What the Adjuster Just Said

Claims come with their own dialect. Here's the translation for the words that actually come up.

The people

Adjuster — the person handling your claim and deciding coverage and value. Claimant — whoever is making a claim, which may be you or the other party. Third party — someone claiming against your policy rather than their own. Independent appraiser — a valuer brought in when there's disagreement about worth.

The money

Actual cash value — the vehicle's worth immediately before the loss, depreciation included. Betterment — where a repair leaves you better off than before, a portion may be attributed to you. Supplement — additional damage found once repairs begin, added to the estimate. Salvage value — what the wrecked vehicle is worth to a buyer of damaged cars.

The process

First notice of loss — your initial report; the claim's starting gun. Reservation of rights — the insurer is proceeding while coverage questions remain open. Read that letter carefully. Subrogation — your insurer recovering from the at-fault party's insurer after paying you; a successful recovery often means your deductible comes back. Comparative fault — responsibility split between parties by percentage rather than assigned wholly to one.

The outcomes

Total loss — repair cost exceeds the carrier's threshold against value. Salvage title — the title brand that follows a totalled vehicle. Denial — the claim isn't covered; ask for the reason in writing and check it against your policy. Settlement — the agreed resolution and payment.

The one to watch for

Reservation of rights. It means coverage isn't confirmed yet. If you get one, read it closely and ask exactly which question is open.

The paperwork

Proof of loss — the documentation an insurer asks for to substantiate a claim. It is also the trigger that starts several of the response deadlines California sets for insurers, so the date you supply it is worth recording. Release — a document ending a claim in exchange for payment. Read it before signing, and never sign one covering injuries while treatment is ongoing. Appraisal — a policy mechanism, where one exists, for resolving a dispute about the amount of a covered loss rather than about coverage itself. Loss of use — the cost of being without your vehicle while it is repaired, which is what rental reimbursement responds to. Diminished value — the argument that a repaired vehicle is worth less than an equivalent one that was never damaged; whether it is recoverable depends on who is being asked to pay and under what policy, so ask rather than assume.

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