Insurance Law: Fixing Damaged Vehicles

If your vehicle has been damaged in an accident, the first thing to know is that any insurance company is only required to pay up to the value of your vehicle at the time of the accident. If the cost of repairs exceeds the value of your car, the insurer will often declare the vehicle a total loss, pay you the actual cash value of your vehicle, and take possession of the vehicle.

In the US, laws regarding insurance fixing a damaged vehicle vary by state. For example, in California, auto insurance helps pay for the injuries and damage that can happen when you own and drive a car or other motor vehicle. By contrast, Florida is a no-fault state, meaning each driver carries their own insurance to cover medical bills and car repairs up to a certain amount.

What to do if the other driver is at fault

If you've been in an accident and the other driver is at fault, there are several steps you should take to ensure your vehicle gets repaired or replaced, and that you don't suffer financially.

Firstly, at the scene of the accident, take photos of the damage and the accident scene, and obtain the names, addresses, telephone numbers, and driver's license numbers from all drivers. Also, get license plate(s) and vehicle identification numbers, and ask to see the driver's license(s) and vehicle registration(s) to verify the information. If the other driver doesn't have insurance, ask for their name, phone number, insurance company name, and policy number. Give the other driver your information, too.

When you get home, file a claim with the other driver's car insurance. Let your insurance company know about the accident, and if the police responded, get a copy of their report and send it to the other driver's insurance company. The other driver's insurance should pay for your car repairs, medical bills, and a rental car while your car is being repaired. However, there is no guarantee they will pay, and they may dispute the claim. If this happens, ask for their reason in writing and in detail.

If the other driver's insurance company refuses to pay, your next step is to file a claim with your own insurance company. If you have collision coverage, this will pay for your repair costs. If you have uninsured/underinsured motorist coverage, this will pay if the at-fault driver didn't have insurance or enough insurance to cover your repairs. This coverage also includes hit-and-run accidents if you didn't get the other driver's insurance information. If you have medical bills, your personal injury protection coverage, medical payments coverage, or uninsured/underinsured motorist coverage might pay. Your insurance company will then try to recover what they paid you from the other driver's insurance company, and if they are successful, you may get your deductible reimbursed.

Insurance company's liability for repairs

After a car accident, the first issue to deal with is getting your car fixed. If the accident was the fault of the other driver, you should be able to get the car fixed through their insurance company. If the other driver was at fault and had enough insurance coverage, you wouldn't typically make a claim against your own insurance policy.

If the other driver was at fault, their insurance company will need to accept responsibility for the accident before they will consider paying for repairs to your car. This is not easy, and most insurance companies will start from a position of denying liability. Once they accept responsibility, they will make you an offer. You are not required to automatically accept the first amount offered.

If the other driver's insurance company accepts responsibility, they will make you an offer. They may offer you the money for repairs, or they may offer to have the car repaired at one of their approved repair shops. If the car is deemed to be a total loss, they will pay you the estimated value of the vehicle at the time of the loss.

If you choose to go through the other driver's insurance company, you won't have to pay a deductible. They may also pay for a rental car during the repair process. However, if you go through your own insurance company, you will have specific rights under your insurance policy, such as a quick and affordable process for resolving disputes.

If you have only purchased liability insurance, as legally required, this won't help you get your car fixed. If the accident was mostly someone else's fault, their liability insurance should cover a minimum amount of property damage to your vehicle.

If your insurance company believes the other driver to be at fault, they may go after the other driver in a subrogation action. They will try to recover what they had to pay out on your claim and try to recover your deductible for you.

What You're Entitled to for Property Damage to Your Car

The responsible party needs to either repair your car back to the condition it was in before the accident or pay you for repairs. If your car was totalled, they need to give you the fair market value of the car pre-accident.

Getting reimbursed for your deductible

Understand Your Insurance Policy

Firstly, review your insurance policy thoroughly. Familiarise yourself with the terms and conditions, including the coverage types, deductibles, and any exceptions or limitations. Knowing exactly what your policy covers and what your responsibilities are is crucial.

Assess the Situation

If you've been in an accident, assess the situation and gather as much information as possible. Exchange information with the other driver(s), take photos of the damage, and contact the necessary emergency services. It's important to remain calm and collect as much evidence as you can to support any potential claims.

File a Claim

Contact your insurance company and file a claim as soon as possible. Provide them with all the relevant information and evidence regarding the accident. Remember that you will be required to pay your deductible before the insurance company covers the remaining costs of repairs or medical bills.

Determine Fault

Establishing fault is crucial in the reimbursement process. If another driver is at fault, their insurance company should cover your damages, including your deductible. If you are not at fault, your insurance company may pursue reimbursement from the at-fault driver's insurance company, and you should be reimbursed.

Seek Legal Assistance

If the at-fault driver is uninsured or underinsured, you may need to take legal action to seek reimbursement. Consult a car accident lawyer who can guide you through the process and help you include your deductible in the settlement demand. They can also assist in gathering evidence and negotiating with the liable party's insurance company.

Keep Detailed Records

Throughout the process, maintain detailed records of all communications, repairs, medical expenses, and any other relevant documentation. This will help support your case and ensure you have a paper trail to refer to if needed.

Be Persistent

Reimbursement may not always be straightforward, and insurance companies may deny claims or contest lawsuits. Remain persistent and continue to provide evidence to support your case. Remember that determining fault can take time, and it's important to keep paying your deductible, even if you're not at fault, to avoid delays in repairs or medical treatment.

Remember, each situation is unique, and it's always best to consult with a legal professional or your insurance company directly for specific advice regarding your case.

Additional liable parties

When it comes to fixing a damaged vehicle, there are a few additional liable parties that may be involved, beyond the insurance companies and the drivers involved in the accident. Here are some key parties that may be held responsible:

• The at-fault driver's insurance company: If the other driver is at fault for the accident and has liability coverage, you can file a third-party claim with their insurance company. This means that their insurance will cover the costs of repairing your vehicle, up to the policy limits.
• Your own insurance company: If the at-fault driver does not have insurance or has insufficient coverage, you may need to rely on your own insurance policy. Collision coverage will reimburse you for vehicle damage, regardless of who was at fault. Comprehensive coverage will cover damage caused by something other than a collision, such as weather or vandalism.
• Rental car company: If you need to rent a car while your vehicle is being repaired, the at-fault driver's insurance company may provide you with a rental car or alternative transportation. However, this is not always guaranteed, and it's important to check with their insurance company to understand their specific guidelines and requirements.
• Repair facilities: When choosing a repair shop for your vehicle, you have the right to select a facility of your choice. The insurance company may recommend or suggest specific repair shops, but ultimately, the decision is yours. The repair facility will work with the insurance company to determine the cost of repairs and negotiate any additional costs.
• State departments and legal professionals: If you are having difficulties resolving your claim or disagree with the amount offered by the insurance company, you can seek assistance from your state's department of insurance or consult with an experienced car accident lawyer. They can help you navigate the claims process, negotiate a fair settlement, and represent your interests if you need to take legal action.

Rental car coverage

When it comes to rental car coverage, there are a few key things to keep in mind. Firstly, if you already have a personal auto insurance policy, it's important to review what it covers in the event of renting a car. In most cases, your personal policy will provide sufficient coverage for rental cars, including liability, comprehensive, and collision. This means that you may not need to purchase additional rental car insurance from the rental agency. However, it's worth noting that policies differ, and some may not cover rental cars.

If you don't have a personal auto insurance policy, you will need to purchase liability coverage through the rental car company. This is a requirement, and you may also have the option to add additional coverages, such as collision and tire damage.

In terms of legal requirements, the laws vary depending on your location. For example, in Florida, if your car is deemed a total loss after an accident, you are entitled to its fair market value, and the at-fault driver's insurance company is generally responsible for covering the cost of a rental car while your car is being repaired or for a reasonable period after it has been totaled. On the other hand, in California, if you have purchased rental vehicle coverage, the insurance company will pay up to a specified amount per day for a specified number of days until your vehicle is repaired, the loss is paid, or the specified period ends.

It's always a good idea to carefully review your insurance policy and understand what is covered and what is excluded before renting a car. Additionally, if you have a high deductible on your auto policy, adding rental car insurance could be beneficial as it often carries no or low deductibles, potentially saving you money in the event of a claim.

Frequently asked questions