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Chicago Property Damage Lawyers
Experienced legal support for Illinois car accident victims navigating property damage claim disputes
Did you know car accident lawyers don’t just handle cases involving physical injuries? Every year, millions of car crashes result in property damage. The costs associated with this kind of damage can vary significantly from accident to accident, but it’s not uncommon for repair and replacement costs to far exceed survivors’ financial means.
If you suffered property damage in an Illinois car accident, insurance may cover at least some portion of your losses. The question, however, is whether your insurance company will cover the costs or if you need to file a third-party claim with an at-fault party’s insurance company. Sometimes, this causes confusion for claimants and may even lead to insurance disputes.
At Gainsberg Injury and Accident Lawyers, we can help you wade through the uncertainty that often follows property damage claims and help you get answers to your most pressing questions. If your property was damaged as a result of someone else’s actions, our experienced, approachable Chicago lawyers are prepared to protect your rights.
Reach out today for a free case review. We’d be happy to talk you through your legal options.
Table of contents
- Car accidents, repairs, and total loss
- What does property damage liability insurance cover?
- What is uninsured motorist property damage coverage?
- Insurance companies in Illinois
- Repair disputes and supplemental damage claims
- What happens if my vehicle is declared a total loss?
- Can I challenge a total loss valuation?
- What is diminished value?
- How can I resolve a dispute over a property damage claim?
- Chicago property damage frequently asked questions
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Car accidents, repairs, and total loss
When you get into a car accident of any kind, the chances are good that your vehicle will be damaged in some capacity. Sometimes, a little paint and a dent-puller will be all the mechanic needs; other times, you may end up having the car totaled. But what happens when the damage falls somewhere in between?
In Illinois, the total loss formula – or TLF – that insurance companies use is twofold: repair costs plus salvage value. They’ll take the likely cost of repairing the vehicle (including parts and labor) and add that figure to the amount of money the insurer could make by selling the car for parts. If this total exceeds the pre-accident value of the car, the vehicle will be considered “totaled.”
When insurers total vehicles, owners are sometimes left in a tight spot. The money they receive from their insurance company may not be enough to cover the cost of a new car. Being without a car for any period of time can also be a major source of inconvenience and lead accident victims to spend additional money on rental cars and rideshare services. All of these costs add up over time and can make an already difficult financial situation even worse.
What does property damage liability insurance cover?
Property damage (PD) liability insurance is part of your auto insurance policy. It typically covers any property damage you cause in an accident for which you’re at fault. If you damage another driver’s car, for example, your property damage liability insurance would be used to compensate the other driver (pursuant to the limits of your policy). In Illinois, you’re legally required to carry minimum PD coverage of $20,000 per accident.
Crucially, this coverage does not include the damage done to your own vehicle. In a situation like this, your damage could be covered by your collision policy. This kind of coverage is usually optional, however, so you may or may not have this coverage to fall back on in the event that you cause an accident.
If your property was damaged in an accident caused by someone else, you may be able to file a claim for compensation against the at-fault party’s insurance (assuming they have the necessary coverage).
What is uninsured motorist property damage coverage?
The insurance claims process gets complicated when an at-fault driver leaves the scene of an accident or doesn’t have proper insurance coverage. Uninsured motorist (UM) coverage can help drivers protect themselves in the event that they’re involved in one of these accident scenarios. In Illinois, drivers are required to carry minimum UM coverage of $25,000 per person, but this coverage only applies to injuries and not to property damage.
In order to have your property damage covered in cases like this, you’d need to have Uninsured Motorist Property Damage (UMPD). This coverage can help cover the costs of your property damage in the event that the at-fault driver in your case is uninsured. Unfortunately, this coverage only applies in situations where the at-fault driver is identified. If the driver in a hit-and-run accident cannot be identified, you’d likely need to rely on collision coverage to address your vehicle damage.
UMPD coverage is not required in Illinois, so not all drivers carry this insurance. If an uninsured driver damages your property and your insurance policy won’t cover the damage, you may need to pursue alternative means of recovering compensation from the at-fault party.
Insurance companies in Illinois
Here are just a few of the insurance companies that our clients have worked with that serve the Chicagoland area:
- Allstate
- Amica
- State Farm
- Progressive
- Nationwide
- Farmers
- The Hartford
- Mercury
- General Casualty
- GEICO
- USAA
Our team has experience working with many local insurance companies. If you’re having trouble communicating with your insurer or are struggling to understand the specifics of your coverage, we may be able to help you get to the bottom of things.
Repair disputes and supplemental damage claims
Property damage claims can be frustrating because they are somewhat subjective. An insurance company may dispute the value of your losses or try to claim that accident-related damage actually pre-dated the collision. Additionally, different mechanics can come up with different valuations for the same job. If the insurance company’s estimate differs from the repair facility’s, you may be left struggling to cover the difference.
We also see disputes arise due to something called “supplemental damage.” Sometimes, a mechanic will discover additional damage while working on an initial repair. This can turn a seemingly minor job into a much larger undertaking that comes with additional costs.
When this happens, repair shops may need to submit supplemental estimates to the insurance company in order to request additional compensation. Sometimes, claimants get lucky and have these requests approved without incident. Other times, supplemental damage claims trigger additional questions and disputes over what repairs are actually necessary and what costs are deemed reasonable by the insurer.
What happens if my vehicle is declared a total loss?
As we discussed above, an insurer might declare a vehicle a total loss if the repair value plus the salvage value exceeds the actual cash value (ACV) of the car. If your car is totaled, you should expect to receive compensation from your insurer based on the actual cash value of your vehicle. This value is calculated based on a few different factors, including:
- The car’s age
- Your mileage
- The condition your car was in prior to the accident
- Current local market values
- Vehicle features and enhancements
- Depreciation
Valuation methods can vary, which can lead to insurance disputes. Sometimes, vehicle owners walk away feeling like the insurance company undervalued their car, leaving them with less cash to put toward a new vehicle. This can create additional hurdles for claimants – both financially and logistically.
Can I challenge a total loss valuation?
If you believe a total loss offer is too low, you may be able to challenge the insurance company’s valuation. You’ll need to provide ample evidence to support your claim. Comparable vehicle sales can be valuable in this regard, as well as maintenance and repair records that speak to the condition of your vehicle prior to your accident.
Sometimes, these discrepancies are actually the result of clerical errors, so it can be helpful for a claimant to carefully review the insurer’s methodology for possible mistakes or oversights. An experienced car accident lawyer may be able to help in the event that you’re dissatisfied with your total loss offer.
What is diminished value?
If your vehicle isn’t totaled and you’re able to get your repairs covered, you may walk away thinking you've exhausted all your options. Unfortunately, some accident survivors fail to consider the long-term impact of an accident on their car’s value.
Even if your car appears good as new after a trip to the mechanic, the mere fact that it sustained damage in an accident could affect its future resale value. Many buyers are less willing to pay full price for a vehicle that’s been involved in a collision.
This creates another opportunity for compensation in some cases. Diminished value claims are meant to compensate vehicle owners for the difference between their car’s pre-accident and post-repair values. In Illinois, accident victims may be able to file diminished value claims against an at-fault party’s insurance policy. In some cases, claimants may have additional avenues via their own insurance coverage, but it depends on the specifics of their policy.
Diminished value claims aren’t appropriate or permissible in all accident scenarios, so it’s important to speak to a knowledgeable insurance representative or legal professional if you’re considering filing this kind of claim.
How can I resolve a dispute over a property damage claim?
Partially due to the motivation to make a profit and partially in reaction to rampant insurance fraud, some insurance companies routinely deny valid property damage claims. Your insurance policy is a contract between you and the insurance company. You agree to pay your monthly premiums, and they agree to cover you for valid claims. If your own insurance company unreasonably and vexatiously refuses or delays payment of a covered claim, you may be able to seek relief under Section 155 of the Illinois Insurance Code.
If you hit a dead end trying to work with your insurance company, you can file a complaint with the Illinois Department of Insurance or hire an attorney to file a lawsuit. If you are successful in recovering the covered amount and showing that the insurance company acted vexatiously and unreasonably under Section 155, you may be entitled to:
- The amount of the original claim that should have been paid
- Reasonable attorney fees and other costs
- A discretionary statutory penalty of up to $60,000, subject to Section 155’s other limits
At Gainsberg Injury and Accident Lawyers, we may take a property damage claim on a contingency fee basis, so you won’t have to pay attorney fees unless we win compensation for you. It depends on the nature of your claim and the insurance company’s allegedly vexatious and unreasonable conduct.
We offer free consultations on every property damage case. Insurance companies tend to take a completely different stance when you hire an attorney to represent you. Do not try to go up against the big insurance companies and their tactics without an experienced Chicago insurance dispute lawyer fighting for your interests.
Chicago property damage frequently asked questions
Insurance companies typically review photographic evidence of damage as well as repair estimates, maintenance records, mileage and other information about the car’s pre-accident condition to arrive at a valuation.
If the insurance company declares your car a total loss (aka “totals” it), they’ll pay you the actual cash value of the car based on the car’s age, mileage, and condition, as well as other market-related factors.
Policyholders can choose a repair shop of their choice. However, if the shop charges more than the insurance company’s suggested shop, they may have to pay the difference.
If additional damage or costs are uncovered while your car is at the mechanic, you may be able to file a supplemental damage claim for the added expenses.
Rental reimbursement under your own policy depends on its terms. In a third-party claim where liability is reasonably clear, the at-fault insurer must pay reasonable and necessary, substantiated rental costs in proportion to its insured’s liability. You should make sure to speak with your insurer as well as the at-fault party’s insurer to establish any rental car benefits available to you.
As much as we wish we could give you a straight answer here, the reality is that the timelines in these claims are highly variable because they depend on several different factors (e.g., the nature of the damage and the facts of the case).
If you believe your own insurance company is vexatiously and unreasonably delaying payment of a covered claim, you may be able to seek relief under Section 155. Consult with an insurance property damage dispute lawyer as soon as possible if you find yourself in this position.
Towing and storage costs may be recoverable in a property damage claim, but it depends on the fine print of your policy and the purported “reasonableness” of the expenses you’re claiming. For example, an insurance company may be less inclined to pay for a tow halfway across the state when there are multiple repair shops located nearby.
It’s wise to keep copies of anything and everything related to your claim. This includes things like repair estimates, tow truck invoices, storage bills, records of conversations with insurance representatives, and anything else that may be relevant in your case.
It may not serve you to accept the first offer you receive from an insurer. If you’re concerned that the insurer is undervaluing your car or repair costs, a vehicle property damage claim attorney may be able to run interference for you.
Schedule a consultation with an experienced Chicago property damage lawyer who will protect your interests
If your vehicle sustained damage in a Chicago car accident, you don’t need to advocate for a fair outcome on your own. If you plan on going toe-to-toe with an insurance company, you may need aggressive representation from a Chicago property damage lawyer who will demand justice on your behalf.
At Gainsberg Injury and Accident Lawyers in Chicago, our lawyers will review your insurance policy and evaluate your claims based on your coverage. We can also investigate the circumstances of your accident and offer legal advice about your case when applicable.
Call, text or visit our local office at 77 W. Washington St., Suite 1215 to get the answers you’re looking for about your legal options.
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