Utah Personal Injury Law Firm Blog

I often get telephone calls from people who were involved in a Utah car accident and their car was badly damaged and the insurance adjustor is telling him the car is a "total loss." The people on the phone feel like the adjustor's settlement offer for the car is unfair, but don't know what to do.

If you have been in an accident and are trying to handle the property damage portion of your claim, be sure to follow these tips:

1) If you were injured in the car accident, contact a Utah personal injury lawyer and discuss your case before signing insurance papers regarding the property damage. A personal injury lawyer can ensure your bodily injury claim is not limited by the papers you have been asked to sign.

2) The insurance company is obligated to put you in a rental car that is the same size as the car you were driving at the time of the accident. Do not let them put you in a small car that saves them money. Also, if you do not use a rental car for a period of time after the accident, you can ask the insurance company to compensate you $20-$25 for every day you went without a car.

3) You do not have to accept the property damage adjustor's first settlement offer for you car. Most insurance companies determine the value of your car by finding comparable vehicles as close to your home as possible. They are not interested in the Kelly Blue Book value of your car. So be prepared for their settlement offer by finding a similar car, with similar features and milage on autotrader.com or your local classifieds. If the adjustor's offer is less than the comps you have found, send the adjustor a counter-offer with copies of your comps.

4) Be sure not to keep the rental car longer than permitted or you will be responsible for the additonal charges. The insurance company is only responsible for providing a rental car from the date of the accident until they make a "reasonable offer" for the replacement of your car. If the adjustor makes an offer and tells you to return the car, be sure to return the car, even if its before your settlement check has arrived.

I often get calls from accident victims who are frustrated with the at-fault driver’s insurance company because their car was totaled in the accident and the insurance company is offering less than what they owe on their car. My first response is to ask them if they purchased “gap insurance.” Sadly, most callers have never heard of gap insurance, but wish someone would have told them about it sooner.

Gap Insurance is a small insurance policy on your car loan that kicks in when the amount the insurance company will pay for your totaled or stolen car is less than what you actually owe on the loan or lease. When you purchase a car, make sure you ask if gap insurance has been included because most car dealers or auto loan officers leave Gap Insurance out of the sales agreement or loan documents without asking you if you want it. If you don't have it, you could be upside down on your loan for an accident you didn't cause.

Insurance companies only have to pay what your vehicle is worth (not what is owed) when it is totaled in an accident. So if you are leasing or financing at least 70% of the value of your car or you rolled debt from your last car into your current loan, gap insurance will save you money if your car is totaled or stolen.

Contact your lien holder to find out if gap insurance was included in your loan. If it wasn't, most lien holders will let you add gap insurance (even if you didn't get the coverage when you bought the car) since they would lose the collateral for their loan if the car is totaled in an accident. Most gap insurance policies average $5 to $10 a month. You may never need to use it, but for the price, it's a good thing to have!