Auto Insurance Claims: Auto accident, full time job, computer survey


Question
My daughter was rearended 10-09-07 and car was declared a total loss.  The other party insurance company wants to give her 1800 for the car loss but she owes 3600 on the car.  This wasnt her fault and i feel like she should be given more than that.  She was injured in the accident but no one seems to want to help her with that.  My daughter and i were sharing the car because we can not afford a car on our own as of now.  She has been going to the doctor for treatment on her neck and shoulder injury. But she hasnt been able to go like the doctor wanted her to because we have had a hard time trying to get rides to and from work and to the doctors she also goes to school full time and works full time job.  this accident has been very stressful on both of us so we have decided to seek the advise of a lawyer because of the low amount they offered for the car loss.  when she was hit from behind by the car behind her he hit her twice because once he hit her the car behind him hit him which pushed him back into her again.  The insurance companies are splitting the cost 75/25 but when we want to talk about medical bills and other expenses no one wants to listen.  Do you think we are doing the right thing by consulting with an attorney.  Thanks for listen.

Answer
Hi Kathy,
This is something that you and your daughter can handle without an attorney if you have the available time.First, I'll discuss the car damage.
The amount owed on the car is irrelevant, she is only entitled to fair market value for the car.
The insurance company has done a computer survey that covers a radius of 25-50 miles.  This survey lists identical or like kind of cars similar to your daughter.  
This survey shows the location, condition, mileage and the dealers lowest 'willing to sell for' price.  They have created an average value for these cars, and that is their offer.  they will be willing to give you a copy of this survey,
You need to purchase as many different newspapers as possible and keep copies of those listing cars identical or similar to your daughters.
Next, you need to visit used car lots and find the same or similar car, explain to the dealer that this is an insurance problem and have him give you a written statement about his car including condition, mileage and his lowest 'willing to sell for' price. You should try to get at least 5 dealer statements plus the newspaper ads.  Pick the 4 highest quotes and average them.  If this average is greater than the $1,800 offer, you have documentation to support a higher payment for her car.  Arrange a meeting with the claims adjustor, present your documentation and start negotiating for a higher payment.  Their offer is not engraved in stone and they will be willing to negotiate if the values you present are higher than their offer.  This may take more than one session with the adjustor.
As far as settlement for her injury is concerned, it is EXTREMELY important that she continue her doctor visits and any Physical Therapy that he has prescribed.  Her entire settlement will be based on the total of her expenses.  By treating and incurring expenses, this is the only proof she has that she actually had injuries.
Start creating two identical files, each containing her expenses such as ambulance, ER visit, doctor bills, physical therapy bills, CT scans or xrays and any MRI, documentation of any lost wages,
prescription drugs and the cost of transportation for each visit.
If she is seeing a Chiropractor, I strongly suggest that she switch to a MD and have him prescribe physical therapy.
All insurance companies including auto, health and medicare are extremely anti-chiropractor.  They will only consider about 50%-60% of the chiropractors bill toward settlement, but will consider 100% of expenses from a MD and physical therapy.  Once she is fully recovered, total all the expenses and multiply by 3.2 and write a written demand for that amount and also demand that the insurance company respond within 10-15 days.  You will also need to give them one copy of the files, so they can review her total losses.
Their first offer will be much lower than your demand, but your daughter will have two amounts on the table and can start the negotiation process.  This negotiation will take one to several months.  Your daughter should be able to reach an agreement for 2.5-2.75 times her total losses.
Every state has a statue of limitations within which you must reach a settlement, file a lawsuit or lose all rights for compensation.
If you live in Tennessee or Kentucky, that time limit is one year.  The majority allow 2 years and a small few allow 3 or more years.
If you feel that you don't have the time and/or ability to follow the above process, then immediately make an appointment with the very best personal injury attorney in your area for a consultation.  The first visit is usually free in every state.  After you and your daughter discuss the claim with him, you will be better able to decide as whether to handle the claim yourselves or secure his services.
I trust my answer has been helpful.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 11-04-07 7:10 PM PST