How to Recover Fair Compensation for Repairs, Vehicle Replacement, and Other Losses

When a car accident happens, injuries are often the primary concern, but property damage can create lasting financial burdens as well. Repair costs, diminished value, or the need for a vehicle replacement can leave accident victims struggling to move forward. Mississippi law provides a process for holding the at-fault driver accountable, but insurance companies often attempt to minimize payouts, leaving claimants without the compensation they deserve.

Understanding the claims process, the risks of quick settlements, and how seatbelt use may impact your ability to recover damages can make a significant difference in your case.

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How Property Damage Claims Work in Mississippi

Property damage claims allow accident victims to recover the cost of repairing or replacing their vehicle. Mississippi follows an at-fault system, meaning the person responsible for the accident is also responsible for covering damages. Typically, these claims are handled through insurance, but legal action may be necessary if an insurance company refuses to offer fair compensation.

Determining Fault for Property Damage

Liability for property damage is based on fault. Mississippi applies pure comparative negligence, which means that each party’s degree of fault affects their ability to recover compensation. If you were partially responsible for the accident, the amount you can recover is reduced based on your percentage of fault.

For example, if the total cost of repairs is $10,000, but you are found 20% at fault, your claim would be reduced by $2,000, leaving you eligible for $8,000. Insurance adjusters often try to assign a higher degree of fault to reduce their payout, so gathering strong evidence is crucial.

Types of Property Damage Compensation Available

• Vehicle Repairs: If your car can be fixed, the at-fault party’s insurance should cover reasonable repair costs.
• Vehicle Replacement: If the car is totaled (meaning repairs cost more than the car’s value), the insurer should compensate you for the fair market value of your vehicle.
• Diminished Value: Even after repairs, a car involved in an accident is worth less than an identical car with no history of damage. Mississippi allows diminished value claims to compensate for this loss.
• Personal Property Damage: Items inside the vehicle, such as phones, laptops, or car seats, may be covered under the claim.
• Rental Car Costs: You may be entitled to a rental vehicle while your car is being repaired or replaced.

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The Risks of Accepting a Quick Settlement Offer

Insurance companies often make low settlement offers quickly after an accident. While it may be tempting to accept the money and move on, these offers are often far lower than the true cost of your damages.

Why Insurance Companies Offer Less Than You Deserve

• They assume you may not know the full value of your claim.
• They count on financial pressure to push you into a fast settlement.
• They may not include compensation for hidden damage or diminished value.

Once you accept an offer, you typically cannot ask for more money later, even if additional problems arise. Getting a fair assessment of your damages and negotiating with the insurer can prevent costly mistakes.

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Does Not Wearing a Seatbelt Affect a Property Damage Claim?

Mississippi law does not bar a driver or passenger from recovering damages for personal injuries or property damage simply because they were not wearing a seatbelt. However, insurance companies may attempt to use this as a defense to reduce compensation for injuries by arguing that failing to wear a seatbelt contributed to the severity of the injuries.

For property damage claims, whether or not a seatbelt was used generally has no impact. The damage to the vehicle is independent of whether the driver or passengers were restrained. That said, some insurers may try to reduce a settlement by arguing that reckless behavior contributed to the accident. Having strong legal representation can help counter these tactics.

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What to Do If the Insurance Company Refuses to Pay Fair Compensation

If the insurance company denies your claim or offers an amount that does not fully cover your losses, you have options:

1. Request a written explanation: Ask the insurer for a formal reason for their denial or low offer.
2. Gather additional evidence: Repair estimates, mechanic reports, and diminished value assessments can strengthen your claim.
3. File a lawsuit if necessary: Mississippi law allows accident victims to sue for property damage. You generally have three years from the accident date to file a lawsuit under Mississippi Code § 15-1-49.

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If you are struggling to get fair compensation for property damage after a car accident, you do not have to deal with insurance companies alone. The attorneys at Kellum Law Firm, P.C. are ready to help you protect your rights. Call our Jackson office at (601) 969-2709 or our Port Gibson office at (601) 590-9000 to discuss your options and ensure you receive the compensation you deserve.

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Car Accident Frequently Asked Questions

How do I know if my car is considered totaled after an accident in Mississippi?
A vehicle is typically deemed a total loss if the repair costs exceed its fair market value. Mississippi law does not set a strict threshold, but most insurers follow a 75% rule, meaning if repairs cost more than 75% of the car’s value, it will likely be totaled.

Can I choose my own repair shop, or do I have to use the one recommended by the insurance company?
You have the right to select your own repair shop. However, insurance companies may try to steer you toward their preferred providers. If you choose your own shop, the insurer may require an additional estimate to ensure costs are reasonable.

What if my car was damaged in a hit-and-run accident?
If the at-fault driver is unknown, you may be able to file a claim under your own uninsured motorist coverage. Mississippi does not require uninsured motorist coverage, but if you have it, it can help pay for repairs or a replacement vehicle.

Does Mississippi allow diminished value claims after a car accident?
Yes. If your vehicle has lost market value due to the accident, you may be able to recover compensation for the diminished value. Some insurance companies may resist paying, so documentation and legal support may be necessary.

What happens if I was partially at fault for the accident?
Mississippi follows a pure comparative negligence rule, meaning your compensation is reduced by your percentage of fault. If you were 30% at fault, you would recover 70% of your damages. Insurance companies may try to exaggerate your fault to lower their payout, so presenting strong evidence is important.

How do I prove the true value of my car before the accident?
Fair market value can be established using sources like Kelley Blue Book, repair estimates, or expert appraisals. If an insurance company undervalues your vehicle, providing documentation of its pre-accident condition, mileage, and any recent upgrades can help support a higher valuation.

Should I accept the first settlement offer from the insurance company?
Quick settlement offers are often lower than what you are entitled to receive. Before accepting any offer, consider whether it fully covers repairs, rental car expenses, and diminished value. If not, negotiations or legal action may be necessary.

Can I sue the insurance company if they refuse to pay my property damage claim?
Yes. If an insurer unfairly denies or undervalues your claim, you may be able to file a lawsuit. Mississippi law provides legal remedies if an insurer acts in bad faith by refusing to honor a valid claim.

How long do I have to file a property damage lawsuit in Mississippi?
Under Mississippi Code § 15-1-49, you have three years from the date of the accident to file a lawsuit for property damage. Failing to take legal action within this period can result in losing your right to seek compensation.

What if my car was brand new? Can I recover more than the depreciated value?
Mississippi law generally allows recovery based on the fair market value of the vehicle at the time of the accident. Some insurance policies offer gap coverage, which can help cover the difference between the loan balance and the insurer’s payout for a totaled car.

Call For Your Free Consultation

If you’ve been injured in a Mississippi car accident, understanding how police reports impact your claim is crucial. At Kellum Law Firm, P.C., our attorneys can guide you through the claims process and ensure your rights are protected. Contact our Jackson office at (601) 969-2709 or our Port Gibson office at (601) 590-9000 to discuss your options and secure the compensation you deserve.