Things to Know About Your Property Damage Claim in Georgia

After a wreck, there are several possibilities as to what will happen to your car. If the cost to repair your car is greater than the value of the car, the insurance company will likely declare your car to be a total loss. If the cost of repairs is less than the value of the car, then they will likely pay to have it repaired.

If the insurance company does not declare your car to be a total loss, once you’ve accepted the check or given consent for your vehicle to be repaired, you have likely agreed to settle your property damage claim for that amount.

You may also have a claim for the diminished value of the vehicle if it has been repaired rather than declared a total loss. Since your car has been in an accident, it is now worth less than before, even after the repairs. This claim does not apply to all vehicles. The insurance company will usually not advise you of this right; you must ask for it.

Additionally, the insurance company may pay for a rental car for you to use while your car is being repaired (also known as a “loss of use” claim).

If you have any other claims for personal property damaged in the accident, you must reach an agreement on those claims as part of your property damage claim.

Unfortunately, in Georgia, if your car is declared to be a total loss, then the insurance company is only responsible for the average market value of your car, regardless of whatever you may owe on a loan for the car. In other words, if your car is worth $5,000 but you still owe $8,000 on your loan, the insurance company is only responsible for $5,000. In that case, the lienholder of the car would receive $5,000 and you would be left without a car and still owing money on your previous car. This is not just or fair, but it is the law. Check to see if you carry “gap insurance” if you are in this situation. If you owe $2,000 on your car loan and the car is determined to be worth $5,000, then your lienholder would receive $2,000 to pay off the loan, and you would receive the balance of $3,000. The insurance company is not necessarily responsible for paying off your entire loan, nor are they responsible for getting you a new car. Use independent sources to evaluate the market value of your car. In addition, make sure that the insurance company is paying you for tag and title fee/costs, as well as sales tax. Below are several websites that can assist you with this process. The insurance company may not initially offer you a fair amount for your vehicle; you may need several reliable estimates from such websites or dealers to counter with.

www.kbb.com

www.Edmunds.com

www.nadaguides.com

Property damage claims do not always have satisfactory results. That is why it is important to research the value of your vehicle before accepting any offer from the insurance company.