Property Damage Claims/Lawsuits (Without a Lawyer)

At no charge, our lawyers help clients with their property damage claims.   We offer this service as a courtesy with no charge to the injured client.  However, most accident claims do not involve physical bodily injury and are handled without retaining legal representation because it is almost impossible to find a lawyer for a property damage only claim. Most personal injury firms are not interested in property damage claims and, honestly, if they do, they will probably charge you hourly and the attorneys’ fees will exceed the value of the lawyer’s services (because handling contingency fee property damage cases is a path to nowhere for almost any lawyer worth their weight in salt)  For this reason, the responsible party’s insurance company may attempt to seize the opportunity and induce the injured person to accept less than he/she has a right to receive further victimizing the victim.  We offer this guide to help you understand some common problems which can arise in situations such as these and assist injured parties in protecting their rights.  While this guide focuses on applicable Maryland law, it can be used as a basis of understanding for most jurisdictions. (But, obviously, this is not legal advice in or our of Maryland.)

If the accident was the other woman’s fault, why can’t I get a rental car?

You clearly know you are not the responsible party, but the other driver’s insurance company refuses to admit liability.  As a result of their refusal, you are without a car.  While a common source of frustration, the answer is one that can be appreciated from both sides:  The insurance company has a legal duty and contractual obligation to their insured to investigate any claim made against their insured’s policy. This is not offered as a courtesy to their client, but required in accordance to Maryland regulation for the protection of the insured party.  Part of this duty is for the insurance company to receive a statement from their insured which sets out his/her version of the accident.  More than likely, the insurance company has not yet received that statement and until they do so, they will not allow for a rental car.

The best way to circumvent this issue is to add a rental provision to your own collision or comprehensive policy if possible.  You may also have to pay out-of-pocket for your rental car and settle for reimbursement once the insurance company has “admitted” liability.

If I choose to use my collision coverage, what about my deductible?

This is a common question. In the short-term, you may be forced to cover the cost of the deductible until it can be reimbursed to you in final settlement.  Either your own insurance company will look to the responsible party’s coverage for payment once the matter is settled or your attorney can include that amount with your damages claim and attempt to recover the deductible amount as a part of your case.

My car loan is for more money than the insurance company is willing to give me?  What can I do?

Maryland’s legal stand-point, as with most states, is that the injured party is entitle to either the cost of repairing the vehicle or for the fair market value of the vehicle should it be deemed a “total loss.”  Generally, fair market value means the amount of money you could receive for the car should you sell it to another person.  The Kelly Blue Book (KBB) is the largest private valuation company in the United States and is most likely the source which will be used when determining the fair market value of your automobile.  Should the insurance company offer any amount near the KBB value, then, it is most likely the fairest and most accurate estimate of value you will receive for your vehicle.

Most states, including Maryland, do not recognize replacement value as a reasonable method in determining what you will receive for your vehicle which poses a problem for two types of people: 

People who owe more for the vehicle than its fair market value are particularly susceptible. This group of people may very well find themselves paying on a loan for a vehicle which has been totaled according to fair market value standards. A solution for this problem is to obtain Gap insurance. Gap insurance covers the difference between what the car is worth and what you owe on the car and comes into play should your car be considered to have more damage than what it’s worth to repair it.  That being said, if you are reading this and do not have that type of coverage, the horse is already out of the barn, so to speak.

People who own older vehicles which by their standards are more valuable as reliable sources of transportation than the vehicles could be sold for at fair market value.  In other words, the vehicle may be only worth $3000.00 to someone who purchases it from you or a dealership; however, because it is reliable transportation that ensures you make it to work each day, it is probably worth more than that amount to you. Because the laws in this area are not favorable to the car owner in this situation, there simply are no easy solutions for this particular group of people.

Do I have to use the insurance company’s repair shop?

No.  The choice of who repairs your vehicle is totally up to you.  However, the insurance company will only pay the standard, reasonable cost of repair.  If your repair shop is unable to repair your vehicle for the amount allowed by the insurance company or if additional work is required beyond the initial, approved estimate, then the mechanic will need the insurance company’s approval to ensure the overage does not come out of your pocket.  One reason to consider the insurance company’s preferred repair shop is that since it already works within the insurance company’s limits, it may be easier to have any unexpected charges or overages approved.

 I am responsible for storage fees?  Is this true?

Generally speaking, yes.  In Maryland, the injured party has a duty to mitigate damages in vehicle property damage cases.  This protects the insured in that the injured party is unable to allow a vehicle to sit in storage accruing fees while waiting for the insurance carrier to assume liability or arrange for repairs.  An injured party’s best choice in this case is to contact the insurance company and ask them to remove the vehicle from the toe company’s storage facility to a facility of their own to avoid further storage fees.  Otherwise, the only option is to pay the storage fees if you have the ability to do so.

The insurance company refuses to send me a check until they have communicated with the vehicle’s financing company.  Why?

In the case of a totaled vehicle, the insurance carrier is required to obtain unencumbered title to the vehicle from the finance company.  Before the finance company will release the title to the insurance company, the company must forward the pay-off amount for the car finance company if less than fair market value.  Once this is done, the finance company will release the title and their lien against the vehicle and any remaining amount will be forwarded to you.

How long can I keep the rental car?

Normally, an injured party is entitled to the rental vehicle until their vehicle is repaired or until the insurance company issues final payment for the total loss of the vehicle.  Should there be a reasonable delay – and forests have been lost in an effort to define “reasonable” – in the process, the insurance company will normally allow for an extension.

The vehicle involved in the accident was a truck, but they are asking for me to accept a compact.  Can they do that?

No.  The rental vehicle should be comparable to the one it is to replace.  This is most important in situations where the damaged vehicle was being used as a work truck or in the general course of your business.  The insurance company is obligated to provide you with another vehicle that is suitable for the same purpose as the damaged vehicle.

If I have personal injury claims, will my attorney charge me for representation in the property damage claim?

If we are your lawyers, no. But, obviously, we don’t speak for all Maryland accident lawyers.   Our law firm does not accept a fee for property damage cases (or the client’s personal injury protection insurance (PIP) for that matter).

How do I pursue my own property damage claim in court?

Representing yourself in court in a property damage claim is more often than not very difficult. But there are a lot of little things you can screw up to kill your case.   In Maryland, for example, Maryland Courts and Judicial Proceedings Code Annotated ยง 10-105, controls property damage claims where the full claim is more than $5,000.00.  In fact, all states have procedural rules and laws that a non-lawyer must follow the same as a licensed attorney.  Judges go easy on property damage victims without a lawyer but, ultimately, Ignorance of the law is not a defense.  In other words, if you are unable to retain an attorney for your property damage claim, it will be your responsibility to learn and understand the rules and properly assert your claim in court. 

Substantively, you must be prepared to show proof of any damage assertions you make.  You will need to have your own estimate of vehicle damage, or if it is a total loss, your own figures which establish fair market value from a trusted source, such as the KBB or the National Automobile Dealers Association (NADA) Guide to assist you determine the fair market value of your vehicle.  If you are concerned with the loss of value at resale, information services such as CARFAX make finding accident information easier to obtain and also assist to determine what another person is willing to pay for a used car.

Often the insurance company’s position that there has been no loss until the vehicle is actually sold for less than its fair market value.  In order to prove this type of claim, you will need to be prepared with a lost value report which you can request, for a fee, from a certified vehicle appraiser.  You may even need to use this appraiser as a witness in court, depending on the property value and the procedural rules in your state.

Our automobile accident attorneys handle serious – only serious – injury auto accident cases in Baltimore-Washington area and have prevailed at try in hundreds of car accident cases.  Our attorneys have also successfully settled thousands of cases for client injured in automobile accidents,  having recovered millions of dollars in compensation for victims by settlement or trial in 2011 already.  If you or someone you love has been injured, or someone you love has been killed in a car accident, call us at 800-533-8082 or click here for a free consultation via the internet.