The aftermath of a car accident can be extremely stressful. Not only do you have to recover from your injuries, but you have to manage the financial impact as well.

It helps to understand the differences between two key types of damage: property damage and personal injury damage. Though we often talk about both together, insurance companies handle them differently.

If you suffered serious injuries in an accident, contact our Virginia Beach personal injury attorneys. We can negotiate with the insurance company on your behalf, so you can focus on healing your injuries and getting back to your normal life.

Property Damage vs. Personal Injury Damages

Property Damages

When insurance companies speak of property damage, they’re talking about what it will cost to repair or replace your vehicle and any other belongings damaged in the accident (such as your computer or cell phone). Your financial recovery for these things is typically very straightforward and consists of the fair market value of the property at the time of the accident.

If your car is totaled, for instance, you would be entitled to the market value of that vehicle from your insurance company. Because vehicles lose value after you purchase them, this amount will likely not be as much as you originally paid, and it may not be enough to pay off what you might still owe on the loan. This is why you may want to consider obtaining GAP insurance coverage if you have financed the purchase of your vehicle.

The same would hold true for any other belongings you may have to replace, such as a computer or cell phone. The insurance company would figure the amount owed related to the age and current market value of the item.

Personal Injury Damages

Any physical or emotional harm that you suffered as a result of the accident falls under the “personal injury” category when it comes to damages. This is a broader category as it may include any or all of the following damages:

Medical bills (past, current, future)
Lost wages or earning capacity
Pain and suffering
Emotional distress
Loss of enjoyment of life

These damages are usually more complicated to calculate and recover because they account for both tangible and intangible losses. Tangible losses are quantifiable, out-of-pocket expenses that can be proven through bills, receipts, and other financial records.

Intangible losses are damages that often don’t have an easy monetary value assigned to them. Examples include physical pain, ongoing discomfort or chronic pain, psychological trauma, anxiety, depression, inability to participate in hobbies, and the loss of companionship. Your personal injury attorney will help you calculate a dollar amount for these damages.

How Insurance Policies Address Property and Personal Injury Claims

Insurance companies usually separate property damage from personal injury protection or liability coverage. Property damage liability on an insurance policy covers damage to a vehicle or other property. Personal injury protection (PIP) covers medical expenses, lost wages, and other injury-related costs.

If you weren’t at fault in the accident but the at-fault driver’s insurance doesn’t fully cover your property damage, you might need to rely on your own insurance policy’s collision coverage.

Personal Injury Attorneys Focus on Injury Claims

It’s common for accident victims to suffer both property damages and personal injury damages. Personal injury attorneys focus mainly on recovering compensation for your personal injury damages.

You would file a claim with the at-fault party’s insurer, unless that person is uninsured or underinsured, in which case you may file a claim with your own insurance provider. You will also need to have your vehicle inspected by a repair shop or insurance adjuster to determine the cost of repairs or replacement.

Property damage claims are relatively straightforward, leaving little room for negotiation. That makes the process of working with the insurance company less complex. Personal injury damages, on the other hand, often involve complicated legal and medical issues. For those, it’s best to have an attorney to help you recover the full value of your damages.

Beware of Lowball Offers from Insurance Companies

Insurance companies typically care most about their bottom lines, so they may aim to minimize their payout to you. They may undervalue your car’s market value or agree to cover only the cheapest repairs. Should that happen, you have options:

Provide evidence: Keep receipts of everything connected to the cost of repairs or replacement. Create a list of comparable vehicles for sale in your area, along with independent appraisals, to support what you believe is the value of your vehicle.
Negotiate: You don’t have to accept the first offer from the insurance company. They will likely expect that you may want to negotiate to increase your settlement. Use your evidence to ask for a higher sum.
Consider legal action: If you’re struggling with your insurance company, you may need to involve an attorney.

How Your Personal Injury Attorney Can Help

As your personal injury attorneys, we can help build a strong claim on your behalf. We will gather the evidence needed to prove your case, and support it with expert witnesses if need be. We often work with medical experts, accident reconstruction specialists, and other professionals to show the full extent of your damages.

We will also negotiate directly with the insurance company, using our expertise to make sure they don’t pressure you into settling for less than you deserve, as we did for this client who suffered back and neck injuries when another driver rear-ended her car. We helped negotiate a $130,000 settlement in her favor.

Find our offices in Virginia Beach, Portsmouth, Hampton, Chesapeake, Norfolk, Suffolk, and Kitty Hawk, North Carolina.

What Is the Difference Between Property and Personal Injury Damages?