How to Maximize your Property Damage Claim after a Car Accident, without an attorney in New Mexico
In New Mexico, a car is essential for daily life. Whether you were inside your vehicle during an accident or it was parked when damaged, your first concern is likely how to get back on the road. Without a vehicle, it is hard to get to work, get to appointments, and just live your life.
This guide will help you navigate the property damage claims process, work with insurance companies, and maximize your compensation without hiring an attorney.
Understanding First-Party vs. Third-Party Insurance Claims
One of the first decisions you’ll need to make after an accident is whether to file a first-party or third-party claim.
• First-Party Claim: This is when you file a claim with your own insurance company. It’s usually the faster option because you have direct access to your provider, and they are more responsive. In most cases, if you are not at fault, filing a claim won’t raise your insurance rates (if they raise your rates for being hit in an accident where you aren’t at fault, that’s a potential additional claim). However, you may have to pay your deductible upfront, which your insurer will later seek reimbursement for from the at-fault driver’s insurance (a process that can take over a year).
• Third-Party Claim: This is when you file a claim with the at-fault driver’s insurance. While this option avoids paying a deductible, it is usually much slower. If the other driver’s identity is unknown (e.g., in a hit-and-run) or their insurance company delays responding, you could be left without a resolution for weeks or months.
In most cases, starting with your own insurance company is the best option for a faster payout.
Getting a Rental Car After an Accident
If your car is inoperable after an accident, a rental car is a critical concern. Your ability to get one depends on your insurance coverage and the at-fault driver’s policy. You may be able to get one from the other driver’s insurance if you can identify them.
Using Your Own Insurance for a Rental
• If you have rental reimbursement coverage, your insurance will provide a rental car while your vehicle is being repaired or declared a total loss.
• This coverage only lasts for a limited time (usually 7 to 14 days).
• If you don’t have this coverage, your insurance will not provide a rental, and you’ll need to go through the at-fault driver’s insurance.
Going Through the At-Fault Driver’s Insurance
• You must wait for the other driver’s insurance to accept liability before they provide a rental.
• Some insurance companies will only reimburse you after you pay for a rental out-of-pocket.
• If the at-fault driver has low policy limits, they may not have enough coverage to provide a rental.
Best Advice?
• Check your insurance policy now to see if you have rental coverage.
• If you rely on the at-fault driver’s insurance, expect delays and push for a direct rental rather than a reimbursement.
Staying Proactive in the Claims Process
After filing a claim, you must stay on top of the process. Many people assume that insurance companies or repair shops will keep them updated, but that is rarely the case.
• Follow up daily with the insurance adjuster to ensure progress.
• Ask for a deadline when waiting for decisions on repairs or valuations.
• Check repair shop timelines to avoid unnecessary delays.
Being persistent can significantly reduce the time it takes to settle your claim.
Understanding Total Loss Valuations and How to Get More Money
If your car is declared a total loss, the insurance company will offer you a payout based on its market value. However, most people are unhappy with the initial offer because it is often lower than expected.
How Insurance Companies Determine Value
• Insurers assess the cost of repairs versus the car’s market value and salvage value.
• If repairs exceed the vehicle’s worth, they will total it out.
• Unfortunately, the amount they offer is usually less than what it costs to replace the vehicle in today’s market.
How to Negotiate for a Higher Payout
1. Ask for the insurance company’s valuation report. This includes the comparable vehicles (comps) they used to determine your car’s value.
2. Check the details carefully. Insurers often make mistakes, such as:
• Using comps from different states or markets.
• Misidentifying your vehicle’s model or trim level.
• Underestimating the condition or features of your car.
3. Find your own comps. Search websites like AutoTrader, CarGurus, or Kelley Blue Book for similar vehicles in your area.
4. Submit your comps to the insurer. If your research shows higher values, use this to negotiate a better offer.
While there are no guarantees, many people increase their payout by hundreds or even thousands of dollars simply by challenging the initial offer.
Gap Insurance: Protecting Yourself from Financial Loss
If you owe more on your car loan than the insurance payout, you could be stuck with a balance even after your car is totaled. This is where gap insurance helps.
• Gap insurance covers the difference between what you owe and what the insurance company pays.
• Without it, you may have to continue making payments on a car you no longer own.
If you are financing a vehicle, always consider gap insurance to avoid financial hardship in case of an accident.
Loss of Use: Another Way to Get Paid
In New Mexico, you may be entitled to loss of use compensation, even if you don’t get a rental car.
• The Cress v. Scott case established that if you are left without a vehicle due to an accident, you can claim compensation for each day you were unable to drive.
• To calculate loss of use, determine the daily rental cost of a similar vehicle.
• Insurance companies typically offer between $30 to $50 per day, but you can negotiate this amount depending on your vehicle. It has to be a reasonable substitute. They can’t say a sedan accommodates a truck.
This is an easy way to recover additional compensation that insurers may not offer unless you ask.
Why Attorneys Usually Don’t Handle Property Damage Claims
Many people wonder why personal injury attorneys don’t take on property damage-only cases. The main reasons are:
1. Attorneys work on contingency fees, meaning they take a percentage of the settlement. If they take a cut of your property damage claim, it reduces the amount available for you to buy a replacement car.
2. You can often handle property damage claims yourself by following the steps outlined above.
3. Involvement of an attorney can slow down the process. Insurers tend to delay claims when lawyers get involved, making it more efficient for you to handle it directly.
That being said, if you also have bodily injuries, an attorney can still help negotiate your injury claim while advising you on your property damage claim.
Final Takeaways: How to Get More Money for Your Property Damage Claim
• File through your insurance first for a faster resolution.
• Have rental coverage in your policy to avoid delays.
• Stay proactive by following up with insurance adjusters and repair shops.
• Challenge the insurer’s valuation by finding your own comparable vehicle listings.
• Claim loss of use compensation if you don’t get a rental car.
• Consider gap insurance if you have a car loan.
By taking these steps, you can maximize the amount you receive from your property damage claim and get back on the road as quickly as possible.
If you have questions or a bodily injury claim as well, give us a call 505-416-4150.
