➢ Vehicle Claim Denied or Underpaid? Our Lawyers Can Help.
Texas drivers whose vehicle damage insurance claim was denied, delayed, or underpaid may be eligible to take legal action against their insurance company and recover the full amount owed under their policy.
Our law firm, Hissey Mulderig & Friend, is currently accepting first-party vehicle damage insurance claims from policyholders throughout Texas.
If you or a loved one filed a vehicle damage claim in Texas and your insurance company denied it, undervalued it, or has failed to respond, you may qualify to file a lawsuit and receive compensation.
Contact the attorneys at Hissey Mulderig & Friend toll-free at 1-866-806-8117, or submit a free case evaluation form to speak to an attorney and find out whether you qualify.
➢ What Your Policy Actually Promises
The standard Texas personal auto policy does not promise to make you whole. It promises the least of three things, minus the deductible: the actual cash value of the damaged property, the amount necessary to repair or replace it with property of like kind and quality, or the amount stated in the declarations.
The insurance company chooses which it pays. If it repairs, it owes the full cost of restoring the vehicle with parts of like kind and quality. If it declares a total loss, it owes actual cash value. Nearly every Texas vehicle claim dispute is a fight over one of those two numbers.
➢ When Texas Law Calls a Vehicle a Total Loss
Texas does not use a percentage trigger. Transportation Code Section 501.091 sets a full-value standard: a vehicle becomes a salvage motor vehicle when the cost of repairs exceeds its actual cash value immediately before the damage.
That is a higher bar than many states use. Sources claiming Texas totals a vehicle at 75 or 80 percent of value are describing other states.
The calculation also excludes specific items, which matters after a storm. As the Texas Department of Motor Vehicles explains in its salvage and nonrepairable vehicle manual, repair costs for this purpose leave out gradual damage, hail damage, exterior paint damage, the materials and labor for repainting, and sales tax on repairs.
Hail damage is expressly outside the calculation. A vehicle can be written off by an insurer as economically totaled from hail while never meeting the statutory definition that brands a Texas title. How insurers evaluate hail damage in the first place is covered on our page about Texas hail damage insurance claims.
➢ Salvage, Nonrepairable, and Owner-Retained
Three outcomes are possible once a vehicle is declared a total loss, and they are not the same.
A salvage title means the vehicle can be rebuilt. After repairs and inspection, it can be retitled as rebuilt salvage and driven legally again.
A nonrepairable title means the vehicle’s only remaining value is parts or scrap, and it can never be registered for road use in Texas again. That brand is permanent, so whether an insurer applies it is worth scrutiny.
Owner-retained means the policyholder keeps the vehicle. The insurer deducts what it would have received selling it for salvage, and the title still carries a brand. The deduction should match what the salvage was actually worth.
➢ How the Insurer Arrives at Actual Cash Value
Texas insurance regulations require a total loss settlement on a first-party vehicle claim to reflect actual cash value based on appropriate comparable vehicles, with documentation the claimant can review.
That last part is a right most policyholders never exercise. You can ask for the valuation report and read how the number was built. Three things are worth checking.
The comparable vehicles. Valuation software often pulls listings from a wide radius, dragging in inventory from Oklahoma, Louisiana, Arkansas, or New Mexico. Those markets do not price the way Texas dealers price, and the gap can run into four figures.
The condition adjustments. Reports frequently apply a downward adjustment for condition without anyone inspecting the vehicle in person and without a documented finding that it was below average. An unexplained deduction is a line item to challenge, not a fact.
The options and trim. Vehicles of the same model year vary widely by package, drivetrain, and equipment, and a valuation built on a base trim understates a loaded one.
➢ Sales Tax, Title, and Registration Fees
A total loss settlement is meant to put the policyholder in a position to replace the vehicle, and replacing one in Texas costs more than market value.
State sales tax, title transfer, and registration fees all apply to the replacement. These amounts are frequently missing from an initial offer and frequently added once someone asks for them itemized. Any settlement should list them as separate lines.
➢ Diminished Value in Texas
A repaired vehicle is often worth less than an identical vehicle that was never damaged, because the accident history follows it. Texas treats that loss differently depending on who is paying.
On a first-party claim against your own insurer, the Texas Department of Insurance has taken the position that an insurer is not obligated to pay diminished value when the vehicle has been completely repaired to its pre-damage condition, because the policy language does not require or refer to it.
That is a real limitation, and any firm telling you otherwise about a standard first-party Texas claim is overstating. Claims against a third party’s liability insurer follow different rules, and the Department’s position does not prevent an insurer and a policyholder from using loss of market value to resolve other disputes.
➢ The Appraisal Clause
Most Texas auto policies contain an appraisal provision, and it is the most underused tool in a valuation dispute.
Either side can demand an appraisal. Each party selects a competent, independent appraiser, the two attempt to agree on the amount of loss, and if they cannot, they select an umpire. An agreement between any two of the three sets the amount.
Appraisal settles how much, not whether the loss is covered. It is contractual, requires no lawsuit, and is often the fastest route out of a standoff over a valuation report.
➢ Prompt Payment Applies to Vehicle Claims
Unlike claims for storm damage to buildings, vehicle claims are not subject to Chapter 542A of the Texas Insurance Code and its pre-suit notice requirements. Vehicle claims remain under the Prompt Payment of Claims Act, which sets deadlines for acknowledging, investigating, and paying a claim.
An insurer that misses those deadlines can owe interest at 18 percent a year on the amount of the claim, plus reasonable attorney’s fees. That remedy is stronger than what now applies to a roof claim under Chapter 542A and its pre-suit notice requirements.
➢ Who Is Eligible to File a Texas Vehicle Damage Insurance Claim?
Texas vehicle owners may be eligible to file a claim if they meet the following case criteria:
- Owned a vehicle in Texas damaged by hail, wind, flooding, falling debris, or another covered event;
- Carried comprehensive or collision coverage on the vehicle at the time of the loss;
- Received a denial, a repair estimate you believe is too low, a total loss offer below the vehicle’s value, or no response after reporting the loss.
If you or a member of your family answered yes to all of the above criteria, you may qualify to file a lawsuit and receive compensation.
Flooded vehicles are covered by comprehensive auto coverage rather than by a flood policy, a distinction explained on our page about Texas flood damage insurance claims.
➢ Contact Our Law Firm to Start Your Claim Today
Our law firm, Hissey Mulderig & Friend, is accepting vehicle damage insurance claims involving hail, wind, flood, and storm losses, including disputed total loss valuations and underpaid repair estimates.
If you or a loved one had a Texas vehicle or other storm damage insurance claim denied, underpaid, or delayed by your insurance company, you may be eligible to file a lawsuit and receive compensation.
Find out whether you qualify or start your claim today by calling the lawyers at Hissey Mulderig & Friend toll-free at 1-866-806-8117, or by filling out the free case evaluation form located at the top of this page.
