Auto Insurance: Small Claims, Big Benefits?

Small claims court is a great way to resolve minor civil disputes without the need for a lawyer. In the case of auto insurance, small claims court can be used to recoup the deductible paid to repair your vehicle after an accident. This can be done by filing a claim against the at-fault driver or their insurance company. However, it is important to inform your insurance carrier of your intentions, as they may have already started the subrogation process, which could affect your ability to recover your deductible.

Proving fault in a car accident

Proving fault after a car accident is essential, as the at-fault driver is typically held financially responsible for any injuries and property damage that occurred as a result. Here are some steps to help prove fault in a car accident:

Collect Evidence and Information:

• Take photos of the accident scene, vehicle damage, skid marks, traffic signs, and road conditions.
• Exchange information with all drivers involved, including names, addresses, driver's license numbers, insurance details, and vehicle information.
• Obtain contact information from eyewitnesses and take their statements. Witness testimonies can provide valuable unbiased accounts of the accident.

File a Police Report:

Contact the police and file a report, which will include details about the accident, such as when, where, and how it happened. The police report may also include the officer's opinion on who violated traffic laws and caused the accident. This report is crucial for insurance claims and legal proceedings.

Research Traffic Laws:

Familiarize yourself with the traffic laws in your state, as these can vary. Analyze the circumstances of your accident against these laws to help determine fault.

Analyze Vehicle Damage:

The location and nature of the damage to the vehicles involved can often indicate how the accident occurred and who was at fault. For example, in a rear-end collision, the driver in the back is usually at fault.

Consult Accident Reconstruction Experts:

In some cases, especially those involving catastrophic injury, it may be necessary to hire experts to recreate the accident and determine its cause. These experts can analyze vehicle damage, skid marks, and other evidence to determine key details about the accident.

Contact a Lawyer:

Consider seeking legal advice from a car accident attorney, especially if fault is disputed or if you have suffered significant injuries or property damage. A lawyer can help protect your rights, guide you through the legal process, and ensure you receive fair compensation.

Police reports as evidence

Police reports are often used by insurance companies, as well as by parties involved in mediation or settlement negotiations. They can be useful tools to determine the circumstances of the accident and get a preliminary assessment of fault.

A police report is usually admissible as evidence in small claims court. The theory is that an officer investigating the circumstances of the accident is in a better position to establish the truth of what happened than any other third party. However, this may depend on the laws of your state or country. For example, in the US, if your case is governed by the Federal Rules of Evidence (which applies to civil courts but generally not for small claims disputes), the main concern of admitting police records is that of hearsay. In this case, to avoid potential hearsay issues, you may need to get the police officer who wrote the report to come to court.

In California, for example, the Federal Rules of Evidence typically don't apply (or aren't strictly followed) in small claims courts, so there are no funky hearsay rules or exceptions.

If you have an accident and believe the other person was more at fault than you, it is almost always wise to call the police so that a report can be prepared. If the report supports your case, bring it to court. If it doesn't, be prepared to refute what it says, for example, with the testimony of an eyewitness. If both an eyewitness and a police report are against you, you might want to rethink the idea of a lawsuit.

Witness statements

• Finding Witnesses: In vehicle accident cases, witnesses can be the difference between winning and losing your case. It is better to have a disinterested witness than a close friend or family member. If you can't find a witness, work hard to develop other evidence, such as diagrams, photographs, and repair estimates.
• Police Accident Reports: Calling the police after an accident and obtaining a police report is generally a wise decision. Police reports are admissible as evidence in small claims court, and an officer's investigation at the scene can provide valuable insights into what happened.
• Negligence and Fault: To recover damages in a vehicle accident case, you must prove that the other party was negligent (careless) and breached the rules of the road. Safety-related violations of driving laws, such as running a red light, can be used to establish negligence.
• Owner vs. Driver: In most cases, the owner of the vehicle should file a claim, even if they were not driving at the time of the accident. The lawsuit should be brought against the negligent driver and, if they are not the owner, against the registered owner as well.
• Witness Testimonies: If your witness is willing to testify, prepare them for the hearing. Go over the facts, and ensure they interpret them similarly to you. Witnesses may have forgotten key details or may not recall them accurately, so it is important to refresh their memory.
• Written Witness Statements: If a witness cannot attend the hearing, ask them to write and sign a statement called a "declaration." This statement should include everything the witness wants to tell the judge and should be signed under penalty of perjury. Include the date, location, and contact information of the witness. If the witness is not from California, the statement should be signed before a notary public.
• Expert Witnesses: If your case involves a technical issue, such as vehicle damage, you may need to consult an expert. You can arrange for the expert to attend the hearing or provide a written statement.
• Subpoenaing Witnesses: If a witness refuses to cooperate, you can subpoena them. However, forcing someone to testify may not be a good idea, as they may not be a supportive witness. Subpoenas are more commonly used to obtain documents or to enable a witness to get time off work to testify.
• Witness Fees: Witnesses are entitled to witness fees, including $35 per day and 20 cents per mile for travel. If witness fees are requested, they must be paid for the witness to appear in court.

Vehicle damage repair costs

If you have insurance and decide to file a claim, you will need to pay what is known as a deductible. A deductible is the amount of money you are responsible for paying before the insurance company begins to cover the remaining costs. For example, if you have a $750 deductible and the damage to your car will cost $3,500 to repair, you will need to pay $750, and your insurance company will cover the remaining $2,750.

The deductible is applied to every car insurance claim you make, and you can choose between a low and high deductible. A low deductible means a higher insurance rate, whereas a high deductible means a lower insurance rate. It is recommended that you set your deductible at an amount that you can pay without impacting your lifestyle or financial situation.

If the cost to repair your vehicle is less than your deductible amount, there is no reason to make a claim with your auto insurance company, as they will not pay any amount toward the repair bill. For example, if you have a $1,000 deductible and your car repairs amount to $800, you will need to pay for all the repairs out of pocket.

In some cases, it may be better to pay for minor damages out of pocket to avoid filing a claim, as this could raise your premiums upon renewal. One minor claim under $1,000 may not raise your rates, but if you have additional claims in the future, your overall claims activity could cause your rates to rise, or your insurance company may decide not to renew your policy.

Personal injury claims

In California, an individual can sue for damages for bodily injuries resulting from an auto accident if their claim is for $10,000 or less. This limit is $7,500 if the defendant is covered by an auto insurance policy that includes a duty to defend.

In Illinois, the statute of limitations for bodily injury claims is two years from the date of the accident or within two years of the claimant's 18th birthday if they were under 18 when the accident occurred.

Before filing a personal injury claim in small claims court, it is important to check the rules and limitations of the specific court and jurisdiction. It is also advisable to consult with an attorney to ensure that the claim is valid and that all necessary evidence is available.

Frequently asked questions