Marshall Loeb’s Daily Money Tip, September 29, 2006, on the www.MarketWatch.com website had to cause heartburn in the belly of the insurance beast. Loeb, the former editor of outstanding publications such as Fortune, Money, and Columbia Journalism Review, offers a few suggestions, compliments of Money magazine, to help consumers make the most of car insurance claims after an accident.

While the first couple of points in Loeb’s article are expected and routine – basic consumer advice that has been available for years - the balance of the article cautions consumers about their dealings with insurers and claims processes. We’ll begin this analysis with an appetizer of some of the light and fluffy parts in preparation for the tastier meat of the article.

Loeb begins the routine advice  by reminding consumers of their responsibility to prove their losses to an insurer. The bottom line is simply that consumers shoulder the burden of proof if they want to be paid. Additionally, Loeb suggests learning policy language as well as written exclusions in the insurance policy before it becomes necessary to make a claim against an insurer.

In first-party claims where one’s own insurance company is paying for a loss, the only limits that exist are those that were agreed upon in the language of the insurance contract that was purchased. For third-party claimants (those who are victims of another’s negligence and who will be collecting from the at-fault party or their insurer) there are no limits short of what it takes to be restored to a position equal to the unharmed state immediately before the loss.

“[After an accident occurs] consumers should try to keep good records,” says Loeb. In particular, he adds that accident victims should write down their own version of the events that transpired, identify witnesses, get names and license numbers of other drivers, and document the accident scene and damage with photographs. Finally, consumers should obtain a copy of the police report and notify their insurance company as soon as possible.

Where’s the gristly part for insurers you ask?

I suppose Loeb was easing into it a bit since the balance of the article challenges several strategies insurers attempt to impose in an effort to settle claims as inexpensively as possible – use of network DRP shops and aftermarket parts are a couple of examples of strategies Loeb warned against. This is the meat of the article – the part insurers will likely have a hard time swallowing - the part to which consumers should really pay attention. I’ll paraphrase it to a degree. If you’d like to read Marshall Loeb’s Daily Money Tip: Make the Most of Car-insurance Claims, for yourself, click the link at the top of this article and enjoy. With that said, we’ll proceed to state the remainder of Loeb’s points and add some additional commentary that we hope consumers will find helpful when dealing with auto losses.

• Keep good notes on any conversations regarding a claim. Insurers probably won’t like it, especially insurers that are ethically-challenged. But, consumers need to have good documentation to instill accountability among insurers and break even on their claims.

   

•   Be careful of the insurer’s direct repair partners who may be prone to compromise quality in order to appease the insurer’s concern for a cheap price. While consumers may be promised a faster turnaround time, it won’t mean much if their car has to go back to the shop several times for supplemental repairs – things that were not fixed right the first time. If a consumer uses the insurer’s direct repair shop (DRP) they should present the shop with a pre-repair agreement making clear the expectations they have and the promises made by the insurer on the shop’s behalf.

   

•   Insist on the use of OEM parts. Why? Loeb said what we’ve been preaching for years. Original equipment parts fit better and are less likely to rust than generic parts. ‘Nuff said.

   

•   If an insurance company deems a car a total loss after an accident, the adjuster will most likely try to offer a settlement that is to some extent shy of the car’s actual cash value (ACV). If the damaged car was in exceptional condition or had recent repairs or upgrades that enhanced its value, these facts should be documented. With proof in hand one can present a counter offer to the insurer. Consumers don’t have to take the first settlement that is offered, or any offer that is shy of the amount it takes to be made whole.

   

•   Loeb’s article concludes with advice to keep track of additional expenses incurred as a result of an accident. Examples include but are not limited to medical bills, bills for repairing property damage, babysitting, long-distance phone calls, lost wages, etc. In short, insurance exists to indemnify (make whole) insureds and claimants.

Safe Collision Repairs would like to remind consumers that it is a good practice to have repaired vehicles examined by a post-repair inspector to calculate losses of warranty and ineligibility for inclusion in manufacturer’s used car certification programs. Often, thousands of dollars are owed to a claimant or insured, even when their car appears perfectly repaired. We would also like to take this opportunity to salute Mr. Loeb for publishing this informative information and for being a voice that’s unafraid to speak up for the rights of consumers who have been involved in car accidents.

content & design 2002-2008 David Williams and SafeCollisionRepairs.com

About Safe Collision Repairs

For more than ten years, David Williams of Wheelersburg, Ohio's Safe Collision Repairs has worked with consumers and attorneys in the tri-states of Ohio, Kentucky and West Virginia to expose unsafe auto repairs and maximize recovery on auto insurance claims. Some of the company's services include Post-Repair Inspections, Prepurchase Inspections, Auto Damage Assessments, Lemon Law Investigations, Expert Court Testimony and Diminished Value Calculations using an advanced version of Network Information Communication's WreckCheck program.

Inquiries can be directed to: Safe Collision Repairs David A. Williams Post Office Box 70 Wheelersburg, Ohio 45694 (740) 456-1111 (740) 355-4056

Disclaimer

The content expressed on this website and in the article above represents the opinions of David A. Williams. Williams is neither an attorney nor public insurance adjuster, but is an expert, consultant, and writer specializing in the field of automotive collision repair and valuations. The information provided herein is not intended to be a substitute for legal or insurance advice. Because collision repair is a continually evolving science, any text, materials or links found herein are provided without claim or guarantee to their accuracy or completeness.