Why You Shouldn’t Settle for the Insurance Company’s First Offer After a Car Accident
We all like to think that our insurance company is looking out for us, especially after a car accident. However, no matter how friendly and helpful the agent on the phone may seem, the insurance company’s primary goal is to settle for the least amount they think you’ll accept for your vehicle.
After a car accident, your first call—after the police—is typically to your insurance company. They’ll take your claim, send out an adjuster, and may even cut you a check right on the spot. While this process might seem quick and convenient, it’s not always in your best interest to accept the adjuster's initial offer.
Why the First Offer Isn’t Always the Best
If your car is a special edition, has modifications or customizations, is a luxury vehicle, or if you simply feel the offer is too low, consider seeking a second opinion. In these cases, it’s worth contacting an independent car appraiser who works for you—not the insurance company.
The Hidden Value: Understanding Diminished Value
Many auto policies contain a “diminished value” clause, though insurance companies are unlikely to bring it up. This clause compensates you for the difference between your vehicle’s market value before the accident and its value after repairs have been made. Even after repairs, a vehicle that’s been in an accident is generally worth less than one that hasn’t. This is known as diminished value, and your insurance company is responsible for compensating you for this difference.
From the Insurance Information Institute: “In the state of North Carolina, and all states except Michigan, if an accident is the fault of another driver, you would receive compensation for diminished value. This is because legally, the third party has an obligation to make the victim of the accident ‘whole’ again, including restoring the victim’s car to its pre-accident fair market value.”
In other words, the at-fault driver's insurance should not only cover the cost of repairs but also the difference in the vehicle's resale value after the accident. This compensation comes from the liability portion of the at-fault driver’s insurance policy.
If the at-fault driver is uninsured, your ability to receive compensation will depend on whether you have uninsured motorist coverage. About half of the states allow recovery for diminished value under this coverage, with North Carolina being one of them.
What You Need to Do
The burden of proof falls on you, the vehicle owner. Insurance companies typically require you to obtain an appraisal from an independent auto appraiser to validate your claim. This is where a trusted, unbiased appraiser can make all the difference.
Get the Compensation You Deserve with Auto Appraisal Network
Auto Appraisal Network is a nationwide network of professional, certified appraisers that specialize in helping vehicle owners navigate the complexities of diminished value claims. If you’ve been in an accident in the Charlotte, NC region and were not at fault, contact Auto Appraisal Network of Charlotte at (704) 703-4801 to find out if you’re being offered a fair amount from the insurance company. You can also visit https://autoappraisalnetwork-charlotte.com/ to learn more about diminished value, and the other types of appraisals we offer.
In many cases, we have helped clients secure thousands of dollars more than what the insurance company initially offered. Don’t settle for less than your vehicle is worth—let us help you get the compensation you deserve.
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