Do Attorneys Handle Non-Injury Total Loss Car Claims?
Having worked as an auto adjuster, I’ve often encountered policyholders and third-party claimants who were dissatisfied with their total loss settlement offers on non-injury claims. In moments of frustration, these individuals would sometimes threaten to bring in an attorney to negotiate the terms. However, in my experience, I’ve never actually faced a situation where an attorney was called in over such disputes. This leads to an interesting question: Do attorneys even take on cases that involve only vehicle damage, as opposed to injury claims?
From what I’ve observed, it seems uncommon for attorneys to take on cases solely centered around disputed vehicle damages. The primary focus for most legal professionals tends to lean heavily toward injury claims, where the stakes—and potential settlements—are significantly higher. Nevertheless, there may be instances where an attorney might see value in representing a client in a total loss case, particularly if the potential for recovery is promising or if there are complex factors at play.
As adjusters, our role primarily involves mediating these disputes and attempting to find amicable solutions without legal intervention. But it’s worth considering whether there’s a niche for attorneys in the realm of property damage claims, especially in cases where the discrepancy between the offer and the vehicle’s perceived value is substantial.
Have any fellow adjusters out there actually encountered a situation where an attorney was brought in to contest a total loss offer on a non-injury claim? If so, it would be intriguing to hear about how the case was handled and the outcomes involved. Such insights could shed light on whether there’s an emerging trend or if these are simply outliers in the world of auto claims.
Yes, attorneys can and sometimes do take on cases involving disputes over total loss settlements, although they are less common compared to personal injury claims. The decision for an attorney to handle such a case would largely depend on the specifics of the situation, the potential for recovery, and the complexity of the case.
When Attorneys Might Get Involved
Large Discrepancies or Unfair Practices: If the insured or claimant believes the insurance company’s valuation of the total loss is significantly lower than the market value, and they have strong evidence to support this claim, an attorney might find it worthwhile to take on the case. This is especially true if there are allegations of unfair practices or bad faith on the part of the insurer.
Complex Valuation Issues: Cases involving rare, classic, or customized vehicles can present complex valuation issues that may attract legal representation. In such cases, determining the actual cash value can be contentious and may require expert testimonies, which lawyers are adept at handling.
When There Are Broader Implications: Sometimes, disputes might arise in the context of perceived systemic issues or when a precedent-setting outcome could influence broader industry practices. Attorneys may take such cases as part of a larger strategy to address or challenge these practices.
Practical Advice for Insureds and Third-Party Claimants
Gather Evidence: Before considering legal action, insureds should collect as much evidence as possible supporting their valuation claim. This includes appraisal reports, comparable vehicle values, and any other documentation that demonstrates the vehicle’s worth.
Seek Mediation or Appraisal: Often, insurance policies contain appraisal or arbitration clauses for resolving value disputes. Utilizing these alternative dispute resolution mechanisms can be a more cost-effective and faster solution than litigation.
Consult an Attorney for an Initial Assessment: If the settlement amount is significantly below expectations and other dispute resolution methods have failed, an initial consultation with an attorney can help assess the merits and potential outcomes of the case.
Why Attorneys Might Decline
While there are scenarios in which an attorney might become involved, there are also reasons why they might decline these cases:
Low Potential Damages: Legal cases can be expensive and time-consuming to pursue. If the potential financial gain does not justify the effort and cost, many attorneys will advise against pursuing litigation.
Clear Policy Contract Terms: If the policy language clearly supports the insurance company’s valuation method and it’s unlikely that an argument for breach of