: Always limit your conversation with the adjustor to
property damage issues only. If you suffered injuries in the accident,
do not give statements to anyone about your injuries!
CAN I DO IT MYSELF?
Because it is rarely cost effective for you to hire an attorney to pursue
your property damage claim, this pamphlet has been prepared to assist you in negotiating your property damage claim with the adjuster.
Adjuster - someone who investigates
insurance claims
and/or property
damage claims and
negotiates an appropriate settlement.
If you are a client of ours, we will help you handle your property
damage claim as a courtesy. It is still always your duty to mitigate, or
minimize your loss. For example, delaying settlement of the property
damage can result in unnecessary storage fees, depreciating car values, and increasing repair costs which may give the insurance company an excuse not to pay for the entire vehicle damage claim.
WHERE DO WE START?
If your vehicle is damaged in a collision which was caused by someone else's negligence (fault), the first thing you will want to do is to
contact your insurance company and report the accident. You will
then want to contact the insurance company of the at fault party.
Once the claim is reported, there is often a waiting period for the insurance company to set up your claim and assign an adjuster. This
process may take 2-3 days from the date you first contact the liability
company. If you were injured in the accident and we represent you
for your injury claim, in our office, we will report the claim for you.
Often there will be two adjusters, one to handle the property damage
and one to deal with us on your bodily injury claim.
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FR - 10 - the green
sheet provided to you
by the officer at the
scene of a collision.
It can be used to obtain liability insurance information
and order the full
accident report.
Fair Market
Value - the value a
seller, not forced to
sell, and a buyer, not
forced to buy would
agree upon for a
specific item.
S e ttl i ng Y o ur P r o pe r ty D am a g e C la i m
You can often help our office obtain the name of the liability insurance company from the FR-10 (green sheet) provided to you by the
investigating officer at the scene of the collision. After we contact the
liability carrier by telephone, we always follow up with a written notice of your claim.
Once insurance company has notice of the claim, the insurance company starts its investigation. The adjuster assigned to your property
damage claim will have to complete their investigation of your claim
before they accept or deny the claim. Unfortunately, you will have
limited control over the amount of time involved before the insurance company makes a liability decision. In our office, if a client’s
claim is denied or it appears that the investigation phase is taking too
long, we will often suggest that you handle the property damage portion of the claim through your insurance company if you carry collision coverage. If the liability company later accepts liability, your insurance company will seek reimbursement from the at fault company
and they will return any deductible you paid out of pocket.
If the liability insurance company accepts liability and you do not
agree with the settlement offered by the adjuster, you have the right
to reject their offer, but this does not mean that you will necessarily
be able to recover any more monies on your vehicle. You should always request that the adjuster tell you the specific offer along with
the precise policy provisions and factual documentation the adjuster
is relying on in support of the offer.
PART ONE- TOTAL LOSS
WHEN IS A VEHICLE A TOTAL LOSS?
A motor vehicle is considered a total loss when the amount of the
repairs (including supplemental claims such as projected rental during the period of repair) equals or exceeds the pre-accident cash
value, which is sometimes referred to as the vehicle’s fair market
value.
Generally speaking, the liability insurance company is required to
pay the fair market value (FMV) - the value of the vehicle right before the collision occurred. In simple terms, the FMV is the value a
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NADA—the National Automobile
Dealers Association
publishes the
“Official Used Care
Guide” which insurance companies and
many banks use to
determine the fair
market value of a
vehicle.
Total Loss occurs when the fair
market value of the
vehicle is less than
the repair cost.
S e ttl i ng Y o ur P r o pe r ty D am a g e C la i m
not forced to sell, and a buyer, not forced to buy, would agree upon
for the vehicle immediately before the collision giving rise to the
property damage claim.
Insurance adjusters generally have a book value they use to arrive at
FMV. They may have some "wiggle" room based on the condition of
the vehicle, but there is generally little room for negotiation. Book
value is supposedly FMV, but there may be some room to negotiate
based on the condition of the car, etc.
Many insurance companies use the National Automobile Dealers
Association (NADA) publication entitled "Official Used Car Guide,"
which is published monthly. Other insurance companies have their
own methods to arrive at valuations. Some insurance companies consider their system superior to the NADA Book commonly used. Notwithstanding, no publication is completely accurate and they should
and are indeed only "guides". As such there is usually some basis to
negotiate in most cases.
Reminder: You should always continue making car payments even
if the car is totaled. You are generally contractually obligated to continue making payments, notwithstanding the condition of your vehicle. If you are behind on your loan payments, this will only make the
negotiation on your total loss much more difficult.
WHAT HAPPENS IF WE CAN’T AGREE
ON A VALUE FOR THE VEHICLE?
When your vehicle is a total loss, the adjuster will usually provide
substantiation for the FMV of your vehicle, including estimates,
evaluations and deductions used in calculating the payment, as well
as stating the source of these values.
Your vehicle is not worth more because you recently bought new tires
or replaced the engine. Usually these items are considered maintenance and they do not enhance the value.
Upkeep of your vehicle helps to maintain the value, not increase it.
Sometimes a new paint job will be considered, but usually not. Still,
be sure to advise the insurance company of any recent major expenses and be sure to provide the adjustor with copies of the
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S e ttl i ng Y o ur P r o pe r ty D am a g e C la i m
applicable receipts.
If your vehicle was in better than average condition prior to the collision the adjuster is required to give due consideration to this fact in
arriving at a value, but if your vehicle was not in good condition this
will actually lower the value of your vehicle.
WHAT IF I WANT TO KEEP MY VEHICLE?
Salvage Value the value of your vehicle’s parts, if sold,
after your vehicle is a
total loss. The salvage value is usually
between 10% and
25% of the total
loss value.
If the vehicle is a total loss and the fair market value of the vehicle is
agreed upon, then in exchange for a check, you must provide the liability insurance company with the title to the vehicle and possession
of the vehicle. In other words, the insurance company is not going to
pay you full FMV and let you keep the vehicle. This is because there
is usually some residual or leftover value in a totally damaged vehicle.
At the very least, the vehicle can be stripped and some of the parts
sold.
The value of what is left of the "total loss" vehicle is referred to as the
"salvage value". When the adjuster pays the FMV then you must sign
over the Title to the vehicle. If you wish to keep the vehicle then the
insurance company will pay you the FMV minus the “salvage value".
Usually the "salvage value" is between 10%-25% of the Total Loss
value. In other words, if you want to keep the vehicle you can, but
they will offer less money to allow you to keep the salvage. We generally will ask the adjuster to give us two offers, one if the insurance
company takes the vehicle and one if the client keeps the vehicle.
The liability insurance company usually will have a salvage dealer
who will purchase the salvage for the amount claimed as salvage
value by the adjuster (usually a few hundred dollars).
WHO GETS THE TOTAL LOSS CHECK?
If your vehicle is not financed, then the insurance company will write
you a check for the FMV and send it directly to you. If you have chosen to keep the vehicle, the check will include the FMV minus the
salvage value of the vehicle. You may then choose whether or not to
have the vehicle repaired.
If your vehicle is financed you will need to determine the pay-off to
the finance company.
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S e ttl i ng Y o ur P r o pe r ty D am a g e C la i m
The liability insurance company must pay the finance company. They
are required to do this by Law. If there is any money left after the pay
-off, they will write you a check for the difference.
Sometimes the check from the insurance company may have your
name and the name of the finance company on the check. Usually
you will need to endorse the check and turn it over to the finance
company. The finance company will pay-off the loan and refund the
difference to you as your equity in the vehicle.
“Gap”
Insurance - insurance you may
purchase when you
buy a vehicle that
covers the remaining
amount of an auto
loan when a car is a
total loss.
If the pay-off on the loan is greater than the check from the insurance company then the finance company gets the entire check and
you will still owe the finance company the difference, unless you had
purchased "gap" insurance. (Gap insurance is insurance you purchase when you buy the vehicle. It is sometimes required for leased
vehicles and may also be provided in financed purchases.)
If there is insufficient money to pay-off the loan and you do not have
any supplemental gap insurance, you may be “upside down” on your
loan (in other words, you owe more than the vehicle is worth). This
means, you will be stuck paying for the vehicle that you no longer
use. Notwithstanding, if this situation arises you can ask the dealer
where you purchased your vehicle if they would be willing to do substitution of collateral.
What happens in this situation is that the insurance company sends
the check for the FMV to the finance company, which in turn sends
the Title to the liability insurance company and transfers what you
owe on your vehicle to a new loan on another vehicle selected by you
and the dealer. This procedure allows you to settle the property damage claim as well as provide you with a replacement vehicle. Moreover, you may not be required to make another down payment on
the subsequent purchase.
You will usually be required to purchase the subsequent vehicle from
the same dealer because they must agree to this procedure.
Reminder: If you choose to go this route, you should definitely purchase gap insurance so you do not again find yourself upside down
on a loan.
Page 4
“
“Mitigate Your
Damages” - the
requirement that
someone injured by
another’s negligence
must take reasonable steps to reduce
the damages, injury,
or costs incurred and
to prevent them from
getting worse.
S e ttl i ng Y o ur P r o pe r ty D am a g e C la i m
WHO PAYS FOR TOWING AND STORAGE
The liability insurance company is responsible for all reasonable towing and storage charges until you and the storage facility are notified
that the insurance company will no longer reimburse the owner or
storage facility for storage charges. Once you are notified of this
situation you must take all reasonable steps to move the vehicle or
you will be responsible for the charges.
AM I ENTITLED TO A RENTAL VEHICLE
WHEN MY VEHICLE IS A TOTAL LOSS?
If your vehicle is not drivable, you are entitled to a rental vehicle
from the time of the collision until you receive an total loss offer
from the insurance company. Once the offer is made (assuming the
offer is reasonable), the insurance company is not technically responsible for a rental vehicle. Some insurance adjustors will allow you a
few more days if you have had trouble buying a replacement vehicle
or allow time for you to receive the check. However, they are not required to provide you with a rental vehicle after this time. You are
always required to "mitigate your damages".
Generally, you should be provided with a vehicle comparable to the
vehicle that was damaged. Some insurance companies have arrangements with automobile rental companies whereby a call from the liability company to the rental company will produce a vehicle to you
at a fairly modest cost which the liability insurance company will pay
for.
Mileage and gas are not paid for by the insurance company, only the
daily rental costs of the vehicle. Moreover if you do not have collision coverage, you will be required to purchase this coverage prior to
obtaining a rental vehicle. The liability insurance company is not required to pay for this expense. If you do have collision coverage
through your own insurance policy, you should generally decline additional coverage because your vehicle's collision coverage will usually
cover the rental car.
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S e ttl i ng Y o ur P r o pe r ty D am a g e C la i m
PART TWO– REPAIRS
WHAT IF MY VEHICLE CAN BE
Repairable - a
motor vehicle is
repairable if the cost
of repairs is less
than the pre-accident
fair market value.
A motor vehicle is repairable if the cost of repairs is less than the pre
-accident cash value (FMV). Do not have your car fixed without first
allowing the insurance company an opportunity to see the damage
and authorize the repairs. It will usually take at least three days to several weeks before the car is appraised, depending on the insurance
company, when the accident was reported, and if liability has been
accepted.
MUST I USE THE REPAIR FACILITY THE
INSURANCE COMPANY RECOMMENDS?
No. You may use the repair shop of your choice. Often, adjusters will
recommend that you use a particular repair shop. You are not obligated to use that repair shop and may use the repair shop of your
choice.
While you may choose the repair shop, you usually will not be able
to designate the parts that are used. Generally, you are entitled to a
repaired vehicle that is in a condition as good as it was just before
the accident. Keep in mind that unless your vehicle is brand new, it
is made up of used parts. This may mean that “like, kind and quality” parts may be used in the repair of your vehicle. The insurance
company also will typically not pay to have your entire vehicle repainted. If only a part of your vehicle was damaged, you are not owed
an entire paint job. Most body shops can match the color of your vehicle accurately, even if the paint has faded.
HOW MANY ESTIMATES SHOULD I GET?
You should get two estimates of repair. Personally inspect the damaged vehicle to make sure all of the damages are accounted for.
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S e ttl i ng Y o ur P r o pe r ty D am a g e C la i m
AM I ENTITLED TO A RENTAL VEHICLE
DURING REPAIRS?
If your vehicle is not drivable, you are entitled to a rental vehicle
from the time of the collision, until the repairs are completed.
If your vehicle is drivable, you are entitled to a rental vehicle starting
on the day that the body shop actually begins repairs. It is important
to remember that the adjuster for the insurance company knows how
many days it will take to repair the vehicle and will generally not allow any additional days for the rental vehicle. If the body shop is
slow in completing the repairs the insurance company will not pay
for any more time for a rental vehicle than was reasonably necessary
to repair your vehicle. It is always important to pick a reputable body
shop that not only stands by its repairs, but also will be responsible
for any delays.
Generally, you should be provided with a rental vehicle comparable
to the vehicle which was damaged. Some insurance companies have
arrangements with rental companies whereby a call from the liability
company to the rental company will produce a vehicle to you at fairly
modest costs which the liability insurance company will either pay
for directly or reimburse you later.
SUPPOSE SOMETHING GOES WRONG
AFTER THE REPAIRS ARE MADE? If you sign a release involving a repair to your vehicle, that release
does not bar you from later asserting a claim for damage to the vehicle which was unknown to you or the adjuster at the time you signed
the release. If the discovered damage was caused by the collision and
the damage could not be determined or known until the repair or
attempted repair of your vehicle, you have an allotted amount of
time after the repair to assert the claim for additional damages.
WHAT IF I HAVE ADDITIONAL
QUESTIONS?
If you have additional questions after you have read this brochure,
please do not hesitate to contact our office. This pamphlet answers
some of the most commonly asked questions about property damage
claims.
ABOUT THE AUTHOR
S H E L LY M . L E E K E
Shelly Leeke Law Firm
The attorney and staff at
Shelly Leeke Law Firm, LLC
are dedicated to protecting
the rights of accident victims. Our promise is to handle your case with personal
attention, zealous advocacy,
professionalism, and compassion.
Shelly Leeke Law Firm understands that accident can
be traumatic, life changing,
and emotionally devastating
events. We understand that
the selection of your personal injury attorney is an
important decision, which
may have far reaching consequences.
South Carolina attorney, Shelly M. Leeke, has been representing people injured in accidents for nearly a decade.
She is the founder of Shelly Leeke Law Firm, LLC. The firm focuses
on personal injury law, including automobile accidents, work injuries,
wrongful death, dog bite injuries, motorcycle accidents, pedestrian accidents, bicycle accidents, construction injuries, boating accidents, slip
and fall accidents, trip and fall accidents, and drunk driving victims.
The firm handles accident cases throughout the state of South Carolina, particularly in the low country counties of the state. Shelly has
represented clients throughout the state and nationwide.
If you, a family member or a friend has been injured by someone else’s
negligence, contact Shelly Leeke today for a Free, no obligation case
consultation at 843.277.6049.
We consistently provide up
to date information for accident victims. We believe
that knowledge is power
and offer free reports and
information for South Carolina residents.
Shelly Leeke Law Firm
North Area Office
103 Laurel Avenue
Goose Creek, SC 29445
Downtown & Mt. Pleasant
222 W. Coleman Blvd.
Mt. Pleasant, SC 29464
Phone: 843-277-6049
Fax: 843-297-8497
info@leekelaw.com
LeekeLaw.com
Shelly M. Leeke
Attorney at Law
November 2009
Local News
Legal
New Book Helps South
Carolina
Accident Victims
Goose Creek, SC- An attorneyauthor is giving voice to injured
people in South Carolina who are
in search of fair compensation
from their insurance companies
after an accident.
Personal Injury Attorney Shelly
M. Leeke wrote "The South Carolina Accident Book: Avoid the
Mistakes That Can Wreck Your
Injury Case." The book was written for South Carolina residents,
and is meant to be an informative,
practical, and easy to read guide
for accident victims and motorists.
In the book, Leeke addresses various aspects of the insurance
claims and litigation processes
that are common in personal injury cases, and is being offered
free to residents of South Carolina.
The book covers important topics
Low Country Today
such as, "What is a Personal Injury or Accident Case?", "Should
I talk to the insurance company
about my case?", and "Do I really
need an attorney?" The book also
discusses in depth the steps to
take after an accident, the critical
mistakes that can destroy your
injury case, medical treatment
considerations, why you may not
even need an attorney for your
case, and the legal process involved in resolving a personal
injury claim. The book includes
fifteen chapters spanning some 75
pages.
"Most of my clients come to me
after having been involved in devastating accident. I’ve seen many
unfortunate situations where an
injured accident victim was taken
advantage of by the insurance
company. Too often, the accident
victim has made a serious mistake
in their case before they seek the
advice of an attorney. Accident
victims have questions that need
answers immediately. They need
useful information available to
them, before they hire an attorney
or speak with an insurance adjustor." said Leeke.
Leeke says that she also wrote the
book to provide accident victims
with accurate information about
insurance claims and the legal
process. For instance, the book
addresses common myths associated with accident claims and
it offers an inside look at tactics used by the insurance companies to devalue accident
claims.
The book has been published
by Word Association Press and
is at Amazon.com. As a public
service, and for a limited time
only, residents in South Carolina will receive a free copy of
the book.
The Book can be ordered for
free at TheSouthCarolinaAccidentBook.com.
Shelly M. Leeke, Attorney at Law
RESPECTED
AUTHOR
The South Carolina Accident Book: Avoid the Mistakes That Can Wreck Your
Accident Case is intended to help accident victims who have been injured in
South Carolina. The book addresses various aspects of the insurance claims
and civil litigation processes that are common in personal injury cases. It covers a wide array of accident claims topics such as, “What is a Personal Injury
or Accident Case?”, “How Do You Determine the Value of a Personal Injury
Case?”, and “Do you really need an attorney?” The book also details how to
work with a claims adjustor, medical treatment considerations, and the difIf You Or a Friend or Family Member Would Like to Receive a
FREE Copy of This Book, Simply Complete This Form and Return it
To Our Office By Fax to 843-277-6049 OR Scan and Email the
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Shelly Leeke Law Firm
North Area Office
103 Laurel Avenue
Goose Creek, SC 29445
Downtown & Mt. Pleasant
222 W. Coleman Blvd.
Mt. Pleasant, SC 29464
Phone: 843-277-6049
Fax: 843-297-8497
info@leekelaw.com
LeekeLaw.com
Shelly M. Leeke
Author