Auto Physical Damage Claims: Vehicle Damage Insurance Guide
Auto physical damage claims cover vehicle damage from collisions, theft, vandalism, and weather. Learn about total loss, diminished value, and how a Public Adjuster can help.
Auto Physical Damage — Not Bodily Injury
Auto physical damage claims cover damage to your vehicle itself — not injuries to people. This is an important distinction. If you have been injured in an auto accident, you need a personal injury attorney (see our personal injury page). A licensed Public Adjuster handles the property damage side: the cost to repair or replace your vehicle and recover any additional losses related to the physical damage.
Types of Auto Physical Damage Coverage
- Collision coverage: Pays to repair or replace your vehicle when it collides with another vehicle or object, regardless of fault. Subject to a deductible.
- Comprehensive coverage: Covers damage from non-collision events including theft, vandalism, hail, falling objects, animal strikes, fire, and flood. Also subject to a deductible.
- Uninsured/underinsured motorist property damage (UMPD): Covers damage to your vehicle when the at-fault driver has no insurance or insufficient coverage. Availability and rules vary by state.
Total Loss vs. Repairable
When your vehicle is damaged, the insurer will determine whether it is a total loss or repairable. A vehicle is typically declared a total loss when the cost of repairs exceeds a certain percentage of the vehicle's actual cash value (ACV) — usually 70% to 80%, depending on the state and insurer. If your vehicle is totaled, the insurer pays you the ACV of the vehicle minus your deductible.
Total loss valuations are one of the most common areas of dispute in auto claims. Insurers frequently undervalue vehicles by using comparable vehicles in poor condition, ignoring low mileage or upgrades, or failing to account for regional market conditions. You have the right to challenge the insurer's valuation with your own evidence of comparable sales.
Diminished Value Claims
Even after a vehicle is properly repaired, it may be worth less than it was before the accident simply because it now has an accident history. This loss in value is called diminished value. In many states, you can file a diminished value claim against the at-fault driver's insurance. This is frequently overlooked — insurers will not volunteer to pay diminished value. You must know to ask for it and support it with evidence, such as a diminished value appraisal.
Common Auto Damage Claim Disputes
- Repair vs. replace: Disagreements about whether certain parts should be repaired or replaced, and whether aftermarket or OEM (original equipment manufacturer) parts should be used.
- Total loss valuation:The insurer's ACV determination may be lower than the true market value of your vehicle.
- Supplemental damage: Hidden damage discovered after the initial inspection that increases repair costs beyond the original estimate.
- Rental and loss of use: Disputes over how long the insurer will cover a rental vehicle while yours is being repaired or while a total loss is being settled.
How a Public Adjuster Helps
A licensed Public Adjuster can represent you in auto physical damage claims by reviewing the insurer's damage estimate and valuation, documenting all damage including supplemental and hidden damage, challenging low total loss valuations with comparable market data, pursuing diminished value claims when applicable, and negotiating with the insurance company to ensure a fair settlement. Whether your vehicle was damaged in a collision, by hail, or through vandalism, having professional representation levels the playing field with the insurer.
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